DNOW INC (DNOW) Stock Fundamental Analysis
USA - NYSE:DNOW - US67011P1003 - Common Stock
15.49 USD
+0.29 (+1.91%)
15.49 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to DNOW. DNOW was compared to 50 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.
Of the past 5 years DNOW 4 years were profitable.
DNOW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DNOW has a Return On Assets (5.06%) which is in line with its industry peers.
DNOW has a Return On Equity of 7.27%. This is comparable to the rest of the industry: DNOW outperforms 48.00% of its industry peers.
DNOW has a Return On Invested Capital (7.99%) which is in line with 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 10.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 7.27% | ||
| ROIC | 7.99% |
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's Profit Margin of 3.49% is in line compared to the rest of the industry. DNOW outperforms 46.00% of its industry peers.
DNOW's Profit Margin has improved in the last couple of years.
DNOW has a Operating Margin of 5.57%. This is comparable to the rest of the industry: DNOW outperforms 44.00% of its industry peers.
DNOW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 22.96%, DNOW is doing worse than 66.00% of the companies in the same industry.
DNOW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.57% | ||
| PM (TTM) | 3.49% | ||
| GM | 22.96% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DNOW is destroying value.
DNOW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DNOW has less shares outstanding
The debt/assets ratio for DNOW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.55 indicates that DNOW is not in any danger for bankruptcy at the moment.
DNOW has a Altman-Z score of 3.55. This is in the better half of the industry: DNOW outperforms 64.00% of its industry peers.
DNOW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.55 |
ROIC/WACC0.84
WACC9.54%
2.3 Liquidity
A Current Ratio of 2.37 indicates that DNOW has no problem at all paying its short term obligations.
DNOW has a Current ratio of 2.37. This is in the better half of the industry: DNOW outperforms 62.00% of its industry peers.
DNOW has a Quick Ratio of 1.53. 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 of 1.53. This is in the better half of the industry: DNOW outperforms 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.15% 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.
Looking at the last year, DNOW shows a small growth in Revenue. The Revenue has grown by 2.78% in the last 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)2.15%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%8%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%-0.79%
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 6.91% on average per year.
The Revenue is expected to grow by 4.07% on average over the next years.
EPS Next Y4.77%
EPS Next 2Y2.63%
EPS Next 3Y11.19%
EPS Next 5Y6.91%
Revenue Next Year4.87%
Revenue Next 2Y4.08%
Revenue Next 3Y4.6%
Revenue Next 5Y4.07%
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
With a Price/Earnings ratio of 16.31, DNOW is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of DNOW indicates a somewhat cheap valuation: DNOW is cheaper than 78.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. DNOW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.99, which indicates a correct valuation of DNOW.
Based on the Price/Forward Earnings ratio, DNOW is valued a bit cheaper than 72.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DNOW to the average of the S&P500 Index (22.88), we can say DNOW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 15.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DNOW indicates a somewhat cheap valuation: DNOW is cheaper than 80.00% of the companies listed in the same industry.
DNOW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DNOW is cheaper than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.42
PEG (5Y)0.53
EPS Next 2Y2.63%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
DNOW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.49
+0.29 (+1.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners101.31%
Inst Owner Change0.2%
Ins Owners2.36%
Ins Owner Change1.79%
Market Cap1.66B
Analysts82.5
Price Target17.34 (11.94%)
Short Float %4.38%
Short Ratio3.75
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)24.26%
Min EPS beat(2)24.08%
Max EPS beat(2)24.44%
EPS beat(4)3
Avg EPS beat(4)32.03%
Min EPS beat(4)-1.96%
Max EPS beat(4)81.55%
EPS beat(8)5
Avg EPS beat(8)18.44%
EPS beat(12)8
Avg EPS beat(12)15.8%
EPS beat(16)12
Avg EPS beat(16)45.71%
Revenue beat(2)2
Avg Revenue beat(2)0.26%
Min Revenue beat(2)0.02%
Max Revenue beat(2)0.5%
Revenue beat(4)3
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)1.07%
Revenue beat(8)4
Avg Revenue beat(8)-1.32%
Revenue beat(12)7
Avg Revenue beat(12)-0.85%
Revenue beat(16)10
Avg Revenue beat(16)0.04%
PT rev (1m)0%
PT rev (3m)3.03%
EPS NQ rev (1m)-1.41%
EPS NQ rev (3m)0%
EPS NY rev (1m)6.98%
EPS NY rev (3m)6.18%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)1.94%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 15.99 | ||
| P/S | 0.69 | ||
| P/FCF | 7.9 | ||
| P/OCF | 7.37 | ||
| P/B | 1.44 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 8.25 |
EPS(TTM)0.95
EY6.13%
EPS(NY)0.97
Fwd EY6.26%
FCF(TTM)1.96
FCFY12.66%
OCF(TTM)2.1
OCFY13.56%
SpS22.44
BVpS10.79
TBVpS8.02
PEG (NY)3.42
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 7.27% | ||
| ROCE | 11.11% | ||
| ROIC | 7.99% | ||
| ROICexc | 9.9% | ||
| ROICexgc | 14.24% | ||
| OM | 5.57% | ||
| PM (TTM) | 3.49% | ||
| GM | 22.96% | ||
| FCFM | 8.74% |
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
ROICexcg growth 3Y65.23%
ROICexcg 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 Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 38.46% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 130.06% | ||
| Profit Quality | 250% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 3.55 |
F-Score6
WACC9.54%
ROIC/WACC0.84
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)2.15%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%8%
EPS Next Y4.77%
EPS Next 2Y2.63%
EPS Next 3Y11.19%
EPS Next 5Y6.91%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%-0.79%
Revenue Next Year4.87%
Revenue Next 2Y4.08%
Revenue Next 3Y4.6%
Revenue Next 5Y4.07%
EBIT growth 1Y-2.9%
EBIT growth 3Y101.55%
EBIT growth 5Y23.83%
EBIT Next Year72.94%
EBIT Next 3Y25.1%
EBIT Next 5Y17.13%
FCF growth 1Y81.03%
FCF growth 3Y126.11%
FCF growth 5Y6.39%
OCF growth 1Y73.08%
OCF growth 3Y114.96%
OCF growth 5Y5.88%