DNOW INC (DNOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DNOW - US67011P1003 - Common Stock
14.3 USD
+0.03 (+0.21%)
14.3 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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DNOW has a decent growth rate and is not valued too expensively.
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.
DNOW had positive earnings in 4 of the past 5 years.
DNOW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DNOW's Return On Assets of 5.78% is in line compared to the rest of the industry. DNOW outperforms 60.00% of its industry peers.
The Return On Equity of DNOW (8.12%) is comparable to the rest of the industry.
DNOW's Return On Invested Capital of 8.34% is fine compared to the rest of the industry. DNOW outperforms 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 9.41%.
| 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
DNOW has a Profit Margin (3.95%) which is in line with its industry peers.
In the last couple of years the Profit Margin of DNOW has grown nicely.
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.
DNOW's Gross Margin of 23.11% is on the low side compared to the rest of the industry. DNOW is outperformed by 66.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DNOW is destroying value.
DNOW has less shares outstanding than it did 1 year ago.
DNOW has less shares outstanding than it did 5 years ago.
DNOW has a worse debt/assets ratio than last year.
2.2 Solvency
DNOW has an Altman-Z score of 4.98. This indicates that DNOW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.98, DNOW is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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 | 4.98 |
ROIC/WACC0.84
WACC9.97%
2.3 Liquidity
A Current Ratio of 2.52 indicates that DNOW has no problem at all paying its short term obligations.
DNOW has a better Current ratio (2.52) than 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.
Looking at the Quick ratio, with a value of 1.65, DNOW is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
| 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%.
DNOW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.27% yearly.
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-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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 14.30 indicates a correct valuation of DNOW.
Compared to the rest of the industry, the Price/Earnings ratio of DNOW indicates a rather cheap valuation: DNOW is cheaper than 86.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DNOW to the average of the S&P500 Index (26.54), we can say DNOW is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.35, which indicates a correct valuation of DNOW.
90.00% 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 (23.78), we can say DNOW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
DNOW's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 15 | ||
| EV/EBITDA | 12.95 |
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)0.46
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% |
14.3
+0.03 (+0.21%)
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 Cap2.65B
Revenue(TTM)2.43B
Net Income(TTM)96.00M
Analysts85
Price Target17.34 (21.26%)
Short Float %3.02%
Short Ratio2.7
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)-23.73%
EPS NQ rev (3m)-28.57%
EPS NY rev (1m)-10.7%
EPS NY rev (3m)-11.64%
Revenue NQ rev (1m)62.01%
Revenue NQ rev (3m)59.9%
Revenue NY rev (1m)14.93%
Revenue NY rev (3m)14.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 13.35 | ||
| P/S | 1.09 | ||
| P/FCF | 15 | ||
| P/OCF | 13.69 | ||
| P/B | 2.25 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | 12.95 |
EPS(TTM)1
EY6.99%
EPS(NY)1.07
Fwd EY7.49%
FCF(TTM)0.95
FCFY6.67%
OCF(TTM)1.04
OCFY7.31%
SpS13.1
BVpS6.37
TBVpS4.78
PEG (NY)N/A
PEG (5Y)0.46
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 | 4.98 |
F-Score6
WACC9.97%
ROIC/WACC0.84
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 14.3 and the Price/Book (PB) ratio is 2.25.
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.