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 -6.89%, its profits have fallen by -58.8%
5
Below par performance in long term as well as near term
- Along with generating -6.89% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to DNOW, Inc. should be less than 10%
- 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.
-5.74%
0.07
44.99%
S&P 500
13.22%
0.64
20.20%
Quality key factors
Factor
Value
Sales Growth (5y)
0.34%
EBIT Growth (5y)
46.82%
EBIT to Interest (avg)
81.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.18
Sales to Capital Employed (avg)
2.24
Tax Ratio
26.96%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
12.69%
ROE (avg)
10.42%
Valuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.37
EV to EBIT
10.08
EV to EBITDA
7.85
EV to Capital Employed
1.45
EV to Sales
0.56
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
14.36%
ROE (Latest)
8.60%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 225 MM
RAW MATERIAL COST(Y)
Fallen by -2.33% (YoY
OPERATING PROFIT(Q)
Highest at USD 49 MM
OPERATING PROFIT MARGIN(Q)
Highest at 7.8 %
PRE-TAX PROFIT(Q)
Highest at USD 39 MM
NET PROFIT(Q)
Highest at USD 30.47 MM
EPS(Q)
Highest at USD 0.24
-7What is not working for the Company
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
Here's what is working for DNOW, Inc.
Operating Cash Flow
Highest at USD 225 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Operating Profit
Highest at USD 49 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 7.8 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 39 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 30.47 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.24
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -2.33% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for DNOW, Inc.
Debtors Turnover Ratio
Lowest at 5.7 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






