DNOW INC (DNOW) Stock Fundamental Analysis
NYSE:DNOW - New York Stock Exchange, Inc. - US67011P1003 - Common Stock - Currency: USD
DNOW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 47 industry peers in the Trading Companies & Distributors industry. DNOW is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DNOW has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DNOW was profitable.
In the past year DNOW had a positive cash flow from operations.
DNOW had positive earnings in 4 of the past 5 years.
DNOW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DNOW has a better Return On Assets (4.97%) than 61.70% of its industry peers.
DNOW has a Return On Equity of 7.20%. This is comparable to the rest of the industry: DNOW outperforms 40.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.85%, DNOW is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DNOW is in line with the industry average of 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 7.2% | ||
| ROIC | 7.85% |
ROA(3y)10.2%
ROA(5y)-2.26%
ROE(3y)15.11%
ROE(5y)-3.01%
ROIC(3y)9.28%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DNOW (3.40%) is comparable to the rest of the industry.
DNOW's Profit Margin has improved in the last couple of years.
DNOW has a Operating Margin (5.40%) which is in line with its industry peers.
In the last couple of years the Operating Margin of DNOW has grown nicely.
Looking at the Gross Margin, with a value of 22.83%, DNOW is doing worse than 70.21% of the companies in the same industry.
In the last couple of years the Gross Margin of DNOW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.4% | ||
| PM (TTM) | 3.4% | ||
| GM | 22.83% |
OM growth 3Y72.3%
OM growth 5Y26.88%
PM growth 3Y123.35%
PM growth 5YN/A
GM growth 3Y1.01%
GM growth 5Y2.57%
2. Health
2.1 Basic Checks
DNOW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DNOW has less shares outstanding
DNOW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DNOW has a worse debt to assets ratio.
2.2 Solvency
DNOW has an Altman-Z score of 3.26. This indicates that DNOW is financially healthy and has little risk of bankruptcy at the moment.
DNOW's Altman-Z score of 3.26 is in line compared to the rest of the industry. DNOW outperforms 51.06% of its industry peers.
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 | 3.26 |
ROIC/WACC0.78
WACC10.07%
2.3 Liquidity
A Current Ratio of 2.32 indicates that DNOW has no problem at all paying its short term obligations.
The Current ratio of DNOW (2.32) is better than 63.83% of its industry peers.
DNOW has a Quick Ratio of 1.48. This is a normal value and indicates that DNOW is financially healthy and should not expect problems in meeting its short term obligations.
DNOW's Quick ratio of 1.48 is fine compared to the rest of the industry. DNOW outperforms 61.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
DNOW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
DNOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.83% yearly.
The Revenue has been growing slightly by 4.74% in the past year.
Measured over the past years, DNOW shows a decrease in Revenue. The Revenue has been decreasing by -4.27% on average per year.
EPS 1Y (TTM)0%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%4.76%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%6.39%
3.2 Future
The Earnings Per Share is expected to grow by 6.03% on average over the next years.
DNOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.50% yearly.
EPS Next Y-2.07%
EPS Next 2Y1.54%
EPS Next 3Y4.86%
EPS Next 5Y6.03%
Revenue Next Year3.41%
Revenue Next 2Y3.84%
Revenue Next 3Y3.32%
Revenue Next 5Y3.5%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 14.68, which indicates a correct valuation of DNOW.
Based on the Price/Earnings ratio, DNOW is valued cheaper than 85.11% of the companies in the same industry.
DNOW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.39, which indicates a correct valuation of DNOW.
Based on the Price/Forward Earnings ratio, DNOW is valued a bit cheaper than the industry average as 70.21% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DNOW to the average of the S&P500 Index (21.76), we can say DNOW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 14.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DNOW is valued cheaply inside the industry as 89.36% of the companies are valued more expensively.
93.62% of the companies in the same industry are more expensive than DNOW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.71 | ||
| EV/EBITDA | 7.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y1.54%
EPS Next 3Y4.86%
5. Dividend
5.1 Amount
No dividends for DNOW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.65
-0.19 (-1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners99.9%
Inst Owner Change-0.04%
Ins Owners2.35%
Ins Owner Change9.16%
Market Cap1.44B
Analysts82.5
Price Target16.83 (23.3%)
Short Float %2.25%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)2
Avg EPS beat(2)53%
Min EPS beat(2)24.44%
Max EPS beat(2)81.55%
EPS beat(4)3
Avg EPS beat(4)26.54%
Min EPS beat(4)-1.96%
Max EPS beat(4)81.55%
EPS beat(8)4
Avg EPS beat(8)15.07%
EPS beat(12)8
Avg EPS beat(12)17.81%
EPS beat(16)12
Avg EPS beat(16)50.45%
Revenue beat(2)2
Avg Revenue beat(2)0.54%
Min Revenue beat(2)0.02%
Max Revenue beat(2)1.07%
Revenue beat(4)2
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)1.07%
Revenue beat(8)3
Avg Revenue beat(8)-1.59%
Revenue beat(12)7
Avg Revenue beat(12)-0.22%
Revenue beat(16)10
Avg Revenue beat(16)0.12%
PT rev (1m)-13.16%
PT rev (3m)-10%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.54%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)-2.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 14.39 | ||
| P/S | 0.6 | ||
| P/FCF | 7.71 | ||
| P/OCF | 7.17 | ||
| P/B | 1.27 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 7.39 |
EPS(TTM)0.93
EY6.81%
EPS(NY)0.95
Fwd EY6.95%
FCF(TTM)1.77
FCFY12.98%
OCF(TTM)1.9
OCFY13.95%
SpS22.82
BVpS10.79
TBVpS8.01
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 7.2% | ||
| ROCE | 10.92% | ||
| ROIC | 7.85% | ||
| ROICexc | 9.62% | ||
| ROICexgc | 13.77% | ||
| OM | 5.4% | ||
| PM (TTM) | 3.4% | ||
| GM | 22.83% | ||
| FCFM | 7.76% |
ROA(3y)10.2%
ROA(5y)-2.26%
ROE(3y)15.11%
ROE(5y)-3.01%
ROIC(3y)9.28%
ROIC(5y)N/A
ROICexc(3y)12.28%
ROICexc(5y)N/A
ROICexgc(3y)16.15%
ROICexgc(5y)N/A
ROCE(3y)12.9%
ROCE(5y)N/A
ROICexcg growth 3Y60.02%
ROICexcg growth 5Y23.31%
ROICexc growth 3Y50.38%
ROICexc growth 5Y23.73%
OM growth 3Y72.3%
OM growth 5Y26.88%
PM growth 3Y123.35%
PM growth 5YN/A
GM growth 3Y1.01%
GM growth 5Y2.57%
F-Score7
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 36.84% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 119.64% | ||
| Profit Quality | 228.05% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.26 |
F-Score7
WACC10.07%
ROIC/WACC0.78
Cap/Depr(3y)46.41%
Cap/Depr(5y)37.91%
Cap/Sales(3y)0.51%
Cap/Sales(5y)0.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%4.76%
EPS Next Y-2.07%
EPS Next 2Y1.54%
EPS Next 3Y4.86%
EPS Next 5Y6.03%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%6.39%
Revenue Next Year3.41%
Revenue Next 2Y3.84%
Revenue Next 3Y3.32%
Revenue Next 5Y3.5%
EBIT growth 1Y-4.41%
EBIT growth 3Y95.2%
EBIT growth 5Y21.47%
EBIT Next Year72.25%
EBIT Next 3Y25.1%
EBIT Next 5Y20.22%
FCF growth 1Y9250%
FCF growth 3Y126.11%
FCF growth 5Y6.39%
OCF growth 1Y1156.25%
OCF growth 3Y114.96%
OCF growth 5Y5.88%