DNOW INC (DNOW) Stock Fundamental Analysis
USA - NYSE:DNOW - US67011P1003 - Common Stock
12.9 USD
-0.23 (-1.75%)
12.9 USD
0 (0%)
Taking everything into account, DNOW scores 5 out of 10 in our fundamental rating. DNOW was compared to 51 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 decent growth rate and is not valued too expensively.
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.
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
DNOW has a Return On Assets (5.06%) which is comparable to the rest of the industry.
DNOW has a Return On Equity of 7.27%. This is comparable to the rest of the industry: DNOW outperforms 49.02% of its industry peers.
With a decent Return On Invested Capital value of 7.99%, DNOW is doing good in the industry, outperforming 64.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DNOW is in line with the industry average of 10.12%.
| 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's Profit Margin of 3.49% is in line compared to the rest of the industry. DNOW outperforms 49.02% of its industry peers.
In the last couple of years the Profit Margin of DNOW has grown nicely.
DNOW has a Operating Margin (5.57%) which is comparable to the rest of the industry.
DNOW's Operating Margin has improved in the last couple of years.
DNOW has a Gross Margin of 22.96%. This is in the lower half of the industry: DNOW underperforms 64.71% of its industry peers.
DNOW's Gross Margin has improved in the last couple of years.
| 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
DNOW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DNOW remains at a similar level compared to 1 year ago.
DNOW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DNOW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.25 indicates that DNOW is not in any danger for bankruptcy at the moment.
The Altman-Z score of DNOW (3.25) is better than 66.67% 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 | 3.25 |
ROIC/WACC0.86
WACC9.33%
2.3 Liquidity
A Current Ratio of 2.37 indicates that DNOW has no problem at all paying its short term obligations.
DNOW has a better Current ratio (2.37) than 62.75% of its industry peers.
A Quick Ratio of 1.53 indicates that DNOW should not have too much problems paying its short term obligations.
DNOW's Quick ratio of 1.53 is fine compared to the rest of the industry. DNOW outperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
DNOW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.36%, which is quite good.
Measured over the past years, DNOW shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.83% on average per year.
The Revenue has been growing slightly by 2.24% in the past year.
Measured over the past years, DNOW shows a decrease in Revenue. The Revenue has been decreasing by -4.27% on average per year.
EPS 1Y (TTM)12.36%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%23.81%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%4.62%
3.2 Future
The Earnings Per Share is expected to grow by 6.91% on average over the next years.
The Revenue is expected to grow by 4.07% on average over the next years.
EPS Next Y3.66%
EPS Next 2Y2.27%
EPS Next 3Y5.2%
EPS Next 5Y6.91%
Revenue Next Year4.54%
Revenue Next 2Y3.88%
Revenue Next 3Y4.42%
Revenue Next 5Y4.07%
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 decreasing.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.90, the valuation of DNOW can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of DNOW indicates a rather cheap valuation: DNOW is cheaper than 86.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, DNOW is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.41, DNOW is valued correctly.
Based on the Price/Forward Earnings ratio, DNOW is valued a bit cheaper than 74.51% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DNOW to the average of the S&P500 Index (33.72), we can say DNOW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 13.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DNOW is valued cheaply inside the industry as 86.27% 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 96.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.58 | ||
| EV/EBITDA | 6.79 |
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)3.52
PEG (5Y)0.42
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 |
12.9
-0.23 (-1.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners100.32%
Inst Owner Change0.09%
Ins Owners2.32%
Ins Owner Change1.73%
Market Cap1.38B
Revenue(TTM)2.37B
Net Income(TTM)84.00M
Analysts82.5
Price Target17.34 (34.42%)
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)0%
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)-0.32%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 13.41 | ||
| P/S | 0.57 | ||
| P/FCF | 6.58 | ||
| P/OCF | 6.14 | ||
| P/B | 1.2 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 6.79 |
EPS(TTM)1
EY7.75%
EPS(NY)0.96
Fwd EY7.46%
FCF(TTM)1.96
FCFY15.2%
OCF(TTM)2.1
OCFY16.28%
SpS22.44
BVpS10.79
TBVpS8.02
PEG (NY)3.52
PEG (5Y)0.42
Graham Number15.58
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 | 3.25 |
F-Score6
WACC9.33%
ROIC/WACC0.86
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)12.36%
EPS 3Y97.18%
EPS 5Y30.83%
EPS Q2Q%23.81%
EPS Next Y3.66%
EPS Next 2Y2.27%
EPS Next 3Y5.2%
EPS Next 5Y6.91%
Revenue 1Y (TTM)2.24%
Revenue growth 3Y13.29%
Revenue growth 5Y-4.27%
Sales Q2Q%4.62%
Revenue Next Year4.54%
Revenue Next 2Y3.88%
Revenue Next 3Y4.42%
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 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 5 / 10.
What are the PE and PB ratios of DNOW INC (DNOW) stock?
The Price/Earnings (PE) ratio for DNOW INC (DNOW) is 12.9 and the Price/Book (PB) ratio is 1.2.
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.