DNOW INC (DNOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DNOW - US67011P1003 - Common Stock
13.53 USD
-0.16 (-1.17%)
13.53 USD
0 (0%)
Overall DNOW gets a fundamental rating of 5 out of 10. We evaluated DNOW against 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 correct valuation and a medium growth rate.
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.
Of the past 5 years DNOW 4 years were profitable.
Of the past 5 years DNOW 4 years had a positive operating cash flow.
1.2 Ratios
DNOW has a Return On Assets (5.78%) which is comparable to the rest of the industry.
With a Return On Equity value of 8.12%, DNOW perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.34%, DNOW is doing good in the industry, outperforming 66.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DNOW is in line with the industry average of 9.63%.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Profit Margin, with a value of 3.95%, DNOW is in line with its industry, outperforming 54.00% of the companies in the same industry.
DNOW's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 23.11%, DNOW is doing worse than 66.00% of the companies in the same industry.
In the last couple of years the Gross Margin of DNOW has grown nicely.
| Industry Rank | Sector 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%
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
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 4.85 indicates that DNOW is not in any danger for bankruptcy at the moment.
DNOW has a Altman-Z score of 4.85. This is in the better half of the industry: DNOW outperforms 78.00% 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 | 4.85 |
ROIC/WACC0.86
WACC9.75%
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 Current ratio of 2.52. This is in the better half 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.
The Quick ratio of DNOW (1.65) is better than 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
DNOW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.36%, which is quite good.
DNOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.83% yearly.
The Revenue has been growing slightly by 3.18% in the past year.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.57% yearly.
DNOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
EPS Next Y-7.42%
EPS Next 2Y7.89%
EPS Next 3Y12.23%
EPS Next 5Y6.57%
Revenue Next Year20.14%
Revenue Next 2Y52.03%
Revenue Next 3Y33.77%
Revenue Next 5Y3.87%
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
The Price/Earnings ratio is 13.53, which indicates a correct valuation of DNOW.
Based on the Price/Earnings ratio, DNOW is valued cheaper than 86.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of DNOW to the average of the S&P500 Index (26.61), we can say DNOW is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.63 indicates a correct valuation of DNOW.
DNOW's Price/Forward Earnings ratio is rather cheap when compared to the industry. DNOW is cheaper than 90.00% of the companies in the same industry.
DNOW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 12.63 |
4.2 Price Multiples
DNOW's Enterprise Value to EBITDA is on the same level as the industry average.
88.00% 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 | 14.19 | ||
| EV/EBITDA | 12.37 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DNOW's earnings are expected to grow with 12.23% in the coming years.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y7.89%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
DNOW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
13.53
-0.16 (-1.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners61.04%
Inst Owner Change7.89%
Ins Owners1.41%
Ins Owner Change0%
Market Cap2.51B
Revenue(TTM)2.43B
Net Income(TTM)96.00M
Analysts85
Price Target17.34 (28.16%)
Short Float %3.57%
Short Ratio2.97
Dividend
| Industry Rank | Sector 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)0%
PT rev (3m)0%
EPS NQ rev (1m)-18.92%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)-10.7%
EPS NY rev (3m)-11.64%
Revenue NQ rev (1m)61.89%
Revenue NQ rev (3m)59.9%
Revenue NY rev (1m)14.93%
Revenue NY rev (3m)14.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 12.63 | ||
| P/S | 1.03 | ||
| P/FCF | 14.19 | ||
| P/OCF | 12.95 | ||
| P/B | 2.13 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 12.37 |
EPS(TTM)1
EY7.39%
EPS(NY)1.07
Fwd EY7.92%
FCF(TTM)0.95
FCFY7.05%
OCF(TTM)1.04
OCFY7.72%
SpS13.1
BVpS6.37
TBVpS4.78
PEG (NY)N/A
PEG (5Y)0.44
Graham Number11.97
Profitability
| Industry Rank | Sector 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)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 Turnover1.47
Health
| Industry Rank | Sector 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 | 4.85 |
F-Score6
WACC9.75%
ROIC/WACC0.86
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 Y-7.42%
EPS Next 2Y7.89%
EPS Next 3Y12.23%
EPS Next 5Y6.57%
Revenue 1Y (TTM)3.18%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%4.62%
Revenue Next Year20.14%
Revenue Next 2Y52.03%
Revenue Next 3Y33.77%
Revenue Next 5Y3.87%
EBIT growth 1Y8.4%
EBIT growth 3Y101.55%
EBIT growth 5Y23.83%
EBIT Next Year99.41%
EBIT Next 3Y59.98%
EBIT Next 5Y17.19%
FCF growth 1Y145.83%
FCF growth 3Y126.11%
FCF growth 5Y6.39%
OCF growth 1Y117.98%
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 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.
What are the PE and PB ratios of DNOW INC (DNOW) stock?
The Price/Earnings (PE) ratio for DNOW INC (DNOW) is 13.53 and the Price/Book (PB) ratio is 2.13.
What is the expected EPS growth for DNOW INC (DNOW) stock?
The Earnings per Share (EPS) of DNOW INC (DNOW) is expected to decline by -7.42% in the next year.