DNOW INC (DNOW) Stock Fundamental Analysis

NYSE:DNOW • US67011P1003

11.85 USD
-1.38 (-10.43%)
At close: Feb 23, 2026
11.9043 USD
+0.05 (+0.46%)
After Hours: 2/23/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

DNOW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make DNOW suitable for value investing!


Dividend Valuation Growth Profitability Health

5

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.
  • 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 0 200M -200M -400M

1.2 Ratios

  • The Return On Assets of DNOW (5.78%) is better than 62.00% of its industry peers.
  • The Return On Equity of DNOW (8.12%) 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 68.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for DNOW is in line with the industry average of 9.43%.
Industry RankSector 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
DNOW Yearly ROA, ROE, ROICDNOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60

1.3 Margins

  • The Profit Margin of DNOW (3.95%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of DNOW has grown nicely.
  • DNOW's Operating Margin of 5.84% is in line compared to the rest of the industry. DNOW outperforms 54.00% of its industry peers.
  • In the last couple of years the Operating Margin of DNOW has grown nicely.
  • 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.
  • DNOW's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
DNOW Yearly Profit, Operating, Gross MarginsDNOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • 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.
DNOW Yearly Shares OutstandingDNOW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
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 500M 1B 1.5B

2.2 Solvency

  • DNOW has an Altman-Z score of 4.74. This indicates that DNOW is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.74, DNOW is doing good in the industry, outperforming 80.00% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.74
ROIC/WACC0.87
WACC9.62%
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 0 200M 400M 600M 800M 1B

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 Current ratio of 2.52. This is in the better half of the industry: DNOW outperforms 72.00% 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.
  • With a decent Quick ratio value of 1.65, DNOW is doing good in the industry, outperforming 68.00% 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 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The earnings per share for DNOW have decreased by -2.17% in the last year.
  • DNOW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.79% yearly.
EPS 1Y (TTM)-2.17%
EPS 3Y-1.79%
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%67.95%

3.2 Future

  • The Earnings Per Share is expected to grow by 16.76% on average over the next years. This is quite good.
  • Based on estimates for the next years, DNOW will show a very strong growth in Revenue. The Revenue will grow by 21.72% on average per year.
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.
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 2B 4B 6B
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 1 -1

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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • DNOW is valuated correctly with a Price/Earnings ratio of 13.17.
  • 88.00% of the companies in the same industry are more expensive than DNOW, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of DNOW to the average of the S&P500 Index (26.64), we can say DNOW is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.99 indicates a reasonable valuation of DNOW.
  • Based on the Price/Forward Earnings ratio, DNOW is valued cheaper than 94.00% of the companies in the same industry.
  • DNOW is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.75, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.17
Fwd PE 10.99
DNOW Price Earnings VS Forward Price EarningsDNOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DNOW is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, DNOW is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.43
EV/EBITDA 11.9
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

  • 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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • DNOW does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

DNOW INC

NYSE:DNOW (2/23/2026, 8:04:00 PM)

After market: 11.9043 +0.05 (+0.46%)

11.85

-1.38 (-10.43%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-20
Earnings (Next)05-05
Inst Owners61.39%
Inst Owner Change51.48%
Ins Owners1.41%
Ins Owner Change-0.03%
Market Cap2.20B
Revenue(TTM)N/A
Net Income(TTM)96.00M
Analysts84.44
Price Target18.02 (52.07%)
Short Float %4.71%
Short Ratio4.05
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)0%
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)-8.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)60.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)14.65%
Valuation
Industry RankSector Rank
PE 13.17
Fwd PE 10.99
P/S 0.9
P/FCF 12.43
P/OCF 11.34
P/B 1.86
P/tB 2.48
EV/EBITDA 11.9
EPS(TTM)0.9
EY7.59%
EPS(NY)1.08
Fwd EY9.1%
FCF(TTM)0.95
FCFY8.05%
OCF(TTM)1.04
OCFY8.82%
SpS13.1
BVpS6.37
TBVpS4.78
PEG (NY)0.66
PEG (5Y)N/A
Graham Number11.35
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)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 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 4.74
F-Score6
WACC9.62%
ROIC/WACC0.87
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)-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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 3Y101.55%
EBIT growth 5Y23.83%
EBIT Next Year97.87%
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 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 5 / 10.


Can you provide the PE and PB ratios for DNOW stock?

The Price/Earnings (PE) ratio for DNOW INC (DNOW) is 13.17 and the Price/Book (PB) ratio is 1.86.