DNOW INC (DNOW) Fundamental Analysis & Valuation

NYSE:DNOW • US67011P1003

Current stock price

12.3 USD
+0.02 (+0.16%)
At close:
12.3 USD
0 (0%)
After Hours:

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

2

1. DNOW Profitability Analysis

1.1 Basic Checks

  • In the past year DNOW was profitable.
  • 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.
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's Return On Assets of -2.27% is on the low side compared to the rest of the industry. DNOW is outperformed by 70.21% of its industry peers.
  • Looking at the Return On Equity, with a value of -3.99%, DNOW is doing worse than 65.96% of the companies in the same industry.
Industry RankSector Rank
ROA -2.27%
ROE -3.99%
ROIC N/A
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's Operating Margin has declined in the last couple of years.
  • The Gross Margin of DNOW (16.99%) is worse than 78.72% of its industry peers.
  • In the last couple of years the Gross Margin of DNOW has grown nicely.
  • DNOW does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 16.99%
OM growth 3Y-14.1%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.83%
GM growth 5Y3.8%
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

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4

2. DNOW Health Analysis

2.1 Basic Checks

  • DNOW does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • Compared to 1 year ago, DNOW has more shares outstanding
  • The number of shares outstanding for DNOW has been increased compared to 5 years ago.
  • DNOW has a worse debt/assets ratio than last year.
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

  • Based on the Altman-Z score of 1.62, we must say that DNOW is in the distress zone and has some risk of bankruptcy.
  • DNOW has a Altman-Z score of 1.62. This is in the lower half of the industry: DNOW underperforms 63.83% of its industry peers.
  • The Debt to FCF ratio of DNOW is 3.28, which is a good value as it means it would take DNOW, 3.28 years of fcf income to pay off all of its debts.
  • DNOW's Debt to FCF ratio of 3.28 is fine compared to the rest of the industry. DNOW outperforms 74.47% of its industry peers.
  • A Debt/Equity ratio of 0.19 indicates that DNOW is not too dependend on debt financing.
  • DNOW has a Debt to Equity ratio of 0.19. This is in the better half of the industry: DNOW outperforms 72.34% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 3.28
Altman-Z 1.62
ROIC/WACCN/A
WACC8.52%
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 2.34. This indicates that DNOW is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of DNOW (2.34) is better than 68.09% of its industry peers.
  • DNOW has a Quick Ratio of 1.11. 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 Quick ratio (1.11) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.34
Quick Ratio 1.11
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

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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.
  • DNOW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.79% yearly.
  • Looking at the last year, DNOW shows a quite strong growth in Revenue. The Revenue has grown by 18.84% in the last year.
  • DNOW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.74% yearly.
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

  • The Earnings Per Share is expected to grow by 10.80% on average over the next years. This is quite good.
  • DNOW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.08% yearly.
EPS Next Y-11.6%
EPS Next 2Y9.26%
EPS Next 3Y11.41%
EPS Next 5Y10.8%
Revenue Next Year66.98%
Revenue Next 2Y34.16%
Revenue Next 3Y23.14%
Revenue Next 5Y18.08%

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.
  • 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.
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

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5

4. DNOW Valuation Analysis

4.1 Price/Earnings Ratio

  • DNOW is valuated correctly with a Price/Earnings ratio of 13.67.
  • Based on the Price/Earnings ratio, DNOW is valued cheaper than 91.49% of the companies in the same industry.
  • DNOW is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 15.46 indicates a correct valuation of DNOW.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DNOW indicates a rather cheap valuation: DNOW is cheaper than 89.36% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, DNOW is valued a bit cheaper.
Industry RankSector Rank
PE 13.67
Fwd PE 15.46
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DNOW indicates a slightly more expensive valuation: DNOW is more expensive than 76.60% 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 85.11% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.11
EV/EBITDA 69.41
DNOW Per share dataDNOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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 (4/8/2026, 8:27:52 PM)

After market: 12.3 0 (0%)

12.3

+0.02 (+0.16%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-20
Earnings (Next)04-30
Inst Owners102.02%
Inst Owner Change0%
Ins Owners1.6%
Ins Owner Change7.49%
Market Cap2.29B
Revenue(TTM)2.82B
Net Income(TTM)-89.00M
Analysts84.44
Price Target16.66 (35.45%)
Short Float %5.19%
Short Ratio2.73
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)1
Avg EPS beat(2)3.64%
Min EPS beat(2)-1.96%
Max EPS beat(2)9.25%
EPS beat(4)3
Avg EPS beat(4)13.95%
Min EPS beat(4)-1.96%
Max EPS beat(4)24.44%
EPS beat(8)5
Avg EPS beat(8)15.88%
EPS beat(12)7
Avg EPS beat(12)13.2%
EPS beat(16)11
Avg EPS beat(16)18.45%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-2.44%
Max Revenue beat(2)-2.29%
Revenue beat(4)2
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.44%
Max Revenue beat(4)0.5%
Revenue beat(8)3
Avg Revenue beat(8)-1.43%
Revenue beat(12)5
Avg Revenue beat(12)-1.33%
Revenue beat(16)9
Avg Revenue beat(16)-0.33%
PT rev (1m)0%
PT rev (3m)-7.55%
EPS NQ rev (1m)-17.86%
EPS NQ rev (3m)-50%
EPS NY rev (1m)0%
EPS NY rev (3m)-26.88%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)-8.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-12.96%
Valuation
Industry RankSector Rank
PE 13.67
Fwd PE 15.46
P/S 0.81
P/FCF 17.11
P/OCF 14.79
P/B 1.03
P/tB 2.18
EV/EBITDA 69.41
EPS(TTM)0.9
EY7.32%
EPS(NY)0.8
Fwd EY6.47%
FCF(TTM)0.72
FCFY5.85%
OCF(TTM)0.83
OCFY6.76%
SpS15.13
BVpS11.98
TBVpS5.64
PEG (NY)N/A
PEG (5Y)N/A
Graham Number15.58
Profitability
Industry RankSector Rank
ROA -2.27%
ROE -3.99%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 16.99%
FCFM 4.75%
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)9.24%
ROCE(5y)9.18%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-14.1%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.83%
GM growth 5Y3.8%
F-Score4
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 3.28
Debt/EBITDA 11.57
Cap/Depr 40.38%
Cap/Sales 0.74%
Interest Coverage N/A
Cash Conversion 418.92%
Profit Quality N/A
Current Ratio 2.34
Quick Ratio 1.11
Altman-Z 1.62
F-Score4
WACC8.52%
ROIC/WACCN/A
Cap/Depr(3y)44.08%
Cap/Depr(5y)40.27%
Cap/Sales(3y)0.62%
Cap/Sales(5y)0.52%
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 2Y34.16%
Revenue Next 3Y23.14%
Revenue Next 5Y18.08%
EBIT growth 1Y-111.45%
EBIT growth 3Y-5.76%
EBIT growth 5YN/A
EBIT Next Year132.22%
EBIT Next 3Y46.38%
EBIT Next 5Y35.28%
FCF growth 1Y-53.63%
FCF growth 3YN/A
FCF growth 5Y-5.84%
OCF growth 1Y-47.99%
OCF growth 3YN/A
OCF growth 5Y-3.89%

DNOW INC / DNOW Fundamental Analysis FAQ

What is the fundamental rating for DNOW stock?

ChartMill assigns a fundamental rating of 4 / 10 to DNOW.


Can you provide the valuation status for DNOW INC?

ChartMill assigns a valuation rating of 5 / 10 to DNOW INC (DNOW). This can be considered as Fairly Valued.


How profitable is DNOW INC (DNOW) stock?

DNOW INC (DNOW) has a profitability rating of 2 / 10.


What is the earnings growth outlook for DNOW INC?

The Earnings per Share (EPS) of DNOW INC (DNOW) is expected to decline by -11.6% in the next year.