DNOW Industrials

DNOW Inc.

$16.10+1.90%

Price as of close on Nov 3, 2026 · Financials updated Oct 8, 2026

Basics

Sector: Industrials
Industry: Industrial Distribution
Country: United States
Market cap: 2.9B USD
Enterprise value: 3.2B USD
Full-time employees: 5,100

Overall health

Strength: growing faster than most peersgrowing faster than peers
Drawback: less profitable than most peersless profitable than peers
Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: its share price swings more than most peers’ (beta 0.89 vs a peer median of 0.64), though less than the overall marketbigger price swings (beta 0.89 vs peers 0.64)
About average: risk (debt, liquidity and share-price swings)risk

Ranks #1,494 of 2,308 industrials companies (bottom 36%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 64% from December 2022 to July 2026.
DNOW had 64% more shares at July 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.DNOW had 64% more shares at July 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.
Stock pay is large next to buybacks. Stock-based pay expense $57M vs $110M spent repurchasing shares over the 3 fiscal years to 2025.
Over three fiscal years DNOW recorded $57M of stock-based pay expense and spent $110M repurchasing shares (repurchases can include shares withheld to cover employees' taxes).Over three fiscal years DNOW recorded $57M of stock-based pay expense and spent $110M repurchasing shares.
Valuation signals disagree. Cheaper than 58% of peers on free cash flow, but only 0% on earnings.
Relative to its free cash flow, DNOW looks cheaper than 58% of peers; relative to its earnings, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.
Growing fast, still losing money. Revenue grew faster than 95% of peers, at an operating loss.
Revenue grew faster than 95% of peers, but the business runs at an operating loss (margin -4.6%).

StockQuotient Score

44/ 100

Oct 5 44 → Nov 4 44

Valuation

Is the price right?

17/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ Earnings yield
▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield-3.4%

SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price30% base weight · Z-score -1.28Sector median: 0.0377 · MAD: 0.0294

EBITDA yield-3.4%

SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price50% base weight · Z-score -1.64Sector median: 0.0695 · MAD: 0.0425

Free cash flow yield4.7%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 0.26Sector median: 0.0370 · MAD: 0.0370

Other data (not scored)

Book yield71.9%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.5027 · MAD: 0.2823

Growth

Is it growing?

89/100

Strong

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 19.9%

Why

Stronger than most peers on:

▲ Revenue growth
▲ 3-yr revenue

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growthUnavailable

The loss per share widened33% base weight · Z-score -1.31Sector median: 0.0709 · MAD: 0.2481

3-year revenue growth21.0%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 2.69Sector median: 0.0421 · MAD: 0.0625

Revenue growth69.8%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score 4.55Sector median: 0.0439 · MAD: 0.0766

Profitability

Does it earn well?

9/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ ROA
▼ ROIC
▼ Operating margin

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin-4.6%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -2.43Sector median: 0.0773 · MAD: 0.0507

Return on assets-2.6%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -2.38Sector median: 0.0311 · MAD: 0.0241

Return on invested capital-6.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -2.37Sector median: 0.0715 · MAD: 0.0558

Other data (not scored)

Gross margin15.8%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.2573 · MAD: 0.1038

Return on equity-4.8%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0802 · MAD: 0.0639

Risk

Debt, liquidity, price swings

Moderate

Moderate relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Safety percentile 59 → 60

Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Mixed versus peers:

▲ Current ratio
▲ Debt / equity
▼ Beta

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.89

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -0.91Sector median: 0.6440 · MAD: 0.2745

Current ratio2.14×

SEC filings · latest balance sheetReported value33% base weight · Z-score 0.97Sector median: 1.6180 · MAD: 0.5360

Debt / equity0.23×

SEC filings · latest balance sheetReported value33% base weight · Z-score 0.52Sector median: 0.4019 · MAD: 0.3378

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about DNOW

Is DNOW getting weaker?: Its latest SEC filing (Aug 6, 2026) showed no major changes. Its overall score is unchanged at 44/100 since Oct 28, 2026.
How is DNOW valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 17/100 against 2,459 industrials peers. Earnings yield -3.4% vs a peer median of 3.8% (weaker than 100% of peers).Earnings yield -3.4% vs peers 3.8% (weaker than 100% of peers).
Is DNOW growing?: Yes, faster than most of its peers. Growth scores 89/100 against 2,459 industrials peers. Revenue growth 69.8% vs a peer median of 4.4% (stronger than 95% of peers).Revenue growth 69.8% vs peers 4.4% (stronger than 95% of peers).
How profitable is DNOW?: Less profitable than most of its peers. Profitability scores 9/100 against 2,459 industrials peers. Return on assets -2.6% vs a peer median of 3.1% (weaker than 91% of peers).Return on assets -2.6% vs peers 3.1% (weaker than 91% of peers).
How risky is DNOW?: Moderate risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Current ratio 2.14× vs a peer median of 1.62× (stronger than 69% of peers).Current ratio 2.14× vs peers 1.62× (stronger than 69% of peers). Beta 0.89 vs a peer median of 0.64 (weaker than 68% of peers).Beta 0.89 vs peers 0.64 (weaker than 68% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 6, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

Worth watching: DNOW is in the bottom fifth of its sector on profitability. From 2021 to 2025, 63% of companies in that position posted a loss over the following year, against 4% for the top fifth.

	Previous quarter	Latest quarter	Change
Revenue (12 months)	3.4B USD	4.1B USD	+19.9%
Net income (12 months)	−65.0M USD	−100.0M USD	+53.8%
Operating margin	-5.1%	-4.6%	+0.4 pts
Free cash flow (12 months)	53.0M USD	136.0M USD	+156.6%
Debt	571.0M USD	474.0M USD	−17.0%
Cash	116.0M USD	114.0M USD	−1.7%
Shares outstanding	182.5M	180.8M	−1.0%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Sector: Industrials · 318 companies

Valuations in Industrials are near the top of their range since 2016.

85% of months since 2016 were valued lower than now.
41% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +20% and earnings +14% (medians): prices and earnings moved broadly together.
Median price-to-sales is −24% vs the whole market, against a usual −31%.

2016Shaded: most expensive fifth of its range2026

Shown for Industrials: too few Industrial Distribution companies have a long enough history of their own.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	—	—	23.2%	22.4%	17.0%	▼ 5.4 pts
Operating margin	0.6%	6.1%	6.2%	4.6%	-3.3%	▼ 7.9 pts
Net margin	0.3%	6.0%	10.8%	3.3%	-3.2%	▼ 6.4 pts
Return on assets (ROA)	0.5%	9.7%	16.3%	4.8%	-2.3%	▼ 7.1 pts
Return on equity (ROE)	0.7%	15.2%	23.6%	6.9%	-4.0%	▼ 11 pts
Free cash flow margin	1.5%	-0.4%	7.4%	12.2%	4.8%	▼ 7.4 pts
Current ratio	2.39×	2.32×	2.56×	2.33×	2.34×	▲ 0.6%
Quick ratio	1.72×	1.45×	1.68×	1.53×	1.11×	▼ 27%
Debt to equity	—	—	—	0.00×	0.18×	—

DNOW price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: growing faster than most peersgrowing faster than peers

Drawback: less profitable than most peersless profitable than peers

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: its share price swings more than most peers’ (beta 0.89 vs a peer median of 0.64), though less than the overall marketbigger price swings (beta 0.89 vs peers 0.64)

About average: risk (debt, liquidity and share-price swings)risk

Ranks #1,494 of 2,308 industrials companies (bottom 36%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 64% from December 2022 to July 2026.

DNOW had 64% more shares at July 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.DNOW had 64% more shares at July 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

Stock pay is large next to buybacks. Stock-based pay expense $57M vs $110M spent repurchasing shares over the 3 fiscal years to 2025.

Over three fiscal years DNOW recorded $57M of stock-based pay expense and spent $110M repurchasing shares (repurchases can include shares withheld to cover employees' taxes).Over three fiscal years DNOW recorded $57M of stock-based pay expense and spent $110M repurchasing shares.

Valuation signals disagree. Cheaper than 58% of peers on free cash flow, but only 0% on earnings.

Relative to its free cash flow, DNOW looks cheaper than 58% of peers; relative to its earnings, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.

Growing fast, still losing money. Revenue grew faster than 95% of peers, at an operating loss.

Revenue grew faster than 95% of peers, but the business runs at an operating loss (margin -4.6%).

Questions investors ask about DNOW

Is DNOW getting weaker?

Its latest SEC filing (Aug 6, 2026) showed no major changes. Its overall score is unchanged at 44/100 since Oct 28, 2026.

How is DNOW valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 17/100 against 2,459 industrials peers. Earnings yield -3.4% vs a peer median of 3.8% (weaker than 100% of peers).Earnings yield -3.4% vs peers 3.8% (weaker than 100% of peers).

Is DNOW growing?

Yes, faster than most of its peers. Growth scores 89/100 against 2,459 industrials peers. Revenue growth 69.8% vs a peer median of 4.4% (stronger than 95% of peers).Revenue growth 69.8% vs peers 4.4% (stronger than 95% of peers).

How profitable is DNOW?

Less profitable than most of its peers. Profitability scores 9/100 against 2,459 industrials peers. Return on assets -2.6% vs a peer median of 3.1% (weaker than 91% of peers).Return on assets -2.6% vs peers 3.1% (weaker than 91% of peers).

How risky is DNOW?

Moderate risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Current ratio 2.14× vs a peer median of 1.62× (stronger than 69% of peers).Current ratio 2.14× vs peers 1.62× (stronger than 69% of peers). Beta 0.89 vs a peer median of 0.64 (weaker than 68% of peers).Beta 0.89 vs peers 0.64 (weaker than 68% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

3.4B USD

4.1B USD

+19.9%

Net income (12 months)

−65.0M USD

−100.0M USD

+53.8%

Operating margin

-5.1%

-4.6%

+0.4 pts

Free cash flow (12 months)

53.0M USD

136.0M USD

+156.6%

Debt

571.0M USD

474.0M USD

−17.0%

Cash

116.0M USD

114.0M USD

−1.7%

Shares outstanding

182.5M

180.8M

−1.0%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

—

23.2%

22.4%

17.0%

▼ 5.4 pts

Operating margin

0.6%

6.1%

6.2%

4.6%

-3.3%

▼ 7.9 pts

Net margin

0.3%

6.0%

10.8%

3.3%

-3.2%

▼ 6.4 pts

Return on assets (ROA)

0.5%

9.7%

16.3%

4.8%

-2.3%

▼ 7.1 pts

Return on equity (ROE)

0.7%

15.2%

23.6%

6.9%

-4.0%

▼ 11 pts

Free cash flow margin

1.5%

-0.4%

7.4%

12.2%

4.8%

▼ 7.4 pts

Current ratio

2.39×

2.32×

2.56×

2.33×

2.34×

▲ 0.6%

Quick ratio

1.72×

1.45×

1.68×

1.53×

1.11×

▼ 27%

Debt to equity

—

0.00×

0.18×

—