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DNOW, Inc.

  • Market Cap: Small Cap
  • Industry: Trading & Distributors
  • ISIN: US67011P1003
  • NYSE: DNOW
USD
15.56
-0.01 (-0.06%)

Sep 22

NYS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Sunoco LP
MSC Industrial Direct Co., Inc.
World Kinect Corp.
Core & Main, Inc.
UGI Corp.
Boise Cascade Co.
DNOW, Inc.
GMS, Inc.
Hillman Solutions Corp.
Beacon Roofing Supply, Inc.
Veritiv Corp.

Why is DNOW, Inc. ?

1
Company has a low Debt to Equity ratio (avg) at times
2
Healthy long term growth as Operating profit has grown by an annual rate 46.82%
3
Flat results in Jun 25
  • NET PROFIT(9M) At USD 79.07 MM has Grown at -59.76%
  • ROCE(HY) Lowest at 7.29%
  • DEBTORS TURNOVER RATIO(HY) Lowest at 5.7 times
4
With ROE of 8.60%, it has a fair valuation with a 1.37 Price to Book Value
  • The stock is trading at a discount compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of -4.48%, its profits have fallen by -58.8%
5
Below par performance in long term as well as near term
  • Along with generating -4.48% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to DNOW, Inc. should be less than 10%
  2. Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is DNOW, Inc. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
DNOW, Inc.
0.91%
0.08
44.95%
S&P 500
15.76%
0.70
20.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
11.74%
EBIT Growth (5y)
15.14%
EBIT to Interest (avg)
81.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
2.03
Tax Ratio
26.96%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
12.69%
ROE (avg)
10.42%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.02
EV to EBIT
1293.37
EV to EBITDA
47.90
EV to Capital Employed
1.02
EV to Sales
0.92
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
0.08%
ROE (Latest)
-0.09%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company
NET SALES(Q)

Highest at USD 1,307 MM

PRE-TAX PROFIT(Q)

At USD 1 MM has Grown at 104.3%

-17What is not working for the Company
NET PROFIT(HY)

At USD -50 MM has Grown at -192.99%

OPERATING CASH FLOW(Y)

Lowest at USD 164 MM

ROCE(HY)

Lowest at -11.57%

RAW MATERIAL COST(Y)

Grown by 9.98% (YoY

CASH AND EQV(HY)

Lowest at USD 230 MM

DEBT-EQUITY RATIO (HY)

Highest at 24.7 %

Here's what is working for DNOW, Inc.

Net Sales
Highest at USD 1,307 MM and Grown
In each period in the last five periods
MOJO Watch
Near term sales trend is very positive

Net Sales (USD MM)

Net Sales
At USD 1,307 MM has Grown at 53.58%
over average net sales of the previous four periods of USD 851 MM
MOJO Watch
Near term sales trend is very positive

Net Sales (USD MM)

Pre-Tax Profit
At USD 1 MM has Grown at 104.3%
over average net sales of the previous four periods of USD -23.25 MM
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Here's what is not working for DNOW, Inc.

Net Profit
At USD -50 MM has Grown at -192.99%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow
Lowest at USD 164 MM
in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv
Lowest at USD 230 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio
Highest at 24.7 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost
Grown by 9.98% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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