DNOW INC (DNOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DNOW - US67011P1003 - Common Stock
13.495 USD
-0.08 (-0.55%)
Overall DNOW gets a fundamental rating of 6 out of 10. We evaluated DNOW against 50 industry peers in the Trading Companies & Distributors industry. While DNOW has a great health rating, its profitability is only average at the moment. DNOW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DNOW was profitable.
DNOW had a positive operating cash flow in the past year.
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
The Return On Assets of DNOW (5.78%) is comparable to the rest of the industry.
DNOW has a Return On Equity (8.12%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.34%, DNOW is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
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.
DNOW has a Operating Margin of 5.84%. This is comparable to the rest of the industry: DNOW outperforms 50.00% of its industry peers.
DNOW's Operating Margin has improved in the last couple of years.
The Gross Margin of DNOW (23.11%) is worse than 66.00% of its industry peers.
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.
The number of shares outstanding for DNOW has been reduced compared to 1 year ago.
The number of shares outstanding for DNOW has been reduced compared to 5 years ago.
The debt/assets ratio for DNOW is higher compared to a year ago.
2.2 Solvency
DNOW has an Altman-Z score of 4.82. This indicates that DNOW is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.82, DNOW is doing good in the industry, outperforming 74.00% of the companies in the same industry.
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 | 4.82 |
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.
With a decent Current ratio value of 2.52, DNOW is doing good in the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that DNOW should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.65, DNOW is doing good in 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
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
Based on estimates for the next years, DNOW will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.70% on average per year.
The Revenue is expected to grow by 21.34% on average over the next years. This is a very strong growth
EPS Next Y-4.65%
EPS Next 2Y8.75%
EPS Next 3Y12.38%
EPS Next 5Y12.7%
Revenue Next Year20.93%
Revenue Next 2Y51.63%
Revenue Next 3Y33.8%
Revenue Next 5Y21.34%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
DNOW is valuated correctly with a Price/Earnings ratio of 13.49.
Based on the Price/Earnings ratio, DNOW is valued cheaper than 88.00% of the companies in the same industry.
DNOW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
Based on the Price/Forward Earnings ratio of 12.40, the valuation of DNOW can be described as correct.
DNOW's Price/Forward Earnings ratio is rather cheap when compared to the industry. DNOW is cheaper than 92.00% of the companies in the same industry.
DNOW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.4 |
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 cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.16 | ||
| EV/EBITDA | 12.25 |
4.3 Compensation for Growth
DNOW's earnings are expected to grow with 12.38% in the coming years. This may justify a more expensive valuation.
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% |
NYSE:DNOW (1/12/2026, 3:17:09 PM)
13.495
-0.08 (-0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners61.39%
Inst Owner Change-0.38%
Ins Owners1.41%
Ins Owner Change0%
Market Cap2.51B
Revenue(TTM)2.43B
Net Income(TTM)96.00M
Analysts84.44
Price Target18.02 (33.53%)
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 | 13.5 | ||
| Fwd PE | 12.4 | ||
| P/S | 1.03 | ||
| P/FCF | 14.16 | ||
| P/OCF | 12.91 | ||
| P/B | 2.12 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 12.25 |
EPS(TTM)1
EY7.41%
EPS(NY)1.09
Fwd EY8.06%
FCF(TTM)0.95
FCFY7.06%
OCF(TTM)1.04
OCFY7.74%
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 | 4.82 |
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-4.65%
EPS Next 2Y8.75%
EPS Next 3Y12.38%
EPS Next 5Y12.7%
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 5Y21.34%
EBIT growth 1Y8.4%
EBIT growth 3Y101.55%
EBIT growth 5Y23.83%
EBIT Next Year98.99%
EBIT Next 3Y59.73%
EBIT Next 5Y36.71%
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 6 / 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 13.5 and the Price/Book (PB) ratio is 2.12.