DNOW INC (DNOW)
US67011P1003 - Common Stock
Taking everything into account, DNOW scores 6 out of 10 in our fundamental rating. DNOW was compared to 51 industry peers in the Trading Companies & Distributors industry. DNOW has an excellent financial health rating, but there are some minor concerns on its profitability. DNOW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DNOW was profitable.
DNOW had a positive operating cash flow in the past year.
In multiple years DNOW reported negative net income over the last 5 years.
Of the past 5 years DNOW 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DNOW (15.89%) is better than 94.12% of its industry peers.
DNOW has a better Return On Equity (22.92%) than 70.59% of its industry peers.
DNOW's Return On Invested Capital of 9.96% is in line compared to the rest of the industry. DNOW outperforms 52.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DNOW is below the industry average of 11.58%.
The 3 year average ROIC (8.11%) for DNOW is below the current ROIC(9.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 22.92% | ||
| ROIC | 9.96% |
ROA(3y)8.68%
ROA(5y)-4.48%
ROE(3y)12.94%
ROE(5y)-6.15%
ROIC(3y)8.11%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 10.47%, DNOW is doing good in the industry, outperforming 70.59% of the companies in the same industry.
In the last couple of years the Profit Margin of DNOW has grown nicely.
DNOW has a Operating Margin of 6.03%. This is in the lower half of the industry: DNOW underperforms 64.71% of its industry peers.
In the last couple of years the Operating Margin of DNOW has grown nicely.
DNOW's Gross Margin of 23.05% is on the low side compared to the rest of the industry. DNOW is outperformed by 72.55% of its industry peers.
DNOW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.03% | ||
| PM (TTM) | 10.47% | ||
| GM | 23.05% |
OM growth 3YN/A
OM growth 5Y20.91%
PM growth 3YN/A
PM growth 5Y44.48%
GM growth 3Y8.52%
GM growth 5Y2.73%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DNOW is still creating some value.
Compared to 1 year ago, DNOW has less shares outstanding
The number of shares outstanding for DNOW has been reduced compared to 5 years ago.
The debt/assets ratio for DNOW is higher compared to a year ago.
2.2 Solvency
DNOW has an Altman-Z score of 3.62. This indicates that DNOW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.62, DNOW is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
There is no outstanding debt for DNOW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.07
WACC9.33%
2.3 Liquidity
A Current Ratio of 2.56 indicates that DNOW has no problem at all paying its short term obligations.
The Current ratio of DNOW (2.56) is better than 64.71% of its industry peers.
A Quick Ratio of 1.68 indicates that DNOW should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.68, DNOW is doing good in the industry, outperforming 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.11% over the past year.
DNOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.26% yearly.
Looking at the last year, DNOW shows a quite strong growth in Revenue. The Revenue has grown by 8.66% in the last year.
Measured over the past years, DNOW shows a decrease in Revenue. The Revenue has been decreasing by -5.79% on average per year.
EPS 1Y (TTM)2.11%
EPS 3YN/A
EPS 5Y21.26%
EPS growth Q2Q-12%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y12.76%
Revenue growth 5Y-5.79%
Revenue growth Q2Q1.46%
3.2 Future
Based on estimates for the next years, DNOW will show a small growth in Earnings Per Share. The EPS will grow by 4.64% on average per year.
Based on estimates for the next years, DNOW will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
EPS Next Y6.47%
EPS Next 2Y6.44%
EPS Next 3Y6.23%
EPS Next 5Y4.64%
Revenue Next Year3.01%
Revenue Next 2Y3.71%
Revenue Next 3Y3.54%
Revenue Next 5Y3.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.08, the valuation of DNOW can be described as correct.
DNOW's Price/Earnings is on the same level as the industry average.
DNOW is valuated rather cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
DNOW is valuated correctly with a Price/Forward Earnings ratio of 14.17.
DNOW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DNOW is cheaper than 62.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, DNOW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 14.17 |
4.2 Price Multiples
DNOW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DNOW is cheaper than 70.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DNOW is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.32 | ||
| EV/EBITDA | 7.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DNOW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)0.71
EPS Next 2Y6.44%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
DNOW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DNOW INC
NYSE:DNOW (4/26/2024, 7:04:00 PM)
After market: 14.6 -0.03 (-0.21%)14.63
-0.05 (-0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 14.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.33
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 22.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.03% | ||
| PM (TTM) | 10.47% | ||
| GM | 23.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.11%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y6.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.66%
Revenue growth 3Y12.76%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y