DNOW INC (DNOW) Fundamental Analysis & Valuation

NYSE:DNOW • US67011P1003

11.76 USD
-0.06 (-0.51%)
Last: Mar 10, 2026, 11:44 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This DNOW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to DNOW. DNOW was compared to 46 industry peers in the Trading Companies & Distributors industry. DNOW has a great financial health rating, but its profitability evaluates not so good. DNOW is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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.
  • Of the past 5 years DNOW 4 years were profitable.
  • In multiple years DNOW reported negative operating cash flow during the last 5 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

  • DNOW has a better Return On Assets (5.78%) than 69.57% of its industry peers.
  • 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.
  • With a decent Return On Invested Capital value of 8.34%, DNOW is doing good in the industry, outperforming 71.74% of the companies in the same industry.
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

  • DNOW has a Profit Margin of 3.95%. This is comparable to the rest of the industry: DNOW outperforms 58.70% of its industry peers.
  • DNOW's Operating Margin of 5.84% is in line compared to the rest of the industry. DNOW outperforms 56.52% of its industry peers.
  • DNOW's Gross Margin of 23.11% is on the low side compared to the rest of the industry. DNOW is outperformed by 65.22% of its industry peers.
  • In the last couple of years the Gross Margin of DNOW has declined.
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

  • 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
  • Compared to 1 year ago, DNOW has a worse debt to assets ratio.
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

  • An Altman-Z score of 4.42 indicates that DNOW is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.42, DNOW is in the better half of the industry, outperforming 73.91% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.42
ROIC/WACC0.83
WACC10.02%
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.
  • DNOW has a better Current ratio (2.52) than 76.09% of its industry peers.
  • 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.
  • 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

  • The earnings per share for DNOW have decreased by -2.17% in the last year.
  • 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.
  • Looking at the last year, DNOW shows a quite strong growth in Revenue. The Revenue has grown by 18.84% in the last year.
  • Measured over the past years, DNOW shows a quite strong growth in Revenue. The Revenue has been growing by 11.74% on average per year.
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

  • Based on estimates for the next years, DNOW will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.80% on average per year.
  • 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

  • The EPS growth rate is accelerating: in the next years the growth will be better 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.
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

  • With a Price/Earnings ratio of 13.07, DNOW is valued correctly.
  • Based on the Price/Earnings ratio, DNOW is valued cheaply inside the industry as 93.48% of the companies are valued more expensively.
  • DNOW is valuated cheaply when we compare the Price/Earnings ratio to 26.45, which is the current average of the S&P500 Index.
  • DNOW is valuated correctly with a Price/Forward Earnings ratio of 14.78.
  • Based on the Price/Forward Earnings ratio, DNOW is valued cheaper than 86.96% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of DNOW to the average of the S&P500 Index (24.65), we can say DNOW is valued slightly cheaper.
Industry RankSector Rank
PE 13.07
Fwd PE 14.78
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 65.22% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DNOW indicates a rather cheap valuation: DNOW is cheaper than 91.30% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.38
EV/EBITDA 10.53
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

  • DNOW does not give a dividend.
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 (3/10/2026, 11:44:10 AM)

11.76

-0.06 (-0.51%)

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 Cap2.19B
Revenue(TTM)2.82B
Net Income(TTM)96.00M
Analysts84.44
Price Target16.66 (41.67%)
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 13.07
Fwd PE 14.78
P/S 0.9
P/FCF 12.38
P/OCF 11.3
P/B 1.85
P/tB 2.47
EV/EBITDA 10.53
EPS(TTM)0.9
EY7.65%
EPS(NY)0.8
Fwd EY6.77%
FCF(TTM)0.95
FCFY8.08%
OCF(TTM)1.04
OCFY8.85%
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 4.42
F-Score8
WACC10.02%
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 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 13.07 and the Price/Book (PB) ratio is 1.85.