Now Inc.
DNOW
Oil & Gas Field Machinery & Equipment
Mkt Cap
$1.53BPE
6.56Debt
-Cash
$188MEV
-FCF
$262MP/E Ratio
6.56Debt
-Cash
$188MEV
-FCF
$262MCharts data: {"Earnings":[{"time":"2014-12-30","value":116000000},{"time":"2015-12-30","value":-502000000},{"time":"2016-12-30","value":-234000000},{"time":"2017-12-30","value":-52000000},{"time":"2018-12-30","value":51000000},{"time":"2019-12-30","value":-97000000},{"time":"2020-12-30","value":-427000000},{"time":"2021-12-30","value":-5000000},{"time":"2022-12-30","value":126000000},{"time":"2023-12-30","value":243000000}],"Sales":[{"time":"2014-12-30","value":4105000000},{"time":"2015-12-30","value":3010000000},{"time":"2016-12-30","value":2107000000},{"time":"2017-12-30","value":2648000000},{"time":"2018-12-30","value":3127000000},{"time":"2019-12-30","value":2951000000},{"time":"2020-12-30","value":1619000000},{"time":"2021-12-30","value":1632000000},{"time":"2022-12-30","value":2136000000},{"time":"2023-12-30","value":2321000000}],"Net Margins":[{"time":"2014-12-30","value":0.02825822168087698},{"time":"2015-12-30","value":-0.16677740863787374},{"time":"2016-12-30","value":-0.11105837683910774},{"time":"2017-12-30","value":-0.019637462235649546},{"time":"2018-12-30","value":0.016309561880396548},{"time":"2019-12-30","value":-0.03287021348695358},{"time":"2020-12-30","value":-0.2637430512662137},{"time":"2021-12-30","value":-0.0030637254901960784},{"time":"2022-12-30","value":0.05898876404494382},{"time":"2023-12-30","value":0.1046962516156829}],"Assets":[{"time":"2014-12-30","value":2596000000},{"time":"2015-12-30","value":1832000000},{"time":"2016-12-30","value":1603000000},{"time":"2017-12-30","value":1749000000},{"time":"2018-12-30","value":1795000000},{"time":"2019-12-30","value":1591000000},{"time":"2020-12-30","value":1008000000},{"time":"2021-12-30","value":1104000000},{"time":"2022-12-30","value":1320000000},{"time":"2023-12-30","value":1529000000}],"Stockholders Equity":[{"time":"2014-12-30","value":1966000000},{"time":"2015-12-30","value":1403000000},{"time":"2016-12-30","value":1183000000},{"time":"2017-12-30","value":1185000000},{"time":"2018-12-30","value":1214000000},{"time":"2019-12-30","value":1144000000},{"time":"2020-12-30","value":699000000},{"time":"2021-12-30","value":712000000},{"time":"2022-12-30","value":844000000},{"time":"2023-12-30","value":1063000000}],"ROE":[{"time":"2014-12-30","value":0.059003051881993895},{"time":"2015-12-30","value":-0.35780470420527444},{"time":"2016-12-30","value":-0.1978021978021978},{"time":"2017-12-30","value":-0.04388185654008439},{"time":"2018-12-30","value":0.042009884678747944},{"time":"2019-12-30","value":-0.08479020979020979},{"time":"2020-12-30","value":-0.6108726752503576},{"time":"2021-12-30","value":-0.007022471910112359},{"time":"2022-12-30","value":0.14928909952606634},{"time":"2023-12-30","value":0.22859830667920977}],"ROA":[{"time":"2014-12-30","value":0.06972265023112481},{"time":"2015-12-30","value":-0.27838427947598254},{"time":"2016-12-30","value":-0.13849033063006863},{"time":"2017-12-30","value":-0.023441966838193252},{"time":"2018-12-30","value":0.040668523676880224},{"time":"2019-12-30","value":-0.05216844751728473},{"time":"2020-12-30","value":-0.4166666666666667},{"time":"2021-12-30","value":0.010869565217391304},{"time":"2022-12-30","value":0.1053030303030303},{"time":"2023-12-30","value":0.09156311314584696}]}
NOW 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. It offers its products under the DistributionNOW and DNOW brand names. The company 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. It 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, the company 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. It serves customers through a network of approximately 170 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. The company was founded in 1862 and is headquartered in Houston, Texas.
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DCF
Discounted Cash Flow Valuation of Now Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $262M | $226.2M | $195.4M | $168.7M | $145.7M | $125.8M | $108.6M | $93.81M | $81.01M | $69.96M | $60.41M | $604.1M |
| DCF | $196.7M | $147.7M | $110.9M | $83.3M | $62.55M | $46.97M | $35.27M | $26.48M | $19.89M | $14.93M | $149.3M | |
| Value | $894.1M | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 35%
Earnings Stability -14%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -17% | -11% | -2% | 1.6% | -3.3% | -26% | -0.31% | 5.9% | 10% | 10% |
| ROA | -28% | -14% | -2.3% | 4.1% | -5.2% | -42% | 1.1% | 11% | 9.2% | 8.4% |
| ROE | -36% | -20% | -4.4% | 4.2% | -8.5% | -61% | -0.7% | 15% | 23% | 22% |
What is the average Net Margin?
The average Net Margin over the past 5 years is -1.99%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +2.79%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is -3.67%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +3.3%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is -4.71%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +6.4%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 0.61 | 0.47 | -1.66 | 2.13 | - | - | - | - | - | - |
| Debt Equity | 0.14 | 0.09 | 0.17 | 0.11 | - | - | - | - | - | - |
| MIN | ||||||||||
| Graham Stability | - | - | - | - | - | - | - | - | - | - |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is -.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -.
What is the Graham’s Stability?
Graham’s Stability measure stands at -.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 1.4% | -5.8% | 13% | 8.7% | 3.5% |
| Net Income | - | 37% | - | 93% | - |
| Stockholders Equity | -1.5% | -2.6% | 15% | 26% | 4.7% |
| FCF | -4.2% | 22% | -1.9% | - | -43% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is -5.79%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +3.52%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +36.65%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -2.62%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +4.72%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +22.5%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -42.84%.