DNOW INC (DNOW) Stock Fundamental Analysis
USA - NYSE:DNOW - US67011P1003 - Common Stock
15.09 USD
-0.4 (-2.58%)
15.091 USD
+0 (+0.01%)
Overall DNOW gets a fundamental rating of 5 out of 10. We evaluated DNOW against 50 industry peers in the Trading Companies & Distributors industry. While DNOW has a great health rating, its profitability is only average at the moment. 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.
In the past year DNOW had a positive cash flow from operations.
DNOW had positive earnings in 4 of the past 5 years.
Of the past 5 years DNOW 4 years had a positive operating cash flow.
1.2 Ratios
DNOW has a Return On Assets of 5.06%. This is comparable to the rest of the industry: DNOW outperforms 58.00% of its industry peers.
DNOW's Return On Equity of 7.27% is in line compared to the rest of the industry. DNOW outperforms 48.00% of its industry peers.
The Return On Invested Capital of DNOW (7.99%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DNOW 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
With a Profit Margin value of 3.49%, DNOW perfoms like the industry average, outperforming 46.00% 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 (5.57%) which is in line with its industry peers.
DNOW's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 22.96%, DNOW is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DNOW has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DNOW is destroying 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.
DNOW has a worse debt/assets ratio than last year.
2.2 Solvency
DNOW has an Altman-Z score of 3.55. This indicates that DNOW is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.55, DNOW is doing good in the industry, outperforming 64.00% 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 | 3.55 |
ROIC/WACC0.83
WACC9.6%
2.3 Liquidity
A Current Ratio of 2.37 indicates that DNOW has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.37, DNOW is doing good in the industry, outperforming 62.00% of the companies in the same industry.
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 better Quick ratio (1.53) than 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
DNOW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.15%.
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.
DNOW shows a small growth in Revenue. In the last year, the Revenue has grown by 2.78%.
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
DNOW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.91% yearly.
DNOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
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
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 15.88, the valuation of DNOW can be described as correct.
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.
DNOW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.57 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, DNOW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
DNOW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DNOW is cheaper than 80.00% of the companies in the same industry.
96.00% 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 | 7.7 | ||
| 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)3.33
PEG (5Y)0.52
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 |
15.09
-0.4 (-2.58%)
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 Cap1.62B
Analysts82.5
Price Target17.34 (14.91%)
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 | 15.88 | ||
| Fwd PE | 15.57 | ||
| P/S | 0.67 | ||
| P/FCF | 7.7 | ||
| P/OCF | 7.18 | ||
| P/B | 1.4 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 8.25 |
EPS(TTM)0.95
EY6.3%
EPS(NY)0.97
Fwd EY6.42%
FCF(TTM)1.96
FCFY12.99%
OCF(TTM)2.1
OCFY13.92%
SpS22.44
BVpS10.79
TBVpS8.02
PEG (NY)3.33
PEG (5Y)0.52
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
WACC9.6%
ROIC/WACC0.83
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%