DNOW Inc. DNOW

IndustrialsMachinery, Tools, Heavy Vehicles, Trains & ShipsUnited States of America

Last close 16.31 USD on Nov 1, 2026, +23.1% year to date

Quant rating

Quant rating C Rank 202 of 486 in Industrials

Growth A 62 of 486
Valuation C 291 of 486
Quality D 351 of 486
Revisions B 165 of 486
Momentum B 101 of 486

Wall Street consensus Buy (1.67)Average target 18.84 USD +15.5%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 2.9B
Enterprise value: 3.3B
52-week range: 10.94 – 17.24
3-year range: 9.53 – 17.59
Dividend yield: –
Beta (5 years): 0.96
Shares outstanding: 181M
Next earnings: Nov 5, 2026

About the company

DNOW Inc. is an energy and industrial solutions provider. The Company distributes pipes, valves, fittings (PVF), gas products, pumps, fabricated process and production equipment and a range of Maintenance, Repair, and Operations (MRO) consumables and related products. It operates across sectors of the energy value chain and industrial end-markets, including Upstream, Midstream, Gas Utilities and Downstream and Industrial. Upstream is engaged in exploration, production, and extraction of oil and gas, as well as the use and disposal of produced water. Midstream offers transmission and gathering infrastructure for processing and transmission of oil, gas, or water. Gas Utilities provide storage and distribution of natural gas. Downstream and Industrial includes crude oil refining, petrochemical and chemical processing, general industrials, pharmaceutical, mining, water/wastewater treatment, data centers, liquefied natural gas (LNG) terminals and renewable natural gas (RNG) facilities.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	2,820	2,373	2,321	2,136	1,632	–
Revenue growth	18.8%	2.2%	8.7%	30.9%	0.8%	11.7%
EPS (basic, normalized)	0.86	0.91	0.97	0.30	0.05	–
EPS growth	−5.5%	−6.2%	223.3%	500.0%	–	–
Gross margin	21.7%	22.8%	23.1%	23.7%	21.9%	22.6%
Net margin	−3.2%	3.4%	10.5%	6.0%	0.3%	3.4%
ROE	−5.3%	7.4%	26.0%	16.5%	0.7%	9.1%

Balance sheet, last quarter
Cash & short-term investments (mil)	114
Current ratio	2.14x
Long-term debt (mil)	474
Net debt (mil)	365
Total equity (mil)	2,093
Net debt / equity	0.17x
Net debt / EBITDA	1.75x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	2,820	+18.8%	1.2x	209	+26.1%	15.9x	0.86	−5.5%	19.0x
2026	5,065	+79.6%	0.7x	224	+7.3%	14.8x	0.35	−59.7%	47.0x
2027	5,422	+7.1%	0.6x	341	+52.0%	9.7x	0.83	+138.9%	19.7x
2028	5,690	+4.9%	0.6x	394	+15.6%	8.4x	1.07	+28.8%	15.3x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	5,065	0.0%	+1.8%	+9.9%	0.35	0.0%	−0.3%	−47.1%
2027	5,422	0.0%	+2.1%	+8.6%	0.83	0.0%	−4.8%	−18.0%
2028	5,690	0.0%	+3.4%	+8.8%	1.07	+0.6%	+5.1%	−11.1%

Earnings surprises EPS beat in 2 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	563	633	606	571	599	628	634	959	1,183	1,307
Sales mean (mil)	569	632	615	554	587	613	637	962	1,083	1,266
Surprise	−1.1%	+0.1%	−1.5%	+3.1%	+2.0%	+2.5%	−0.5%	−0.3%	+9.2%	+3.3%
EPS reported	0.21	0.25	0.21	0.25	0.22	0.27	0.26	0.15	0.01	0.12
EPS mean	0.23	0.24	0.21	0.14	0.17	0.21	0.23	0.15	0.08	0.10
Surprise	−8.7%	+4.2%	0.0%	+85.2%	+26.9%	+26.6%	+11.4%	0.0%	−87.5%	+24.0%

Peer comparison Machinery, Tools, Heavy Vehicles, Trains & Ships

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
DNOW DNOW Inc.	2.9B	1.75x	−3.2%	1.41x	47.0x	19.7x	14.8x	9.7x
GWW WW Grainger Inc	64.0B	0.75x	9.5%	15.50x	29.3x	26.6x	19.5x	18.2x
FAST Fastenal Company	59.6B	−0.06x	15.3%	14.35x	40.7x	36.8x	28.1x	25.4x
WCC WESCO International, Inc.	16.7B	3.36x	2.7%	3.07x	19.2x	16.1x	11.4x	10.2x
WSO Watsco, Inc.	12.6B	−0.19x	6.4%	4.17x	26.1x	23.4x	16.8x	14.9x
AIT Applied Industrial Technologies, Inc.	10.7B	0.28x	8.3%	5.71x	24.3x	22.2x	16.4x	15.2x
Mean		0.98x	6.5%	7.37x	31.1x	24.1x	17.8x	15.6x
Median		0.51x	7.4%	4.94x	27.7x	22.8x	16.6x	15.1x

Technical analysis

1M+1.1%
3M+17.8%
1Y+10.8%
3Y+50.3%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, DNOW Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	2,820	2,373	2,321	2,136	1,632	1,619
Cost of revenue	2,207	1,833	1,786	1,630	1,275	1,327
Gross profit	613	540	535	506	357	292
Selling, general & administrative expenses	483	399	389	361	336	385
Research & development	–	–	–	–	–	–
Depreciation/amortization	12.0	10.0	6.0	4.0	5.0	6.0
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	211	18.0	0	10.0	7.0	321
Other operating expenses	0	0	0	0	0	0
Operating income	−93.0	113	140	131	9.0	−420
Net interest income (expense)	–	–	–	8.0	–	−10.0
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−7.0	1.0	−2.0	0	3.0	0
Net income before taxes	−100	114	138	139	12.0	−430
Provision for taxes	−12.0	32.0	−110	10.0	7.0	−3.0
Minority interest	−1.0	−1.0	−1.0	−1.0	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	−89.0	81.0	247	128	5.0	−427
Extraordinary items	–	–	–	–	–	–
Net income	−89.0	81.0	247	128	5.0	−427
EBIT, normalized	118	140	140	141	16.0	−99.0
EBITDA, normalized	170	184	166	160	39.0	−71.0
Basic EPS, normalized	0.86	0.91	0.97	0.30	0.05	–

Balance sheet in millions of USD, fiscal years

Balance sheet, DNOW Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	164	256	299	212	313	387
Receivables	874	388	384	398	304	198
Total inventory	1,192	352	366	381	250	262
Prepaid expenses	48.0	32.0	19.0	26.0	16.0	14.0
Other current assets	0	0	0	0	0	0
Total current assets	2,278	1,028	1,068	1,017	883	861
Property, plant & equipment	424	197	171	155	138	139
Goodwill	617	230	139	116	67.0	0
Intangibles	565	65.0	28.0	25.0	9.0	0
Long-term investments	–	–	–	–	–	–
Note receivable	–	–	–	–	–	–
Other long-term assets	40.0	101	123	7.0	7.0	8.0
Total assets	3,924	1,621	1,529	1,320	1,104	1,008
Liabilities
Accounts payable	653	300	288	304	235	172
Payable/accrued	–	–	–	–	–	–
Accrued expenses	250	99.0	92.0	93.0	85.0	76.0
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	12.0	10.0	7.0	4.0	4.0	5.0
Other current liabilities	59.0	33.0	31.0	38.0	45.0	19.0
Total current liabilities	974	442	418	439	369	272
Long-term debt	428	15.0	15.0	7.0	3.0	6.0
Minority interest	5.0	4.0	3.0	2.0	–	–
Other liabilities	284	36.0	33.0	30.0	20.0	31.0
Total liabilities	1,691	497	469	478	392	309
Shareholders' equity
Preferred stock	–	0	–	0	–	–
Common stock	2.0	1.0	1.0	1.0	1.0	1.0
Additional paid-in capital	3,193	2,023	2,032	2,066	2,061	2,051
Retained earnings (accumulated deficit)	−836	−747	−828	−1,075	−1,203	−1,208
Treasury stock	–	–	–	–	–	–
Other equity	−126	−153	−145	−150	−147	−145
Total equity	2,233	1,124	1,060	842	712	699
Total liabilities & shareholders' equity	3,924	1,621	1,529	1,320	1,104	1,008

Cash flow statement in millions of USD, fiscal years

Cash flow statement, DNOW Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	−88.0	82.0	248	129	5.0	−427
Depreciation, depletion & amortization	52.0	34.0	26.0	19.0	23.0	28.0
Deferred taxes	−16.0	25.0	−119	–	–	–
Non-cash items	92.0	38.0	42.0	32.0	35.0	418
Changes in working capital	115	119	−9.0	−180	−33.0	170
Cash from operations	155	298	188	0	30.0	189
Investing activities
Capital expenditures	−21.0	−9.0	−17.0	−9.0	−5.0	−8.0
Other investing cash flows	−569	−295	−31.0	−78.0	−91.0	30.0
Cash from investing	−590	−304	−48.0	−87.0	−96.0	22.0
Financing activities
Financing cash flow items	−35.0	–	–	–	–	−8.0
Cash dividends paid	–	–	–	–	–	–
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	374	−33.0	−55.0	−10.0	−6.0	0
Cash from financing	339	−33.0	−55.0	−10.0	−6.0	−8.0
Foreign exchange effects	4.0	−4.0	2.0	−4.0	−2.0	1.0
Net change in cash	−92.0	−43.0	87.0	−101	−74.0	204
Free cash flow	134	289	171	−9.0	25.0	181

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.