DNOW INC (DNOW) Fundamental Analysis & Valuation

NYSE:DNOW • US67011P1003

Current stock price

12.21 USD
-0.04 (-0.33%)
At close:
12.2 USD
-0.01 (-0.08%)
After Hours:

This DNOW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. DNOW Profitability Analysis

1.1 Basic Checks

  • In the past year DNOW was profitable.
  • DNOW had a positive operating cash flow in the past year.
  • Of the past 5 years DNOW 4 years were profitable.
  • DNOW had a positive operating cash flow in 4 of the past 5 years.
DNOW Yearly Net Income VS EBIT VS OCF VS FCFDNOW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M -400M

1.2 Ratios

  • DNOW's Return On Assets of -2.27% is on the low side compared to the rest of the industry. DNOW is outperformed by 74.47% of its industry peers.
  • DNOW has a Return On Equity of -3.99%. This is in the lower half of the industry: DNOW underperforms 70.21% of its industry peers.
Industry RankSector Rank
ROA -2.27%
ROE -3.99%
ROIC N/A
ROA(3y)6.21%
ROA(5y)5.75%
ROE(3y)8.72%
ROE(5y)8.41%
ROIC(3y)N/A
ROIC(5y)N/A
DNOW Yearly ROA, ROE, ROICDNOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40 -60

1.3 Margins

  • In the last couple of years the Operating Margin of DNOW has declined.
  • The Gross Margin of DNOW (16.99%) is worse than 80.85% of its industry peers.
  • DNOW's Gross Margin has improved in the last couple of years.
  • The Profit Margin and Operating Margin are not available for DNOW so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 16.99%
OM growth 3Y-14.1%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.83%
GM growth 5Y3.8%
DNOW Yearly Profit, Operating, Gross MarginsDNOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

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4

2. DNOW Health Analysis

2.1 Basic Checks

  • DNOW does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • DNOW has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, DNOW has more shares outstanding
  • DNOW has a worse debt/assets ratio than last year.
DNOW Yearly Shares OutstandingDNOW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
DNOW Yearly Total Debt VS Total AssetsDNOW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • Based on the Altman-Z score of 1.61, we must say that DNOW is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 1.61, DNOW is not doing good in the industry: 68.09% of the companies in the same industry are doing better.
  • DNOW has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as DNOW would need 3.28 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.28, DNOW is in the better half of the industry, outperforming 74.47% of the companies in the same industry.
  • DNOW has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
  • DNOW has a better Debt to Equity ratio (0.19) than 72.34% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 3.28
Altman-Z 1.61
ROIC/WACCN/A
WACC8.54%
DNOW Yearly LT Debt VS Equity VS FCFDNOW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 2.34 indicates that DNOW has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.34, DNOW is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
  • DNOW has a Quick Ratio of 1.11. This is a normal value and indicates that DNOW is financially healthy and should not expect problems in meeting its short term obligations.
  • DNOW has a Quick ratio (1.11) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.34
Quick Ratio 1.11
DNOW Yearly Current Assets VS Current LiabilitesDNOW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. DNOW Growth Analysis

3.1 Past

  • DNOW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.17%.
  • Measured over the past years, DNOW shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.79% on average per year.
  • Looking at the last year, DNOW shows a quite strong growth in Revenue. The Revenue has grown by 18.84% in the last year.
  • Measured over the past years, DNOW shows a quite strong growth in Revenue. The Revenue has been growing by 11.74% on average per year.
EPS 1Y (TTM)-2.17%
EPS 3Y-1.79%
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)18.84%
Revenue growth 3Y9.7%
Revenue growth 5Y11.74%
Sales Q2Q%67.95%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
  • DNOW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.08% yearly.
EPS Next Y-16.13%
EPS Next 2Y10.89%
EPS Next 3Y11.41%
EPS Next 5Y10.8%
Revenue Next Year66.98%
Revenue Next 2Y34.16%
Revenue Next 3Y23.14%
Revenue Next 5Y18.08%

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 accelerating.
  • 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.
DNOW Yearly Revenue VS EstimatesDNOW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B 5B
DNOW Yearly EPS VS EstimatesDNOW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 0.5 -0.5 1 -1

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5

4. DNOW Valuation Analysis

4.1 Price/Earnings Ratio

  • DNOW is valuated correctly with a Price/Earnings ratio of 13.57.
  • Based on the Price/Earnings ratio, DNOW is valued cheaper than 93.62% of the companies in the same industry.
  • DNOW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.78.
  • DNOW is valuated correctly with a Price/Forward Earnings ratio of 16.18.
  • 87.23% of the companies in the same industry are more expensive than DNOW, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.54, DNOW is valued a bit cheaper.
Industry RankSector Rank
PE 13.57
Fwd PE 16.18
DNOW Price Earnings VS Forward Price EarningsDNOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DNOW is valued a bit more expensive than 78.72% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DNOW indicates a rather cheap valuation: DNOW is cheaper than 87.23% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.98
EV/EBITDA 68.95
DNOW Per share dataDNOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.89%
EPS Next 3Y11.41%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DNOW Dividend Analysis

5.1 Amount

  • DNOW does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

DNOW Fundamentals: All Metrics, Ratios and Statistics

DNOW INC

NYSE:DNOW (4/10/2026, 8:17:45 PM)

After market: 12.2 -0.01 (-0.08%)

12.21

-0.04 (-0.33%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-20
Earnings (Next)04-30
Inst Owners102.34%
Inst Owner Change0%
Ins Owners1.54%
Ins Owner Change7.49%
Market Cap2.28B
Revenue(TTM)2.82B
Net Income(TTM)-89.00M
Analysts84.44
Price Target16.66 (36.45%)
Short Float %5.19%
Short Ratio2.73
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.64%
Min EPS beat(2)-1.96%
Max EPS beat(2)9.25%
EPS beat(4)3
Avg EPS beat(4)13.95%
Min EPS beat(4)-1.96%
Max EPS beat(4)24.44%
EPS beat(8)5
Avg EPS beat(8)15.88%
EPS beat(12)7
Avg EPS beat(12)13.2%
EPS beat(16)11
Avg EPS beat(16)18.45%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-2.44%
Max Revenue beat(2)-2.29%
Revenue beat(4)2
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.44%
Max Revenue beat(4)0.5%
Revenue beat(8)3
Avg Revenue beat(8)-1.43%
Revenue beat(12)5
Avg Revenue beat(12)-1.33%
Revenue beat(16)9
Avg Revenue beat(16)-0.33%
PT rev (1m)0%
PT rev (3m)-7.55%
EPS NQ rev (1m)-17.86%
EPS NQ rev (3m)-50%
EPS NY rev (1m)-5.13%
EPS NY rev (3m)-30.63%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)-8.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-12.96%
Valuation
Industry RankSector Rank
PE 13.57
Fwd PE 16.18
P/S 0.81
P/FCF 16.98
P/OCF 14.68
P/B 1.02
P/tB 2.16
EV/EBITDA 68.95
EPS(TTM)0.9
EY7.37%
EPS(NY)0.75
Fwd EY6.18%
FCF(TTM)0.72
FCFY5.89%
OCF(TTM)0.83
OCFY6.81%
SpS15.13
BVpS11.98
TBVpS5.64
PEG (NY)N/A
PEG (5Y)N/A
Graham Number15.58
Profitability
Industry RankSector Rank
ROA -2.27%
ROE -3.99%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 16.99%
FCFM 4.75%
ROA(3y)6.21%
ROA(5y)5.75%
ROE(3y)8.72%
ROE(5y)8.41%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.24%
ROCE(5y)9.18%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-14.1%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.83%
GM growth 5Y3.8%
F-Score4
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 3.28
Debt/EBITDA 11.57
Cap/Depr 40.38%
Cap/Sales 0.74%
Interest Coverage N/A
Cash Conversion 418.92%
Profit Quality N/A
Current Ratio 2.34
Quick Ratio 1.11
Altman-Z 1.61
F-Score4
WACC8.54%
ROIC/WACCN/A
Cap/Depr(3y)44.08%
Cap/Depr(5y)40.27%
Cap/Sales(3y)0.62%
Cap/Sales(5y)0.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.17%
EPS 3Y-1.79%
EPS 5YN/A
EPS Q2Q%-40%
EPS Next Y-16.13%
EPS Next 2Y10.89%
EPS Next 3Y11.41%
EPS Next 5Y10.8%
Revenue 1Y (TTM)18.84%
Revenue growth 3Y9.7%
Revenue growth 5Y11.74%
Sales Q2Q%67.95%
Revenue Next Year66.98%
Revenue Next 2Y34.16%
Revenue Next 3Y23.14%
Revenue Next 5Y18.08%
EBIT growth 1Y-111.45%
EBIT growth 3Y-5.76%
EBIT growth 5YN/A
EBIT Next Year129.92%
EBIT Next 3Y46.38%
EBIT Next 5Y35.28%
FCF growth 1Y-53.63%
FCF growth 3YN/A
FCF growth 5Y-5.84%
OCF growth 1Y-47.99%
OCF growth 3YN/A
OCF growth 5Y-3.89%

DNOW INC / DNOW Fundamental Analysis FAQ

What is the fundamental rating for DNOW stock?

ChartMill assigns a fundamental rating of 4 / 10 to DNOW.


Can you provide the valuation status for DNOW INC?

ChartMill assigns a valuation rating of 5 / 10 to DNOW INC (DNOW). This can be considered as Fairly Valued.


How profitable is DNOW INC (DNOW) stock?

DNOW INC (DNOW) has a profitability rating of 2 / 10.


What is the earnings growth outlook for DNOW INC?

The Earnings per Share (EPS) of DNOW INC (DNOW) is expected to decline by -16.13% in the next year.