DNOW INC (DNOW) Stock Fundamental Analysis
NYSE:DNOW - New York Stock Exchange, Inc. - US67011P1003 - Common Stock - Currency: USD
DNOW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DNOW was profitable.
In the past year DNOW had a positive cash flow from operations.
In multiple years DNOW reported negative net income over the last 5 years.
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's Return On Assets of 12.73% is amongst the best of the industry. DNOW outperforms 95.83% of its industry peers.
DNOW's Return On Equity of 18.13% is fine compared to the rest of the industry. DNOW outperforms 64.58% of its industry peers.
DNOW has a Return On Invested Capital (8.78%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for DNOW is in line with the industry average of 9.86%.
The last Return On Invested Capital (8.78%) for DNOW is above the 3 year average (8.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.73% | ||
| ROE | 18.13% | ||
| ROIC | 8.78% |
ROA(3y)8.68%
ROA(5y)-4.48%
ROE(3y)12.94%
ROE(5y)-6.15%
ROIC(3y)8.11%
ROIC(5y)N/A
1.3 Margins
DNOW has a Profit Margin of 8.57%. This is in the better half of the industry: DNOW outperforms 77.08% of its industry peers.
DNOW's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 5.52%, DNOW is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of DNOW has grown nicely.
Looking at the Gross Margin, with a value of 22.78%, DNOW is doing worse than 72.92% of the companies in the same industry.
In the last couple of years the Gross Margin of DNOW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.52% | ||
| PM (TTM) | 8.57% | ||
| GM | 22.78% |
OM growth 3YN/A
OM growth 5Y20.91%
PM growth 3YN/A
PM growth 5Y44.48%
GM growth 3Y8.52%
GM growth 5Y2.73%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DNOW is destroying value.
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.
2.2 Solvency
DNOW has an Altman-Z score of 3.91. This indicates that DNOW is financially healthy and has little risk of bankruptcy at the moment.
DNOW has a better Altman-Z score (3.91) than 79.17% 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 | 3.91 |
ROIC/WACC0.81
WACC10.82%
2.3 Liquidity
DNOW has a Current Ratio of 2.54. This indicates that DNOW is financially healthy and has no problem in meeting its short term obligations.
DNOW has a better Current ratio (2.54) than 68.75% of its industry peers.
DNOW has a Quick Ratio of 1.66. This is a normal value and indicates that DNOW is financially healthy and should not expect problems in meeting its short term obligations.
DNOW has a better Quick ratio (1.66) than 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
The earnings per share for DNOW have decreased by -5.15% in the last year.
DNOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.83% yearly.
EPS 1Y (TTM)-5.15%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%13.64%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.88%
3.2 Future
Based on estimates for the next years, DNOW will show a small growth in Earnings Per Share. The EPS will grow by 3.62% on average per year.
DNOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.12% yearly.
EPS Next Y-6.59%
EPS Next 2Y2.09%
EPS Next 3Y7.48%
EPS Next 5Y3.62%
Revenue Next Year2.95%
Revenue Next 2Y3.92%
Revenue Next 3Y4.46%
Revenue Next 5Y3.12%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.95, which indicates a rather expensive current valuation of DNOW.
DNOW's Price/Earnings ratio is in line with the industry average.
DNOW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 20.28 indicates a rather expensive valuation of DNOW.
The rest of the industry has a similar Price/Forward Earnings ratio as DNOW.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, DNOW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 20.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DNOW indicates a somewhat cheap valuation: DNOW is cheaper than 60.42% of the companies listed in the same industry.
DNOW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DNOW is cheaper than 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.76 | ||
| EV/EBITDA | 9.88 |
4.3 Compensation for Growth
The decent profitability rating of DNOW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y2.09%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
No dividends for DNOW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.43
-0.07 (-0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners101.96%
Inst Owner Change0.25%
Ins Owners1.98%
Ins Owner Change-1.37%
Market Cap1.84B
Analysts84.44
Price Target18.7 (7.29%)
Short Float %1.83%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)0.08%
Min EPS beat(2)-1.96%
Max EPS beat(2)2.12%
EPS beat(4)2
Avg EPS beat(4)5.1%
Min EPS beat(4)-10.49%
Max EPS beat(4)30.72%
EPS beat(8)4
Avg EPS beat(8)5.08%
EPS beat(12)8
Avg EPS beat(12)32.91%
EPS beat(16)11
Avg EPS beat(16)46.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)-1.88%
Revenue beat(4)1
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)0.61%
Revenue beat(8)3
Avg Revenue beat(8)-1.48%
Revenue beat(12)6
Avg Revenue beat(12)-0.23%
Revenue beat(16)10
Avg Revenue beat(16)0.56%
PT rev (1m)0%
PT rev (3m)4.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.86%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-7.85%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-4.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 20.28 | ||
| P/S | 0.78 | ||
| P/FCF | 6.76 | ||
| P/OCF | 6.57 | ||
| P/B | 1.66 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 9.88 |
EPS(TTM)0.92
EY5.28%
EPS(NY)0.86
Fwd EY4.93%
FCF(TTM)2.58
FCFY14.8%
OCF(TTM)2.65
OCFY15.23%
SpS22.27
BVpS10.52
TBVpS8.19
PEG (NY)N/A
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.73% | ||
| ROE | 18.13% | ||
| ROCE | 11.11% | ||
| ROIC | 8.78% | ||
| ROICexc | 11.3% | ||
| ROICexgc | 15.51% | ||
| OM | 5.52% | ||
| PM (TTM) | 8.57% | ||
| GM | 22.78% | ||
| FCFM | 11.58% |
ROA(3y)8.68%
ROA(5y)-4.48%
ROE(3y)12.94%
ROE(5y)-6.15%
ROIC(3y)8.11%
ROIC(5y)N/A
ROICexc(3y)11.09%
ROICexc(5y)N/A
ROICexgc(3y)13.97%
ROICexgc(5y)N/A
ROCE(3y)10.26%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y18.32%
ROICexc growth 3YN/A
ROICexc growth 5Y23.94%
OM growth 3YN/A
OM growth 5Y20.91%
PM growth 3YN/A
PM growth 5Y44.48%
GM growth 3Y8.52%
GM growth 5Y2.73%
F-Score7
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 25.81% | ||
| Cap/Sales | 0.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 174.53% | ||
| Profit Quality | 135.15% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 3.91 |
F-Score7
WACC10.82%
ROIC/WACC0.81
Cap/Depr(3y)44.83%
Cap/Depr(5y)38.47%
Cap/Sales(3y)0.49%
Cap/Sales(5y)0.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.15%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%13.64%
EPS Next Y-6.59%
EPS Next 2Y2.09%
EPS Next 3Y7.48%
EPS Next 5Y3.62%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.88%
Revenue Next Year2.95%
Revenue Next 2Y3.92%
Revenue Next 3Y4.46%
Revenue Next 5Y3.12%
EBIT growth 1Y-9.09%
EBIT growth 3YN/A
EBIT growth 5Y13.91%
EBIT Next Year23.76%
EBIT Next 3Y9.1%
EBIT Next 5Y8.83%
FCF growth 1Y2375%
FCF growth 3Y-1.88%
FCF growth 5Y22.5%
OCF growth 1Y7125%
OCF growth 3Y-0.18%
OCF growth 5Y20.83%