DNOW INC (DNOW) Stock Fundamental Analysis
NYSE:DNOW • US67011P1003
11.78 USD
-0.08 (-0.67%)
At close: Feb 27, 2026
11.79 USD
+0.01 (+0.08%)
After Hours: 2/27/2026, 8:04:00 PM
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. While DNOW has a great health rating, there are worries on its profitability. DNOW may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- The reported operating cash flow has been mixed in the past 5 years: DNOW reported negative operating cash flow in multiple years.
1.2 Ratios
- DNOW has a Return On Assets of 5.78%. This is in the better half of the industry: DNOW outperforms 62.00% of its industry peers.
- Looking at the Return On Equity, with a value of 8.12%, DNOW is in line with its industry, outperforming 48.00% of the companies in the same industry.
- DNOW's Return On Invested Capital of 8.34% is fine compared to the rest of the industry. DNOW outperforms 68.00% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
- DNOW has a Profit Margin (3.95%) which is comparable to the rest of the industry.
- With a Operating Margin value of 5.84%, DNOW perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
- 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.
- DNOW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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.
- Compared to 1 year ago, DNOW has more shares outstanding
- Compared to 5 years ago, DNOW has more shares outstanding
- The debt/assets ratio for DNOW is higher compared to a year ago.
2.2 Solvency
- DNOW has an Altman-Z score of 4.40. This indicates that DNOW is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of DNOW (4.40) is better than 74.00% 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 | 4.4 |
ROIC/WACC0.88
WACC9.48%
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's Current ratio of 2.52 is fine compared to the rest of the industry. DNOW outperforms 72.00% 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 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
- DNOW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.17%.
- The Earnings Per Share has been decreasing by -1.79% on average over the past years.
- Looking at the last year, DNOW shows a quite strong growth in Revenue. The Revenue has grown by 18.84% in the last year.
- The Revenue has been growing by 11.74% on average over the past years. This is quite good.
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
- DNOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.76% yearly.
- DNOW is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.72% yearly.
EPS Next Y19.85%
EPS Next 2Y20.44%
EPS Next 3Y8.91%
EPS Next 5Y16.76%
Revenue Next Year92.57%
Revenue Next 2Y41.37%
Revenue Next 3Y-1.02%
Revenue Next 5Y21.72%
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.
- 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 13.09, the valuation of DNOW can be described as correct.
- DNOW's Price/Earnings ratio is rather cheap when compared to the industry. DNOW is cheaper than 88.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DNOW to the average of the S&P500 Index (27.07), we can say DNOW is valued rather cheaply.
- DNOW is valuated reasonably with a Price/Forward Earnings ratio of 10.92.
- Based on the Price/Forward Earnings ratio, DNOW is valued cheaper than 94.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, DNOW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DNOW is valued a bit cheaper than 70.00% of the companies in the same industry.
- DNOW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DNOW is cheaper than 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.36 | ||
| EV/EBITDA | 10.44 |
4.3 Compensation for Growth
- DNOW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.66
PEG (5Y)N/A
EPS Next 2Y20.44%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
- No dividends for DNOW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
11.78
-0.08 (-0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-20 2026-02-20/bmo
Earnings (Next)05-05 2026-05-05
Inst Owners61.39%
Inst Owner Change51.92%
Ins Owners1.41%
Ins Owner Change7.5%
Market Cap2.19B
Revenue(TTM)2.82B
Net Income(TTM)96.00M
Analysts84.44
Price Target16.66 (41.43%)
Short Float %4.71%
Short Ratio4.05
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)-7.55%
PT rev (3m)-3.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.92%
EPS NY rev (1m)0%
EPS NY rev (3m)12.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)24.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)113.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 10.92 | ||
| P/S | 0.9 | ||
| P/FCF | 12.36 | ||
| P/OCF | 11.27 | ||
| P/B | 1.85 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 10.44 |
EPS(TTM)0.9
EY7.64%
EPS(NY)1.08
Fwd EY9.16%
FCF(TTM)0.95
FCFY8.09%
OCF(TTM)1.04
OCFY8.87%
SpS13.1
BVpS6.37
TBVpS4.78
PEG (NY)0.66
PEG (5Y)N/A
Graham Number11.35
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)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 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 | 4.4 |
F-Score8
WACC9.48%
ROIC/WACC0.88
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 Y19.85%
EPS Next 2Y20.44%
EPS Next 3Y8.91%
EPS Next 5Y16.76%
Revenue 1Y (TTM)18.84%
Revenue growth 3Y9.7%
Revenue growth 5Y11.74%
Sales Q2Q%67.95%
Revenue Next Year92.57%
Revenue Next 2Y41.37%
Revenue Next 3Y-1.02%
Revenue Next 5Y21.72%
EBIT growth 1Y8.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year139.26%
EBIT Next 3Y46.38%
EBIT Next 5Y39.79%
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 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 7 / 10 to DNOW INC (DNOW). This can be considered as Undervalued.
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 13.09 and the Price/Book (PB) ratio is 1.85.