DNOW INC (DNOW) Stock Fundamental Analysis
USA - NYSE:DNOW - US67011P1003 - Common Stock
14.7 USD
-0.07 (-0.47%)
14.7 USD
0 (0%)
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. DNOW has an excellent financial health rating, but there are some minor concerns on its profitability. DNOW has a correct valuation and a medium growth rate.
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.
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
Looking at the Return On Assets, with a value of 5.06%, DNOW is in line with its industry, outperforming 58.00% of the companies in the same industry.
The Return On Equity of DNOW (7.27%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.99%, DNOW is in line with its industry, outperforming 58.00% 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 10.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 7.27% | ||
| ROIC | 7.99% |
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
DNOW has a Profit Margin (3.49%) which is comparable to the rest of the industry.
DNOW's Profit Margin has improved in the last couple of years.
DNOW has a Operating Margin (5.57%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DNOW has grown nicely.
Looking at the Gross Margin, with a value of 22.96%, DNOW is doing worse than 66.00% 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 | 5.57% | ||
| PM (TTM) | 3.49% | ||
| GM | 22.96% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DNOW is creating some value.
Compared to 1 year ago, DNOW has less shares outstanding
Compared to 5 years ago, DNOW has less shares outstanding
Compared to 1 year ago, DNOW has a worse debt to assets ratio.
2.2 Solvency
DNOW has an Altman-Z score of 3.45. This indicates that DNOW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.45, DNOW is in the better half of the industry, outperforming 64.00% 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 | 3.45 |
ROIC/WACC0.85
WACC9.42%
2.3 Liquidity
DNOW has a Current Ratio of 2.37. This indicates that DNOW is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.37, DNOW is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
DNOW has a Quick Ratio of 1.53. This is a normal value and indicates that DNOW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of DNOW (1.53) is better than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.15% over the past year.
DNOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.83% yearly.
Looking at the last year, DNOW shows a small growth in Revenue. The Revenue has grown by 2.78% in the last year.
The Revenue has been decreasing by -4.27% on average over the past years.
EPS 1Y (TTM)2.15%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%8%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%-0.79%
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 6.91% on average per year.
Based on estimates for the next years, DNOW will show a small growth in Revenue. The Revenue will grow by 4.07% on average per year.
EPS Next Y3.66%
EPS Next 2Y2.27%
EPS Next 3Y5.2%
EPS Next 5Y6.91%
Revenue Next Year4.87%
Revenue Next 2Y4.08%
Revenue Next 3Y4.6%
Revenue Next 5Y4.07%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.47, DNOW is valued correctly.
78.00% of the companies in the same industry are more expensive than DNOW, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.10. DNOW is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.28, the valuation of DNOW can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DNOW indicates a somewhat cheap valuation: DNOW is cheaper than 74.00% of the companies listed in the same industry.
DNOW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 15.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DNOW is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
DNOW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DNOW is cheaper than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.5 | ||
| EV/EBITDA | 7.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.22
PEG (5Y)0.5
EPS Next 2Y2.27%
EPS Next 3Y5.2%
5. Dividend
5.1 Amount
DNOW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.7
-0.07 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners100.32%
Inst Owner Change-0.42%
Ins Owners2.32%
Ins Owner Change1.79%
Market Cap1.57B
Revenue(TTM)2.40B
Net Income(TTM)84.00M
Analysts82.5
Price Target17.34 (17.96%)
Short Float %5.95%
Short Ratio5.85
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)2
Avg EPS beat(2)24.26%
Min EPS beat(2)24.08%
Max EPS beat(2)24.44%
EPS beat(4)3
Avg EPS beat(4)32.03%
Min EPS beat(4)-1.96%
Max EPS beat(4)81.55%
EPS beat(8)5
Avg EPS beat(8)18.44%
EPS beat(12)8
Avg EPS beat(12)15.8%
EPS beat(16)12
Avg EPS beat(16)45.71%
Revenue beat(2)2
Avg Revenue beat(2)0.26%
Min Revenue beat(2)0.02%
Max Revenue beat(2)0.5%
Revenue beat(4)3
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)1.07%
Revenue beat(8)4
Avg Revenue beat(8)-1.32%
Revenue beat(12)7
Avg Revenue beat(12)-0.85%
Revenue beat(16)10
Avg Revenue beat(16)0.04%
PT rev (1m)0%
PT rev (3m)-2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.45%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)5.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 15.28 | ||
| P/S | 0.65 | ||
| P/FCF | 7.5 | ||
| P/OCF | 7 | ||
| P/B | 1.36 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 7.8 |
EPS(TTM)0.95
EY6.46%
EPS(NY)0.96
Fwd EY6.55%
FCF(TTM)1.96
FCFY13.34%
OCF(TTM)2.1
OCFY14.29%
SpS22.44
BVpS10.79
TBVpS8.02
PEG (NY)4.22
PEG (5Y)0.5
Graham Number15.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 7.27% | ||
| ROCE | 11.11% | ||
| ROIC | 7.99% | ||
| ROICexc | 9.9% | ||
| ROICexgc | 14.24% | ||
| OM | 5.57% | ||
| PM (TTM) | 3.49% | ||
| GM | 22.96% | ||
| FCFM | 8.74% |
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 Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 38.46% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 130.06% | ||
| Profit Quality | 250% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 3.45 |
F-Score6
WACC9.42%
ROIC/WACC0.85
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)2.15%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%8%
EPS Next Y3.66%
EPS Next 2Y2.27%
EPS Next 3Y5.2%
EPS Next 5Y6.91%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%-0.79%
Revenue Next Year4.87%
Revenue Next 2Y4.08%
Revenue Next 3Y4.6%
Revenue Next 5Y4.07%
EBIT growth 1Y-2.9%
EBIT growth 3Y101.55%
EBIT growth 5Y23.83%
EBIT Next Year76.39%
EBIT Next 3Y23.48%
EBIT Next 5Y17.13%
FCF growth 1Y81.03%
FCF growth 3Y126.11%
FCF growth 5Y6.39%
OCF growth 1Y73.08%
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 of DNOW INC (DNOW) stock?
ChartMill assigns a valuation rating of 5 / 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.
What are the PE and PB ratios of DNOW INC (DNOW) stock?
The Price/Earnings (PE) ratio for DNOW INC (DNOW) is 15.47 and the Price/Book (PB) ratio is 1.36.
What is the expected EPS growth for DNOW INC (DNOW) stock?
The Earnings per Share (EPS) of DNOW INC (DNOW) is expected to grow by 3.66% in the next year.