Dnow Inc.

Industrials
Metal Fabrications
www.dnow.com

Earnings Score
Moat Score

Market Cap $1.56B
PE 8
Debt $NaN
Cash $261.00M
EV $NaN
FCF $273.00M

Earnings

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Sales & Net Margins

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Earnings	$202.00M
EBIT	$116.00M
ROE	18%
ROA	7%
FCF	$273.00M
Equity	$1.12B
Growth Stability	1
PE	7.73
PEG	0.23
PB	1.4
P/FCF	5.72
P/S	0.66
Price/Cash	0.17
Net Margins	3%
Gross Margins	23%
Op. Margins	5%
Earnings CAGR	7%
Sales Growth YoY	3%
Sales Growth QoQ	-4%
Sales CAGR	-3%
FCF CAGR	-4%
Equity CAGR	-7%
Earnings Stability	0.12
Earnings Growth YoY	-62%

Earnings Growth QoQ	-43%
Earnings CAGR 5Y	33%
Sales CAGR 5Y	3%
FCF CAGR 5Y	-4%
Equity CAGR 5Y	7%
Earnings CAGR 3Y	13%
Sales CAGR 3Y	13%
FCF CAGR 3Y	224%
Equity CAGR 3Y	19%
Market Cap	$1.56B
Revenue	$2.36B
Assets	$1.59B
Cash	$261.00M
Shares Outstanding	106.02M
Earnings Score	8%
Moat Score	83%
Working Capital	641M
Current Ratio	2.54
Gross Profit	$532.00M
Shares Growth 3y	-2%
Equity Growth QoQ	2%
Equity Growth YoY	23%

Assets & ROA

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Stockholders Equity & ROE

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NOW Incorp is an independent distributor of oil and gas equipment and services. The company operates through three geographical segments namely the United States, Canada, and International. Geographically, it generates maximum revenue from International market. product and service offerings include maintenance, repair and operating supplies, pipes, valves, safety supplies, and other parts to support customers. NOW's products attract customers from upstream drilling and completion, exploration and production, and midstream infrastructure development to downstream refining.

SEC Filings

Direct access to Dnow Inc. (DNOW) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Dnow Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Dnow Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 7%

Stability 12%

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Dnow Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Dnow Inc..

Years

Calculation mode

= $2B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$273M	$261M	$250M	$239M	$229M	$219M	$209M	$200M	$191M	$183M	$175M	$1.8B
DCF		$237M	$206M	$180M	$156M	$136M	$118M	$103M	$89M	$78M	$68M	$675M
Value	$2B

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	3%	-17%	-11%	-2%	2%	-3%	-26%	-0%	6%	10%	3%
ROA	-	-28%	-14%	-2%	4%	-5%	-42%	1%	11%	9%	7%
ROE	-	-36%	-20%	-4%	4%	-8%	-61%	-1%	15%	23%	18%

Bad Net Margins (3.16%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0.61	0.47	-1.66	2.13	-	-	-	-	-	-
Debt over Equity	0	0.14	0.09	0.17	0.11	-	-	-	-	-	-
Growth Stability	-	-	-	-	-	-	-	-	-	-	1

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-27%	-30%	26%	18%	-6%	-45%	1%	31%	9%	3%
Earnings YoY growth	-	-533%	-53%	-78%	-198%	-290%	340%	-99%	-3K%	93%	33%
Equity YoY growth	-	-29%	-16%	0%	2%	-6%	-39%	2%	19%	26%	7%
FCF YoY growth	-	354%	-26%	-152%	-152%	242%	-15%	-86%	-136%	-2K%	-4%