DNOW

DNOW Inc.

$16.21

+3.38% 2026-10-19

IndustrialsS&P 600

1M 3M 6M 1Y 2Y

DNOWSPY

+6.8%

+4.0%

+16.1%

+35.1%

YTD

+22.3%

+15.1%

Grades vs sector

Momentum

46th pct in sector

12-1 return: +5.4%
Percentile within its GICS sector across the S&P 1500.

Growth

99th pct in sector

A+

Revenue growth (YoY): +108.1%
Percentile within its GICS sector across the S&P 1500.

Value

29th pct in sector

D+

Forward E/P: 5.3% · EBITDA/EV: 4.5%
Percentile within its GICS sector across the S&P 1500.

Profitability

3rd pct in sector

Profit margin: -4.6% · Return on equity: -11.6%
Percentile within its GICS sector across the S&P 1500.

Revisions

no data

–

EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Our models

Not held by any of our 3 live models right now.

Momentum Top 15

not ranked (outside this model's universe or screens)

Quality Growth

not ranked (outside this model's universe or screens)

Momentum Blend

not in the current book

Key stats

Market cap$2.9B

P/E (trailing)–

P/E (forward)19.7

52-week range10.94 – 17.26

Revenue growth (YoY, latest qtr)+108.1%

Dividend yield0.00%

Analyst consensusStrong Buy (4)

Mean price target$18.75 (+16%)

Valuation & fundamentals

Bottom line

Leans undervalued

Model read-out from the numbers below, not advice. Score +2 (DCF counts double).

▲DCF (base case)above the price by 227%

•Forward P/E vs sector19.7x vs median 17.1x

▼Piotroski F-score3/9

•Altman Z2.0 (grey)

▲Analyst target+16% (4 analysts)

Discounted cash flow

Bear

$21

+32%

growth 18% · disc. 9.7% · term. 2.0%

Base

$53

+227%

growth 30% · disc. 8.7% · term. 2.5%

Bull

$106

+555%

growth 38% · disc. 7.7% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal

Today's price assumes free cash flow grows about 8% a year for 10 years.

Implied

+8%/yr

FCF, last 3 yrs

n/a

FCF, last 5 yrs

-6%/yr

Revenue, last 3 yrs

+10%/yr

Revenue, last 5 yrs

+12%/yr

Same inputs as the DCF above: trailing free cash flow 0.1B, 8.7% discount rate, 2.5% growth after year 10, net debt and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2025; "n/a" means too little history or a negative starting year.

Edit assumptions · recalculates instantly

Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-06-30). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 0.89 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Industrials

P/E (trailing)

sector median 26.4×

–

Forward P/E

sector median 17.1× · 62nd pct

19.7×
pricier

EV / EBITDA

sector median 14.8×

–

Price / sales

sector median 2.1× · 15th pct

0.7×
cheaper

Price / book

sector median 3.5× · 9th pct

1.4×
cheaper

FCF yield

sector median 4.5% · 51st pct

4.6%
cheaper

Forward EPS $0.82 vs trailing $-1.54. Forward P/E uses analysts' next-12-month estimate.

Quality & financial health

Gross margin

15.8%

Operating margin

-4.6%

FCF margin

3.3%

Net margin

-4.6%

Return on equity

-9.0%

Return on invested capital

-6.0%

Net debt / EBITDA

–

Current ratio

2.1×

Interest cover

–

Cash conversion (OCF/NI)

–

Piotroski F-score 3/9 · last two fiscal years

✗ Positive net income✓ Positive operating cash flow✗ Return on assets improved✓ Cash flow above net income✗ Long-term debt / assets fell✓ Current ratio improved✗ No share dilution✗ Gross margin improved✗ Asset turnover improved

Altman Z-score 2.0 (grey zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target

$19

+16%

Analysts

Strong Buy

Range

$18–$19

low – high

● price · ◆ mean target

Annual history

FY	Revenue	Net income	Free cash flow
2025	$2.8B	$-89.0M	$134.0M
2024	$2.4B	$78.0M	$289.0M
2023	$2.3B	$250.0M	$171.0M
2022	$2.1B	$128.0M	$-9.0M
2021	$1.6B	$5.0M	$25.0M
2020	$1.6B	$-427.0M	$181.0M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +9.7%.

Earnings

Next report: 2026-11-04 · before open · EPS est 0.15

EstimateActual (beat)Actual (miss)

Report	EPS est	Actual	Surprise
2026-08-06	0.09	0.12	+41.2%
2026-05-07	0.06	0.01	-83.3%
2026-02-20	0.14	0.15	+7.1%
2025-11-05	0.23	0.26	+11.4%
2025-08-06	0.21	0.27	+26.6%
2025-05-07	0.17	0.22	+26.9%
2025-02-13	0.13	0.25	+92.3%
2024-11-07	0.21	0.21	–

Quarterly revenue

Quarter	Revenue	YoY
2026-06-30	$1.3B	+108.1%
2026-03-31	$1.2B	–
2025-12-31	$959.0M	–
2025-09-30	$634.0M	–
2025-06-30	$628.0M	–

Analyst actions

Freedom Broker

2026-09-10 · down

Buy → Hold
PT $18

DA Davidson

2026-08-10 · main

Buy → Buy
PT $19

Susquehanna

2026-08-07 · main

Positive → Positive
PT $19

Freedom Broker

2026-06-17 · init

→ Buy
PT $16

DA Davidson

2026-06-16 · init

→ Buy
PT $17

Stifel

2026-02-23 · main

Buy → Buy
PT $16

Insider trades

Chang Raymond W

VP and General Counsel · 2026-08-10

SELL
$740.7K

Chang Raymond W

VP and General Counsel · 2026-08-10

SELL
$553.8K

Cherechinsky David A

Director, President and CEO · 2026-08-10

SELL
$969.2K

Cherechinsky David A

Director, President and CEO · 2026-08-10

SELL
$3.3M

Johnson Mark B

See Remarks · 2026-08-10

SELL
$369.1K

Johnson Mark B

See Remarks · 2026-08-10

SELL
$842.5K

Johnson Mark B

See Remarks · 2026-08-10

SELL
$682.9K

News

DNOW (DNOW) Heads To Investor Conference, Is It Still 17% Below Fair Value?

Simply Wall St. · Sep 22

Nordson (NDSN) Down 6.9% Since Last Earnings Report: Can It Rebound?

Zacks · Sep 18

Is the Options Market Predicting a Spike in DNOW Stock?

Zacks · Sep 15

DNOW Targets $70M in MRC Synergies as Data Centers Fuel Growth

MarketBeat · Aug 21

Century Aluminum Q2 Earnings Lag Estimates, Sales Rise Y/Y

Zacks · Aug 13

DNOW (DNOW) Q2 2026 Earnings Call Transcript

Motley Fool · Aug 13

Centuri Names Kelly Youngblood as CFO

MT Newswires · Aug 12

Centuri Announces Executive Leadership Changes

Business Wire · Aug 12

Stats refreshed 2026-10-19 17:46:55 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

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Coteau Systematic StrategiesSystematic equity research and model portfolios.
Coteau Systematic Strategies publishes research, model portfolios and tools. It does not manage money or offer investment advice. Model results are hypothetical. Data: Yahoo Finance (delayed), SEC EDGAR.

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