DNOW INC (DNOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DNOW - US67011P1003 - Common Stock
13.77 USD
+0.08 (+0.58%)
Taking everything into account, DNOW scores 5 out of 10 in our fundamental rating. DNOW was compared to 50 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DNOW had positive earnings in the past year.
In the past year DNOW had a positive cash flow from operations.
Of the past 5 years DNOW 4 years were profitable.
Of the past 5 years DNOW 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 5.78%, DNOW perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Return On Equity of DNOW (8.12%) is comparable to the rest of the industry.
DNOW's Return On Invested Capital of 8.34% is fine compared to the rest of the industry. DNOW outperforms 66.00% of its industry peers.
DNOW had an Average Return On Invested Capital over the past 3 years of 9.52%. This is in line with the industry average of 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 8.12% | ||
| ROIC | 8.34% |
ROA(3y)10.2%
ROA(5y)-2.26%
ROE(3y)15.11%
ROE(5y)-3.01%
ROIC(3y)9.52%
ROIC(5y)N/A
1.3 Margins
DNOW has a Profit Margin (3.95%) which is comparable to the rest of the industry.
DNOW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.84%, DNOW is in line with its industry, outperforming 50.00% of the companies in the same industry.
DNOW's Operating Margin has improved in the last couple of years.
DNOW has a Gross Margin of 23.11%. This is in the lower half of the industry: DNOW underperforms 66.00% of its industry peers.
DNOW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.84% | ||
| PM (TTM) | 3.95% | ||
| GM | 23.11% |
OM growth 3Y77.91%
OM growth 5Y29.34%
PM growth 3Y123.35%
PM growth 5YN/A
GM growth 3Y1.32%
GM growth 5Y2.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DNOW is destroying value.
DNOW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DNOW has been reduced compared to 5 years ago.
Compared to 1 year ago, DNOW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.85 indicates that DNOW is not in any danger for bankruptcy at the moment.
DNOW's Altman-Z score of 4.85 is fine compared to the rest of the industry. DNOW outperforms 78.00% 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 | 4.85 |
ROIC/WACC0.86
WACC9.75%
2.3 Liquidity
A Current Ratio of 2.52 indicates that DNOW has no problem at all paying its short term obligations.
DNOW's Current ratio of 2.52 is fine compared to the rest of the industry. DNOW outperforms 70.00% of its industry peers.
DNOW has a Quick Ratio of 1.65. This is a normal value and indicates that DNOW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DNOW (1.65) is better than 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.36% over the past year.
Measured over the past years, DNOW shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.83% on average per year.
The Revenue has been growing slightly by 3.18% in the past year.
DNOW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.27% yearly.
EPS 1Y (TTM)12.36%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%23.81%
Revenue 1Y (TTM)3.18%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%4.62%
3.2 Future
The Earnings Per Share is expected to grow by 6.57% on average over the next years.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y-7.42%
EPS Next 2Y7.89%
EPS Next 3Y12.23%
EPS Next 5Y6.57%
Revenue Next Year20.14%
Revenue Next 2Y52.03%
Revenue Next 3Y33.77%
Revenue Next 5Y3.87%
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
DNOW is valuated correctly with a Price/Earnings ratio of 13.77.
DNOW's Price/Earnings ratio is rather cheap when compared to the industry. DNOW is cheaper than 86.00% 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 26.39.
A Price/Forward Earnings ratio of 12.86 indicates a correct valuation of DNOW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DNOW indicates a rather cheap valuation: DNOW is cheaper than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, DNOW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DNOW is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, DNOW is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.44 | ||
| EV/EBITDA | 12.37 |
4.3 Compensation for Growth
DNOW's earnings are expected to grow with 12.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y7.89%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
No dividends for DNOW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:DNOW (12/22/2025, 12:52:05 PM)
13.77
+0.08 (+0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners61.04%
Inst Owner Change7.89%
Ins Owners1.41%
Ins Owner Change0%
Market Cap2.56B
Revenue(TTM)2.43B
Net Income(TTM)96.00M
Analysts85
Price Target17.34 (25.93%)
Short Float %3.57%
Short Ratio2.97
Dividend
| Industry Rank | Sector 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)2
Avg EPS beat(2)16.66%
Min EPS beat(2)9.25%
Max EPS beat(2)24.08%
EPS beat(4)4
Avg EPS beat(4)34.83%
Min EPS beat(4)9.25%
Max EPS beat(4)81.55%
EPS beat(8)6
Avg EPS beat(8)19.96%
EPS beat(12)8
Avg EPS beat(12)15%
EPS beat(16)12
Avg EPS beat(16)33.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-2.44%
Max Revenue beat(2)0.5%
Revenue beat(4)3
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-2.44%
Max Revenue beat(4)1.07%
Revenue beat(8)4
Avg Revenue beat(8)-1.07%
Revenue beat(12)6
Avg Revenue beat(12)-1.06%
Revenue beat(16)9
Avg Revenue beat(16)-0.22%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-18.92%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)-10.7%
EPS NY rev (3m)-11.64%
Revenue NQ rev (1m)61.89%
Revenue NQ rev (3m)59.9%
Revenue NY rev (1m)14.93%
Revenue NY rev (3m)14.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 12.86 | ||
| P/S | 1.05 | ||
| P/FCF | 14.44 | ||
| P/OCF | 13.18 | ||
| P/B | 2.16 | ||
| P/tB | 2.88 | ||
| EV/EBITDA | 12.37 |
EPS(TTM)1
EY7.26%
EPS(NY)1.07
Fwd EY7.78%
FCF(TTM)0.95
FCFY6.92%
OCF(TTM)1.04
OCFY7.59%
SpS13.1
BVpS6.37
TBVpS4.78
PEG (NY)N/A
PEG (5Y)0.45
Graham Number11.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 8.12% | ||
| ROCE | 11.59% | ||
| ROIC | 8.34% | ||
| ROICexc | 10.65% | ||
| ROICexgc | 15.38% | ||
| OM | 5.84% | ||
| PM (TTM) | 3.95% | ||
| GM | 23.11% | ||
| FCFM | 7.28% |
ROA(3y)10.2%
ROA(5y)-2.26%
ROE(3y)15.11%
ROE(5y)-3.01%
ROIC(3y)9.52%
ROIC(5y)N/A
ROICexc(3y)12.59%
ROICexc(5y)N/A
ROICexgc(3y)16.61%
ROICexgc(5y)N/A
ROCE(3y)13.24%
ROCE(5y)N/A
ROICexgc growth 3Y65.23%
ROICexgc growth 5Y25.7%
ROICexc growth 3Y55.27%
ROICexc growth 5Y26.13%
OM growth 3Y77.91%
OM growth 5Y29.34%
PM growth 3Y123.35%
PM growth 5YN/A
GM growth 3Y1.32%
GM growth 5Y2.76%
F-Score6
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 40.48% | ||
| Cap/Sales | 0.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.44% | ||
| Profit Quality | 184.38% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 4.85 |
F-Score6
WACC9.75%
ROIC/WACC0.86
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)12.36%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%23.81%
EPS Next Y-7.42%
EPS Next 2Y7.89%
EPS Next 3Y12.23%
EPS Next 5Y6.57%
Revenue 1Y (TTM)3.18%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%4.62%
Revenue Next Year20.14%
Revenue Next 2Y52.03%
Revenue Next 3Y33.77%
Revenue Next 5Y3.87%
EBIT growth 1Y8.4%
EBIT growth 3Y101.55%
EBIT growth 5Y23.83%
EBIT Next Year99.41%
EBIT Next 3Y59.98%
EBIT Next 5Y17.19%
FCF growth 1Y145.83%
FCF growth 3Y126.11%
FCF growth 5Y6.39%
OCF growth 1Y117.98%
OCF growth 3Y114.96%
OCF growth 5Y5.88%
DNOW INC / DNOW FAQ
What is the fundamental rating for DNOW stock?
ChartMill assigns a fundamental rating of 5 / 10 to DNOW.
What is the valuation status of DNOW INC (DNOW) stock?
ChartMill assigns a valuation rating of 5 / 10 to DNOW INC (DNOW). This can be considered as Fairly Valued.
What is the profitability of DNOW stock?
DNOW INC (DNOW) has a profitability rating of 5 / 10.
What are the PE and PB ratios of DNOW INC (DNOW) stock?
The Price/Earnings (PE) ratio for DNOW INC (DNOW) is 13.77 and the Price/Book (PB) ratio is 2.16.
What is the expected EPS growth for DNOW INC (DNOW) stock?
The Earnings per Share (EPS) of DNOW INC (DNOW) is expected to decline by -7.42% in the next year.