DNOW INC (DNOW) Fundamental Analysis & Valuation

NYSE:DNOW • US67011P1003

Current stock price

11.58 USD
-0.22 (-1.86%)
Last:

This DNOW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. DNOW Profitability Analysis

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.
  • The reported operating cash flow has been mixed in the past 5 years: DNOW reported negative operating cash flow in multiple years.
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 2025 0 200M -200M -400M

1.2 Ratios

  • DNOW has a Return On Assets of 5.78%. This is in the better half of the industry: DNOW outperforms 68.09% of its industry peers.
  • DNOW has a Return On Equity of 8.12%. This is comparable to the rest of the industry: DNOW outperforms 51.06% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 8.34%, DNOW is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
Industry RankSector Rank
ROA 5.78%
ROE 8.12%
ROIC 8.34%
ROA(3y)6.21%
ROA(5y)5.75%
ROE(3y)8.72%
ROE(5y)8.41%
ROIC(3y)N/A
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 2025 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 57.45% of its industry peers.
  • DNOW's Operating Margin of 5.84% is in line compared to the rest of the industry. DNOW outperforms 55.32% of its industry peers.
  • The Gross Margin of DNOW (23.11%) is worse than 68.09% of its industry peers.
  • In the last couple of years the Gross Margin of DNOW has declined.
Industry RankSector Rank
OM 5.84%
PM (TTM) 3.95%
GM 23.11%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.92%
GM growth 5Y-7.58%
DNOW Yearly Profit, Operating, Gross MarginsDNOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. DNOW Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DNOW is destroying value.
  • DNOW has more shares outstanding than it did 1 year ago.
  • DNOW has more shares outstanding than it did 5 years ago.
  • DNOW has a worse debt/assets ratio than last year.
DNOW Yearly Shares OutstandingDNOW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
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 2025 1B 2B 3B

2.2 Solvency

  • DNOW has an Altman-Z score of 4.42. This indicates that DNOW is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.42, DNOW is doing good in the industry, outperforming 70.21% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.42
ROIC/WACC0.94
WACC8.84%
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 2025 0 500M 1B 1.5B 2B

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 has a better Current ratio (2.52) than 72.34% 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.
  • With a decent Quick ratio value of 1.65, DNOW is doing good in the industry, outperforming 70.21% of the companies in the same industry.
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 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. DNOW Growth Analysis

3.1 Past

  • The earnings per share for DNOW have decreased by -2.17% in the last year.
  • Measured over the past years, DNOW shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.79% on average per year.
  • Looking at the last year, DNOW shows a quite strong growth in Revenue. The Revenue has grown by 18.84% in the last year.
  • DNOW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.74% yearly.
EPS 1Y (TTM)-2.17%
EPS 3Y-1.79%
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)18.84%
Revenue growth 3Y9.7%
Revenue growth 5Y11.74%
Sales Q2Q%67.95%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 18.08% on average over the next years. This is quite good.
EPS Next Y-11.6%
EPS Next 2Y9.26%
EPS Next 3Y11.41%
EPS Next 5Y10.8%
Revenue Next Year66.98%
Revenue Next 2Y34.29%
Revenue Next 3Y23.14%
Revenue Next 5Y18.08%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 1B 2B 3B 4B 5B
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 0.5 -0.5 1 -1

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Find the best growth stocksShow best growing peers

5

4. DNOW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.87, which indicates a correct valuation of DNOW.
  • DNOW's Price/Earnings ratio is rather cheap when compared to the industry. DNOW is cheaper than 91.49% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.73. DNOW is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 14.56, the valuation of DNOW can be described as correct.
  • 91.49% 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 (23.72), we can say DNOW is valued slightly cheaper.
Industry RankSector Rank
PE 12.87
Fwd PE 14.56
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 a bit cheaper when compared to the industry. DNOW is cheaper than 70.21% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, DNOW is valued cheaper than 87.23% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.19
EV/EBITDA 10.51
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

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.26%
EPS Next 3Y11.41%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DNOW Dividend Analysis

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

DNOW Fundamentals: All Metrics, Ratios and Statistics

DNOW INC

NYSE:DNOW (3/20/2026, 11:03:58 AM)

11.58

-0.22 (-1.86%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-20
Earnings (Next)05-05
Inst Owners102.02%
Inst Owner Change51.88%
Ins Owners1.6%
Ins Owner Change7.49%
Market Cap2.16B
Revenue(TTM)2.82B
Net Income(TTM)96.00M
Analysts84.44
Price Target16.66 (43.87%)
Short Float %4.78%
Short Ratio2.73
Dividend
Industry RankSector 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)-7.55%
PT rev (3m)-3.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-26.24%
EPS NY rev (3m)-25.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-13.29%
Revenue NY rev (3m)-13.41%
Valuation
Industry RankSector Rank
PE 12.87
Fwd PE 14.56
P/S 0.89
P/FCF 12.19
P/OCF 11.12
P/B 1.83
P/tB 2.43
EV/EBITDA 10.51
EPS(TTM)0.9
EY7.77%
EPS(NY)0.8
Fwd EY6.87%
FCF(TTM)0.95
FCFY8.2%
OCF(TTM)1.04
OCFY8.99%
SpS13.05
BVpS6.34
TBVpS4.76
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.33
Profitability
Industry RankSector 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)6.21%
ROA(5y)5.75%
ROE(3y)8.72%
ROE(5y)8.41%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.92%
GM growth 5Y-7.58%
F-Score8
Asset Turnover1.47
Health
Industry RankSector 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 4.42
F-Score8
WACC8.84%
ROIC/WACC0.94
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.17%
EPS 3Y-1.79%
EPS 5YN/A
EPS Q2Q%-40%
EPS Next Y-11.6%
EPS Next 2Y9.26%
EPS Next 3Y11.41%
EPS Next 5Y10.8%
Revenue 1Y (TTM)18.84%
Revenue growth 3Y9.7%
Revenue growth 5Y11.74%
Sales Q2Q%67.95%
Revenue Next Year66.98%
Revenue Next 2Y34.29%
Revenue Next 3Y23.14%
Revenue Next 5Y18.08%
EBIT growth 1Y8.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year132.22%
EBIT Next 3Y46.38%
EBIT Next 5Y35.28%
FCF growth 1Y-35.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-30.96%
OCF growth 3YN/A
OCF growth 5YN/A

DNOW INC / DNOW Fundamental Analysis FAQ

What is the fundamental rating for DNOW stock?

ChartMill assigns a fundamental rating of 5 / 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 3 / 10.


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

The Price/Earnings (PE) ratio for DNOW INC (DNOW) is 12.87 and the Price/Book (PB) ratio is 1.83.