DNOW INC (DNOW) Fundamental Analysis & Valuation

NYSE:DNOW • US67011P1003

Current stock price

11.39 USD
+0.1 (+0.89%)
At close:
11.4 USD
+0.01 (+0.09%)
After Hours:

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

  • 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.
  • 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

  • With a decent Return On Assets value of 5.78%, DNOW is doing good in the industry, outperforming 69.57% of the companies in the same industry.
  • DNOW's Return On Equity of 8.12% is in line compared to the rest of the industry. DNOW outperforms 52.17% of its industry peers.
  • DNOW has a better Return On Invested Capital (8.34%) than 71.74% of its industry peers.
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

  • With a Profit Margin value of 3.95%, DNOW perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
  • Looking at the Operating Margin, with a value of 5.84%, DNOW is in line with its industry, outperforming 56.52% of the companies in the same industry.
  • DNOW has a Gross Margin of 23.11%. This is in the lower half of the industry: DNOW underperforms 65.22% of its industry peers.
  • DNOW's Gross Margin has declined in the last couple of years.
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

More info and screens

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.
  • The number of shares outstanding for DNOW has been increased compared to 1 year ago.
  • Compared to 5 years ago, DNOW has more shares outstanding
  • 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 4.30. This indicates that DNOW is financially healthy and has little risk of bankruptcy at the moment.
  • DNOW has a Altman-Z score of 4.30. This is in the better half of the industry: DNOW outperforms 73.91% 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 4.3
ROIC/WACC0.83
WACC10.07%
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.
  • The Current ratio of DNOW (2.52) is better than 73.91% of its industry peers.
  • A Quick Ratio of 1.65 indicates that DNOW should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.65, DNOW is in the better half of the industry, outperforming 73.91% 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

More info and screens

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

6

3. DNOW Growth Analysis

3.1 Past

  • DNOW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.17%.
  • 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.
  • DNOW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.84%.
  • 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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

6

4. DNOW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.66, which indicates a correct valuation of DNOW.
  • 93.48% of the companies in the same industry are more expensive than DNOW, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.70. DNOW is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 14.32, DNOW is valued correctly.
  • Based on the Price/Forward Earnings ratio, DNOW is valued cheaper than 86.96% of the companies in the same industry.
  • DNOW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.66
Fwd PE 14.32
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

  • Based on the Enterprise Value to EBITDA ratio, DNOW is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
  • DNOW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DNOW is cheaper than 91.30% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.99
EV/EBITDA 9.99
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%

More info and screens

Find the best dividend stocksShow peers with best dividend

DNOW Fundamentals: All Metrics, Ratios and Statistics

DNOW INC

NYSE:DNOW (3/13/2026, 8:21:25 PM)

After market: 11.4 +0.01 (+0.09%)

11.39

+0.1 (+0.89%)

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 Change7.5%
Market Cap2.12B
Revenue(TTM)2.82B
Net Income(TTM)96.00M
Analysts84.44
Price Target16.66 (46.27%)
Short Float %4.53%
Short Ratio2.83
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 12.66
Fwd PE 14.32
P/S 0.87
P/FCF 11.99
P/OCF 10.94
P/B 1.8
P/tB 2.39
EV/EBITDA 9.99
EPS(TTM)0.9
EY7.9%
EPS(NY)0.8
Fwd EY6.99%
FCF(TTM)0.95
FCFY8.34%
OCF(TTM)1.04
OCFY9.14%
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 4.3
F-Score8
WACC10.07%
ROIC/WACC0.83
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 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 3 / 10.


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

The Price/Earnings (PE) ratio for DNOW INC (DNOW) is 12.66 and the Price/Book (PB) ratio is 1.8.