DNOW INC (DNOW) Stock Fundamental Analysis
USA - NYSE:DNOW - US67011P1003 - Common Stock
13.35 USD
+0.93 (+7.49%)
13.35 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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DNOW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DNOW had positive earnings in the past year.
DNOW had a positive operating cash flow in the past year.
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's Return On Assets of 5.06% is in line compared to the rest of the industry. DNOW outperforms 58.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.27%, DNOW is in line with its industry, outperforming 48.00% of the companies in the same industry.
DNOW's Return On Invested Capital of 7.99% is fine compared to the rest of the industry. DNOW outperforms 64.00% 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 9.31%.
| 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 50.00% of its industry peers.
DNOW's Profit Margin has improved in the last couple of years.
DNOW has a Operating Margin (5.57%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DNOW has grown nicely.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DNOW is creating some value.
DNOW has about the same amout of 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 3.16 indicates that DNOW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.16, DNOW is in line with its industry, outperforming 60.00% 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 | 3.16 |
ROIC/WACC0.92
WACC8.66%
2.3 Liquidity
DNOW has a Current Ratio of 2.37. This indicates that DNOW is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DNOW (2.37) is better than 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.
Looking at the Quick ratio, with a value of 1.53, DNOW is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.53 |
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
The Revenue has been growing slightly by 2.24% 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)12.36%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%23.81%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%4.62%
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 Y3.66%
EPS Next 2Y2.27%
EPS Next 3Y5.2%
EPS Next 5Y6.91%
Revenue Next Year4.54%
Revenue Next 2Y3.88%
Revenue Next 3Y4.42%
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
Based on the Price/Earnings ratio of 13.35, the valuation of DNOW can be described as correct.
Based on the Price/Earnings ratio, DNOW is valued cheaper than 86.00% of the companies in the same industry.
DNOW is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.87, the valuation of DNOW can be described as correct.
80.00% of the companies in the same industry are more expensive than DNOW, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DNOW to the average of the S&P500 Index (34.46), we can say DNOW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 13.87 |
4.2 Price Multiples
86.00% of the companies in the same industry are more expensive than DNOW, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DNOW is valued cheaper than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.81 | ||
| EV/EBITDA | 6.35 |
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)3.64
PEG (5Y)0.43
EPS Next 2Y2.27%
EPS Next 3Y5.2%
5. Dividend
5.1 Amount
DNOW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.35
+0.93 (+7.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners100.32%
Inst Owner Change7.79%
Ins Owners2.32%
Ins Owner Change2.79%
Market Cap1.43B
Revenue(TTM)2.37B
Net Income(TTM)84.00M
Analysts82.5
Price Target17.34 (29.89%)
Short Float %6.7%
Short Ratio3.74
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.41%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)5.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 13.87 | ||
| P/S | 0.59 | ||
| P/FCF | 6.81 | ||
| P/OCF | 6.36 | ||
| P/B | 1.24 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 6.35 |
EPS(TTM)1
EY7.49%
EPS(NY)0.96
Fwd EY7.21%
FCF(TTM)1.96
FCFY14.69%
OCF(TTM)2.1
OCFY15.74%
SpS22.44
BVpS10.79
TBVpS8.02
PEG (NY)3.64
PEG (5Y)0.43
Graham Number15.58
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
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 Turnover1.45
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 | 3.16 |
F-Score6
WACC8.66%
ROIC/WACC0.92
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 Y3.66%
EPS Next 2Y2.27%
EPS Next 3Y5.2%
EPS Next 5Y6.91%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%4.62%
Revenue Next Year4.54%
Revenue Next 2Y3.88%
Revenue Next 3Y4.42%
Revenue Next 5Y4.07%
EBIT growth 1Y-2.9%
EBIT growth 3Y101.55%
EBIT growth 5Y23.83%
EBIT Next Year76.39%
EBIT Next 3Y23.48%
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%
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 6 / 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 13.35 and the Price/Book (PB) ratio is 1.24.
What is the expected EPS growth for DNOW INC (DNOW) stock?
The Earnings per Share (EPS) of DNOW INC (DNOW) is expected to grow by 3.66% in the next year.