DNOW INC (DNOW) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:DNOW • US67011P1003

15.19 USD
+0.12 (+0.8%)
At close: Jan 30, 2026
14.95 USD
-0.24 (-1.58%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to DNOW. DNOW was compared to 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

5

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.
  • Of the past 5 years DNOW 4 years were profitable.
  • Of the past 5 years DNOW 4 years had a positive operating cash flow.
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 0 200M -200M -400M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.78%, DNOW is in line with its industry, outperforming 60.00% of the companies in the same industry.
  • DNOW has a Return On Equity (8.12%) which is in line with its industry peers.
  • DNOW has a better Return On Invested Capital (8.34%) than 66.00% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for DNOW is in line with the industry average of 9.64%.
Industry RankSector 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
DNOW Yearly ROA, ROE, ROICDNOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60

1.3 Margins

  • DNOW's Profit Margin of 3.95% is in line compared to the rest of the industry. DNOW outperforms 54.00% of its industry peers.
  • In the last couple of years the Profit Margin of DNOW has grown nicely.
  • 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.
  • The Gross Margin of DNOW (23.11%) is worse than 68.00% of its industry peers.
  • DNOW's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
DNOW Yearly Profit, Operating, Gross MarginsDNOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20

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8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DNOW is destroying value.
  • Compared to 1 year ago, DNOW has less shares outstanding
  • DNOW has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for DNOW is higher compared to a year ago.
DNOW Yearly Shares OutstandingDNOW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
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 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 5.20 indicates that DNOW is not in any danger for bankruptcy at the moment.
  • DNOW has a better Altman-Z score (5.20) than 82.00% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.2
ROIC/WACC0.85
WACC9.79%
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 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • DNOW has a Current Ratio of 2.52. This indicates that DNOW is financially healthy and has no problem in meeting 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.
  • A Quick Ratio of 1.65 indicates that DNOW should not have too much problems paying its short term obligations.
  • DNOW has a Quick ratio of 1.65. This is in the better half of the industry: DNOW outperforms 66.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.52
Quick Ratio 1.65
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 200M 400M 600M 800M 1B

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6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 12.36% over the past year.
  • The Earnings Per Share has been growing by 30.83% on average over the past years. This is a very strong growth
  • DNOW shows a small growth in Revenue. In the last year, the Revenue has grown by 3.18%.
  • The Revenue has been decreasing by -4.27% on average over the past years.
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

  • DNOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.70% yearly.
  • DNOW is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.34% yearly.
EPS Next Y-5.21%
EPS Next 2Y8.28%
EPS Next 3Y12.38%
EPS Next 5Y12.7%
Revenue Next Year19.85%
Revenue Next 2Y51.92%
Revenue Next 3Y33.8%
Revenue Next 5Y21.34%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
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 2B 4B 6B
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 1 -1

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5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 15.19, DNOW is valued correctly.
  • Based on the Price/Earnings ratio, DNOW is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
  • DNOW is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
  • DNOW is valuated correctly with a Price/Forward Earnings ratio of 14.08.
  • Based on the Price/Forward Earnings ratio, DNOW is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of DNOW to the average of the S&P500 Index (25.57), we can say DNOW is valued slightly cheaper.
Industry RankSector Rank
PE 15.19
Fwd PE 14.08
DNOW Price Earnings VS Forward Price EarningsDNOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • DNOW's Enterprise Value to EBITDA ratio is in line with the industry average.
  • 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 RankSector Rank
P/FCF 15.93
EV/EBITDA 13.88
DNOW Per share dataDNOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • A more expensive valuation may be justified as DNOW's earnings are expected to grow with 12.38% in the coming years.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y8.28%
EPS Next 3Y12.38%

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0

5. Dividend

5.1 Amount

  • No dividends for DNOW!.
Industry RankSector Rank
Dividend Yield 0%

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DNOW INC / DNOW FAQ

What is the fundamental rating for DNOW stock?

ChartMill assigns a fundamental rating of 6 / 10 to DNOW.


What is the valuation status for 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.


Can you provide the PE and PB ratios for DNOW stock?

The Price/Earnings (PE) ratio for DNOW INC (DNOW) is 15.19 and the Price/Book (PB) ratio is 2.39.