Dnow Inc.

Dnow Inc.

DNOWยทNYSE

$13.23

+2.3%
EnergyOil & Gas Equipment & Services

Dnow Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and industrial manufacturing operations in the United States, Canada, and internationally. The company offers its products under the DistributionNOW and DNOW brand names. It provides consumable maintenance, repair, and operating supplies; pipes, valves, fittings, flanges, gaskets, fasteners, electrical products, instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as applied products and applications, such as artificial lift systems, coatings, and miscellaneous expendable items. The company also offers original equipment manufacturer equipment, including pumps, generator sets, air and gas compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, it provides supply chain and materials management solutions that include procurement, inventory planning and management, and warehouse management, as well as solutions for logistics, point-of-issue technology, project management, business process, and performance metrics reporting services. The company serves customers through a network of approximately 180 locations in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, and other downstream energy processors; and industrial and manufacturing companies. NOW Inc. was founded in 1862 and is headquartered in Houston, Texas.

At a Glance

Live Snapshot
Market Cap$1.56B
EPS-0.7500
P/E Ratio-17.64
Earnings Date08/05/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -17.6).

Valuation inputs: P/E -17.6, earnings yield N/A, momentum +2.3%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -4.0%, ROIC -2.4%).

Profitability stack: net margin -3.2%, ROE -4.0%, ROIC -2.4%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +43.0%, momentum +2.3%, net margin -3.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Dnow Inc. Market vs Earnings Trajectory

DNOW ยท NYSE

Loading price and EPS data...

Dnow Inc.

Dnow Inc. Fair Value Envelope

DNOW ยท NYSE

Our analysis suggests that DNOW has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $13.23, this represents a potential HIDDEN relative to our calculated worth for Dnow Inc..

Intrinsic Value
Current Price: $13.23
3Y-166.0%
5Y-81.0%
10Y-66.0%
3Y+32.0%
5Y+74.0%
10Y+34.0%
3Y-170.0%
5Y-79.0%
10Y-62.0%
3Y-
5Y-18.0%
10Y-34.0%
3Y-1589.0%
5Y-26.0%
10Y-40.0%
3Y+197.0%
5Y+289.0%
10Y+145.0%
Dnow Inc.

Dnow Inc. Profit Bridge

DNOW ยท NYSE
Revenue2.82B
Cost of Goods Sold (2.34B)
Gross Profit478.00M
Operating Expenses (559.00M)
Operating Income-81.00M
Interest Expense (0.00)
Other Income/Expense-19.00M
Pretax Income-100.00M
Income Tax (-12.00M)
Net Income-89.00M
Net Income
-89.00M

Profitability Analysis

Gross Margin

17.0%

Thin margins leave little room for error. Cost management and pricing strategy are critical.

Operating Margin

-2.9%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-3.2%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

16.95%
Gross Profit Margin
-25%
3Y-28.0%
5Y-6.0%
10Y+4.0%
-2.87%
Operating Profit Margin
-160%
3Y-147.0%
5Y-89.0%
10Y-73.0%
-3.16%
Net Profit Margin
-192%
3Y-153.0%
5Y-88.0%
10Y-72.0%
-3.98%
Return on Equity
-155%
3Y-126.0%
5Y-93.0%
10Y-80.0%
-2.27%
Return on Assets
-145%
3Y-123.0%
5Y-95.0%
10Y-84.0%
-2.42%
Return on Invested Capital
-135%
3Y-118.0%
5Y-96.0%
10Y-87.0%
DNOW

Dnow Inc. Cash Conversion Engine

DNOW ยท NYSE
Net Income-89.00M
Depreciation & Amortization0.00
Stock-Based Compensation15.00M
Change in Working Capital115.00M
Others114.00M
Capital Expenditures-21.00M
Free Cash Flow134.00M

Cash Flow Quality Analysis

FCF Conversion Rate

-150.6%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

13.5%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-53.6%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

+$115.00M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.

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Dnow Inc. Funding & Solvency Profile

DNOW ยท NYSE
Cash & Cash Equivalents116.00M
Net Receivables889.00M
Inventory1.19B
Other Current Assets52.00M
Total Current Assets2 B
Property, Plant & Equipment422.00M
Goodwill & Intangible Assets1.22B
Long-Term Investments0.00
Other Non-Current Assets28.00M
Total Non-Current Assets450 M
Total Assets
3.93B

Financial Health Analysis

Current Ratio

2.42x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.83x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

1 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

57% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Dnow Inc. Street Expectations Map

DNOW ยท NYSE

Wall Street analysts project that DNOW stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 17.50, with estimates ranging from a low of 16.00 to a high of 19.00.

Lowest Target
16.00
20.94%
Consensus Target
17.50
32.28%
Highest Target
19.00
43.61%

The consensus 1-year price target stands at 17.50, with estimates ranging from a low of 16.00 to a high of 19.00.

Analyst Consensus Analysis

Upside Potential

+32.3%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

17.1% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Dnow Inc. Insider Positioning

DNOW ยท NYSE

During the last 12 months, there has been no insider trading activity reported for DNOW.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Neutral

No insider trading activity reported. This could indicate blackout periods, lack of conviction, or regulatory restrictions.

Insider Participation

No Activity

No insider trading activity reported from any insiders in the past year.

No Dividend Yield Data

DNOW has not reported any dividend yield values in the available annual periods.

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dnow Dividend History

DNOW
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%