DNOW INC (DNOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DNOW - US67011P1003 - Common Stock
13.57 USD
-0.13 (-0.95%)
13.6268 USD
+0.06 (+0.42%)
Taking everything into account, DNOW scores 5 out of 10 in our fundamental rating. 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DNOW had positive earnings in the past year.
In the past year DNOW had a positive cash flow from operations.
Of the past 5 years DNOW 4 years were profitable.
DNOW had a positive operating cash flow in 4 of the past 5 years.
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.
DNOW had an Average Return On Invested Capital over the past 3 years of 9.52%. This 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
With a Profit Margin value of 3.95%, DNOW perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
DNOW's Profit Margin has improved in the last couple of years.
The Operating Margin of DNOW (5.84%) is comparable to the rest of the industry.
DNOW's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 23.11%, DNOW is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
DNOW's Gross Margin has improved in the last couple of years.
| 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
DNOW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DNOW has less shares outstanding than it did 1 year ago.
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 better Altman-Z score (4.85) than 76.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.85 |
ROIC/WACC0.85
WACC9.78%
2.3 Liquidity
A Current Ratio of 2.52 indicates that DNOW has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.52, DNOW is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
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.
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
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%.
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)3.18%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%4.62%
3.2 Future
The Earnings Per Share is expected to grow by 6.57% on average over the next years.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y-4.65%
EPS Next 2Y8.75%
EPS Next 3Y12.38%
EPS Next 5Y6.57%
Revenue Next Year20.93%
Revenue Next 2Y51.63%
Revenue Next 3Y33.8%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DNOW is valuated correctly with a Price/Earnings ratio of 13.57.
Based on the Price/Earnings ratio, DNOW is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.19. DNOW is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.47, DNOW is valued correctly.
Based on the Price/Forward Earnings ratio, DNOW is valued cheaper than 92.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. DNOW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DNOW is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, DNOW is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.23 | ||
| EV/EBITDA | 12.38 |
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)0.44
EPS Next 2Y8.75%
EPS Next 3Y12.38%
5. Dividend
5.1 Amount
No dividends for DNOW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
13.57
-0.13 (-0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners61.39%
Inst Owner Change0%
Ins Owners1.41%
Ins Owner Change0%
Market Cap2.52B
Revenue(TTM)2.43B
Net Income(TTM)96.00M
Analysts85
Price Target18.02 (32.79%)
Short Float %3.47%
Short Ratio2.72
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)3.92%
PT rev (3m)3.92%
EPS NQ rev (1m)6.67%
EPS NQ rev (3m)-23.81%
EPS NY rev (1m)2.99%
EPS NY rev (3m)-8.99%
Revenue NQ rev (1m)1.83%
Revenue NQ rev (3m)62.82%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)15.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 12.47 | ||
| P/S | 1.04 | ||
| P/FCF | 14.23 | ||
| P/OCF | 12.99 | ||
| P/B | 2.13 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 12.38 |
EPS(TTM)1
EY7.37%
EPS(NY)1.09
Fwd EY8.02%
FCF(TTM)0.95
FCFY7.03%
OCF(TTM)1.04
OCFY7.7%
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
WACC9.78%
ROIC/WACC0.85
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-4.65%
EPS Next 2Y8.75%
EPS Next 3Y12.38%
EPS Next 5Y6.57%
Revenue 1Y (TTM)3.18%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%4.62%
Revenue Next Year20.93%
Revenue Next 2Y51.63%
Revenue Next 3Y33.8%
Revenue Next 5Y3.87%
EBIT growth 1Y8.4%
EBIT growth 3Y101.55%
EBIT growth 5Y23.83%
EBIT Next Year98.99%
EBIT Next 3Y59.73%
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 for 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.
Can you provide the PE and PB ratios for DNOW stock?
The Price/Earnings (PE) ratio for DNOW INC (DNOW) is 13.57 and the Price/Book (PB) ratio is 2.13.