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DNOW

NEUTRAL
$12.71 Live
DNOW Inc. · NYSE
Target $16.0 (+25.9%)
$10.94 52W Range $17.26

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Apr 26, 2026
Market cap
$2.36B
P/E
N/A
ROE
-5.2%
Profit margin
-3.2%
Debt/Equity
0.27
Dividend yield
N/A

AI Analysis

AI-powered fundamental assessment

Confidence
80%
DNOW presents a contradictory profile characterized by a very weak Piotroski F-Score of 2/9, indicating deteriorating fundamental health, despite a strong balance sheet with low debt (D/E 0.27) and high liquidity (Current Ratio 2.34). While revenue growth is explosive at 68% YoY, this has not translated to the bottom line, as evidenced by a -40% YoY decline in EPS and negative profit margins. The stock is trading near book value (P/B 1.06) and is viewed as a 'Strong Buy' by analysts, but the bearish technical trend and poor deterministic health scores suggest significant execution risk.

Key Strengths

Exceptional YoY revenue growth of 68%
Strong liquidity position with a Current Ratio of 2.34
Low leverage with a Debt/Equity ratio of 0.27
Attractive valuation relative to sales (P/S 0.84) and book value (P/B 1.06)
Consistent history of beating earnings estimates over the last 25 quarters

Key Risks

Severe fundamental weakness indicated by a Piotroski F-Score of 2/9
Negative net profit margins (-3.16%) despite massive revenue growth
Significant divergence between revenue growth (+68%) and EPS growth (-40%)
Strongly bearish technical trend (0/100 score)
Negative 1-year price performance (-20.5%)
AI Fair Value Estimate
Based on comprehensive analysis
$14.35
+12.9% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
37
Weak
Value
75
Future
50
Past
40
Health
20
Dividend
0
AI Verdict
Speculative Value Trap Risk
Key drivers: Piotroski F-Score, Revenue vs EPS Divergence, Low Debt/Equity, P/B Ratio
Confidence
85%
Value
75/100

Trading at a discount to assets and sales, but lacks earnings quality.

Positives
  • P/S ratio below 1.0
  • P/B ratio near 1.0
  • Forward P/E of 12.46 is reasonable for the sector
Watchpoints
  • Lack of positive current earnings to support a Graham Number
Future
50/100

High growth is currently inefficient and not scaling into profits.

Positives
  • Massive top-line expansion (68% YoY)
Watchpoints
  • Earnings growth is trending sharply downward (-40% YoY)
  • Operating margins are razor-thin (1.15%)
Past
40/100

Recent momentum is strongly negative despite long-term gains.

Positives
  • Long-term 5Y change is positive (+30.9%)
Watchpoints
  • Poor 1Y and 6M price performance
  • Recent Q/Q EPS growth is negative (-34.8%)
Health
20/100

Balance sheet is solvent, but operational health is failing.

Positives
  • Low Debt/Equity ratio
  • Strong Current Ratio
Watchpoints
  • Piotroski F-Score of 2/9 indicates critical fundamental weakness
  • Negative ROE (-5.23%)
Dividend
0/100

Company is not returning capital to shareholders.

Positives
No standout positives identified.
Watchpoints
  • No dividend paid
  • 0/100 dividend strength score

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$12.71
Analyst Target
$16.0
Upside/Downside
+25.9%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for DNOW and closest competitors.

Updated 2026-04-24
DNO
DNOW Inc.
Primary
5Y
+30.9%
3Y
+20.1%
1Y
-20.5%
6M
-16.8%
1M
+4.9%
1W
+6.4%
HUB
Hub Group, Inc.
Peer
5Y
+18.7%
3Y
-1.6%
1Y
+17.3%
6M
+18.5%
1M
+5.5%
1W
+6.8%
ALG
Alamo Group Inc.
Peer
5Y
+28.5%
3Y
+27.0%
1Y
+4.4%
6M
-12.7%
1M
+10.3%
1W
-0.8%
XMT
Xometry, Inc.
Peer
5Y
-46.4%
3Y
+225.1%
1Y
+97.0%
6M
-6.7%
1M
+13.1%
1W
-0.1%
ATK
Atkore Inc.
Peer
5Y
+58.7%
3Y
-38.1%
1Y
-15.0%
6M
-8.4%
1M
+10.9%
1W
+0.3%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
N/A
Forward P/E
12.46
PEG Ratio
N/A
P/B Ratio
1.06
P/S Ratio
0.84
EV/Revenue
1.0
EV/EBITDA
16.51
Market Cap
$2.36B

Profitability

Profit margins and return metrics

Profit Margin -3.16%
Operating Margin 1.15%
Gross Margin 21.74%
ROE -5.23%
ROA 2.68%

Growth

Revenue and earnings growth rates

Revenue Growth +68.0%
Earnings Growth N/A
Q/Q Revenue Growth +67.95%
Q/Q Earnings Growth N/A

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.27
Low debt
Current Ratio
2.34
Strong
Quick Ratio
1.07
Good
Cash/Share
$0.88

Financial Statement Flow

Interactive flow visualization showing how money moves through the company Q4 2025

Revenue
$1.0B
Gross Margin
5.2%
Op. Margin
-18.4%
Net Margin
-16.8%
Total Assets
$3.9B
Liabilities
$1.7B
Equity
$2.2B
Debt/Equity
0.76x
Operating CF
$0.1B
CapEx
$-0.0B
Free Cash Flow
$0.1B
FCF Yield
92%

Quarterly Earnings History

EPS performance vs analyst estimates

2026-05-06
$N/A
2026-02-20
$0.15
+7.1% surprise
2025-11-05
$0.23
-1.4% surprise
2025-08-06
$0.27
+26.6% surprise

Industrials Sector Comparison

Comparing DNOW against 420 companies in the Industrials sector (34 bullish, 148 neutral, 238 bearish)
Return on Equity (ROE)
-5.23%
This Stock
vs
-22.38%
Sector Avg
-76.6% (Below Avg)
Profit Margin
-3.16%
This Stock
vs
6.48%
Sector Avg
-148.7% (Weaker)
Debt to Equity
0.27
This Stock
vs
2.74
Sector Avg
-90.0% (Less Debt)
Revenue Growth
68.0%
This Stock
vs
78.25%
Sector Avg
-13.1% (Slower)
Current Ratio
2.34
This Stock
vs
3.17
Sector Avg
-26.1% (Weaker)

Similar Companies

Peer comparison within the same industry

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

CHANG RAYMOND W.
General Counsel
Stock Award
2026-02-23
40,242 shares
JOHNSON MARK B
Chief Financial Officer
Stock Award
2026-02-23
61,674 shares
MUNSON KELLY T.
Officer
Stock Award
2026-02-23
28,823 shares
ANDERSON GILLIAN
Officer
Stock Award
2026-02-23
18,726 shares
CHERECHINSKY DAVID A
Chief Executive Officer
Stock Award
2026-02-23
203,603 shares
CHANG RAYMOND W.
General Counsel
Stock Award
2026-02-20
20,999 shares
JOHNSON MARK B
Chief Financial Officer
Stock Award
2026-02-20
20,999 shares
MUNSON KELLY T.
Officer
Stock Award
2026-02-20
15,000 shares
CHERECHINSKY DAVID A
Chief Executive Officer
Stock Award
2026-02-20
89,995 shares
Insider transactions can signal confidence or concerns about company prospects

SEC Filings

Recent regulatory filings from the SEC EDGAR database

DEF 14A
DEF 14A
2026-04-09

DNOW filed a definitive proxy statement on April 9, 2026, providing shareholders with necessary information and voting materials for the upcoming annual meeting.

8-K
8-K
2026-02-27

DNOW reported its fourth-quarter and full-year financial results.

10-K
10-K
2026-02-26

DNOW filed its 10-K annual report on February 26, 2026. Due to the lack of detailed content in the provided excerpts, specific financial highlights and risk factors are unavailable.

8-K
8-K
2026-02-20

DistributionNow Inc. (DNOW) filed an 8-K on February 20, 2026, likely to announce its fourth-quarter and full-year financial results.

8-K/A
8-K/A
2026-01-16

DNOW filed an amendment to a previously submitted Form 8-K.

8-K
8-K
2025-11-06

DistributionNow Inc. (DNOW) announced its third-quarter financial results.

10-Q
10-Q
2025-11-05

DNOW filed its quarterly 10-Q report on November 5, 2025. The provided excerpts do not contain specific financial highlights or detailed risk factors.

8-K
8-K
2025-11-05

DistributionNow Inc. (DNOW) filed an 8-K on November 5, 2025, likely to announce its third-quarter financial results.

8-K
8-K
2025-10-07

DNOW filed an 8-K on October 7, 2025, likely to announce its third-quarter financial results.

8-K
8-K
2025-09-09
8-K
8-K
2025-08-29
10-Q
10-Q
2025-08-06
8-K
8-K
2025-08-06
8-K
8-K
2025-06-26
8-K
8-K
2025-05-23
Data sourced from SEC EDGAR. AI summaries generated automatically.

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
STRONG_BUY
2 analysts
Stifel
2026-02-23
Maintains
Buy Buy
Stifel
2025-11-24
Maintains
Buy Buy
Susquehanna
2025-11-21
up
Neutral Positive

Past News Coverage

Recent headlines mentioning DNOW from our newsroom.

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