(DNOW) Now - NYSE
Sector: Industrials | Industry: Industrial Distribution | Exchange: NYSE (USA) | Market Cap: 2.494m USD | Total Return: -9.4% in 12m
Avg Turnover: 37.8M
EPS Trend: -63.1%
Qual. Beats: -1
Rev. Trend: 73.4%
Qual. Beats: 1
Warnings
Share dilution 73.8% YoY
Interest Coverage Ratio -0.8 is critical
Tailwinds
No distinct edge detected
DNOW Inc. is a global distributor of energy and industrial infrastructure products, specializing in pipe, valves, and fittings (PVF) alongside highly engineered process and production equipment. The company operates across the upstream, midstream, and downstream sectors, providing maintenance, repair, and operating (MRO) consumables and supply chain management services to diverse markets including oil and gas, renewables, and water treatment.
The industrial distribution sector relies heavily on inventory management and logistics scale to mitigate price volatility in raw materials like steel. DNOW utilizes a business model focused on integrated supply, where the distributor embeds its procurement systems directly into the customer’s workflow to reduce life-cycle costs and improve operational efficiency. Headquartered in Houston, Texas, the firm rebranded from NOW Inc. to DNOW Inc. in early 2024 to reflect its evolving market identity.
Investors can further evaluate the company’s fundamental health and valuation metrics on ValueRay. Serving a broad range of infrastructure projects, the company also offers specialized services such as valve inspection, modular wellsite solutions, and vapor recovery systems under its EcoVapor brand.
- Upstream oil and gas capital expenditure cycles dictate primary revenue growth
- Fluctuations in global steel prices impact margins on pipe and valve inventory
- Expansion into data center and renewable energy markets diversifies industrial revenue
- Strategic acquisitions of high-margin pump and process equipment providers drive earnings
- Midstream infrastructure project approvals influence long-term distribution contract volumes
| Net Income: -141.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -9.98 > 1.0 |
| NWC/Revenue: 38.81% < 20% (prev 25.20%; Δ 13.61% < -1%) |
| CFO/TA 0.02 > 3% & CFO 76.0m > Net Income -141.0m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 2.42 > 1.5 & < 3 |
| Outstanding Shares: last quarter (186.0m) vs 12m ago 73.83% < -2% |
| Gross Margin: 16.16% > 18% (prev 22.79%; Δ -6.63% > 0.5%) |
| Asset Turnover: 122.1% > 50% (prev 145.9%; Δ -23.86% > 0%) |
| Interest Coverage Ratio: -0.79 > 6 (EBIT TTM -76.0m / Interest Expense TTM 96.0m) |
| A: 0.34 (Total Current Assets 2.25b - Total Current Liabilities 929.0m) / Total Assets 3.93b |
| B: -0.22 (Retained Earnings -880.0m / Total Assets 3.93b) |
| C: -0.03 (EBIT TTM -76.0m / Avg Total Assets 2.79b) |
| D: 1.20 (Book Value of Equity 2.14b / Total Liabilities 1.78b) |
| Altman-Z'' = 2.55 = A |
| DSRI: 1.43 (Receivables 889.0m/439.0m, Revenue 3.40b/2.41b) |
| GMI: 1.41 (GM 22.79% / 16.16%) |
| AQI: 1.23 (AQ_t 0.32 / AQ_t-1 0.26) |
| SGI: 1.41 (Revenue 3.40b / 2.41b) |
| TATA: -0.06 (NI -141.0m - CFO 76.0m) / TA 3.93b) |
| Beneish M = -1.87 (Cap -4..+1) = B |
As of June 15, 2026, the stock is trading at USD 14.03 with a total of 2,207,650 shares traded.
Over the past week, the price has changed by +6.05%,
over one month by +5.25%,
over three months by +25.27% and
over the past year by -9.43%.
Now has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy DNOW.
- StrongBuy: 1
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 16 | 14% |
P/E Forward = 29.7619
P/S = 0.7325
P/B = 1.1663
Revenue TTM = 3.40b USD
EBIT TTM = -76.0m USD
EBITDA TTM = -12.0m USD
Long Term Debt = 571.0m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 855.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 166.0m
Net Debt = 739.0m USD (calculated: Debt 855.0m - CCE 116.0m)
Enterprise Value = 3.23b USD (2.49b + Debt 855.0m - CCE 116.0m)
Interest Coverage Ratio = -0.79 (Ebit TTM -76.0m / Interest Expense TTM 96.0m)
EV/FCF = 60.99x (Enterprise Value 3.23b / FCF TTM 53.0m)
FCF Yield = 1.64% (FCF TTM 53.0m / Enterprise Value 3.23b)
FCF Margin = 1.56% (FCF TTM 53.0m / Revenue TTM 3.40b)
Net Margin = -4.14% (Net Income TTM -141.0m / Revenue TTM 3.40b)
Gross Margin = 16.16% ((Revenue TTM 3.40b - Cost of Revenue TTM 2.85b) / Revenue TTM)
Gross Margin QoQ = 16.31% (prev 7.09%)
Tobins Q-Ratio = 0.82 (Enterprise Value 3.23b / Total Assets 3.93b)
Interest Expense / Debt = 11.23% (Interest Expense 96.0m / Debt 855.0m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -60.0m (EBIT -76.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 2.42 (Total Current Assets 2.25b / Total Current Liabilities 929.0m)
Debt / Equity = 0.40 (Debt 855.0m / totalStockholderEquity, last quarter 2.14b)
Debt / EBITDA = -61.58 (negative EBITDA) (Net Debt 739.0m / EBITDA -12.0m)
Debt / FCF = 13.94 (Net Debt 739.0m / FCF TTM 53.0m)
Total Stockholder Equity = 1.68b (last 4 quarters mean from totalStockholderEquity)
RoA = -5.06% (Net Income -141.0m / Total Assets 3.93b)
RoE = -8.39% (Net Income TTM -141.0m / Total Stockholder Equity 1.68b)
RoCE = -3.38% (EBIT -76.0m / Capital Employed (Equity 1.68b + L.T.Debt 571.0m))
RoIC = -2.08% (negative operating profit) (NOPAT -60.0m / Invested Capital 2.88b)
WACC = 8.85% (E(2.49b)/V(3.35b) * Re(8.84%) + D(855.0m)/V(3.35b) * Rd(11.23%) * (1-Tc(0.21)))
Discount Rate = 8.84% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 0.0 | Cagr: 27.86%
[DCF] Terminal Value 71.25% ; FCFF base≈106.6m ; Y1≈93.5m ; Y5≈75.5m
[DCF] Fair Price = 2.09 (EV 1.12b - Net Debt 739.0m = Equity 381.3m / Shares 182.5m; r=8.85% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -63.08 | EPS CAGR: -7.03% | SUE: -1.09 | # QB: -1
Revenue Correlation: 73.40 | Revenue CAGR: 9.87% | SUE: 4.0 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.09 | Chg30d=-43.44% | Revisions=-33% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.11 | Chg30d=-47.52% | Revisions=-43% | Analysts=3
EPS current Year (2026-12-31): EPS=0.33 | Chg30d=-47.10% | Revisions=-43% | GrowthEPS=-61.2% | GrowthRev=+77.5%
EPS next Year (2027-12-31): EPS=0.94 | Chg30d=-7.52% | Revisions=-14% | GrowthEPS=+183.0% | GrowthRev=+6.4%
[Analyst] Revisions Ratio: -43%