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Now
(NYSE:DNOW)
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Rating:58Neutral
Price Target:
$17.00
▲(17.97% Upside)
Action:Reiterated
Date:08/09/26
DNOW scores as moderate overall. The biggest drag is weakened financial performance (swing to losses and margin compression) despite strong revenue growth and still-positive cash flow. Technicals are supportive with a clear uptrend, but momentum is overbought. Earnings-call guidance and operational progress (higher margin targets, record OCF, improved leverage, and accelerating synergies) provide a notable offset, while valuation remains challenged due to the negative P/E and lack of dividend yield data.
Positive Factors
Revenue growth & scale
Sustained double‑digit top‑line growth and rising quarterly scale indicate durable demand across core energy and industrial end markets. Larger revenue base supports operational leverage, broader supplier access, and stronger negotiating power with customers and vendors over the medium term.
Negative Factors
Profitability deterioration
The swing to negative margins and operating losses marks a structural hit to return generation, reducing retained earnings and limiting reinvestment capacity. Unless sustained margin recovery occurs, profitability weakness will pressure ROE, discretionary spend, and long‑term capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & scale
Sustained double‑digit top‑line growth and rising quarterly scale indicate durable demand across core energy and industrial end markets. Larger revenue base supports operational leverage, broader supplier access, and stronger negotiating power with customers and vendors over the medium term.
Read all positive factors
Now Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how much revenue comes from each region, revealing where Now earns most of its sales and how exposed it is to regional oilfield activity, economic cycles, and currency swings. Reveals growth markets and regions where demand or pricing pressure could affect the top line.
Shows how much revenue comes from each region, revealing where Now earns most of its sales and how exposed it is to regional oilfield activity, economic cycles, and currency swings. Reveals growth markets and regions where demand or pricing pressure could affect the top line.
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The Fly
The FlyNow (DNOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.82B
Dividend YieldN/A
Average Volume (3M)2.84M
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth69.84%
EPS Growth-238.39%
CountryUS
Employees5,200
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)-1.07
Shares Outstanding180,785,890
10 Day Avg. Volume2,279,280
30 Day Avg. Volume2,842,831
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.70
Price to Sales (P/S)0.55
P/FCF Ratio11.67
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$18.00Price Target Upside24.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.38
Revenue Forecast (FY)$5.06B
Now Business Overview & Revenue Model
Company Description
Dnow Inc. operates as a key supplier of industrial and downstream energy products for various sectors, including petroleum refining, chemical processing, liquefied natural gas (LNG) terminals, power generation utilities, and diverse industrial man...
How the Company Makes Money
DNOW primarily makes money by selling energy and industrial MRO products and engineered equipment to customers and recognizing revenue when those goods and related services are delivered per contract terms. A major revenue stream is product distri...
Now Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational and financial progress: double-digit sequential revenue growth, a 54% sequential rise in adjusted EBITDA, record quarterly operating cash flow, improved leverage (net debt/EBITDA 1.7x), accelerating synergy realization and active share repurchases. Near-term challenges include integration/ERP-related costs, some inventory and vendor-related margin pressure, downstream timing sensitivity and regional geopolitical delays, plus a GAAP loss driven by tax/LIFO adjustments. Overall, management presented multiple quantifiable improvements and a clear path to continued margin and cash-flow gains while acknowledging manageable near-term headwinds.Positive Updates
Revenue Growth and Scale
Total revenue of $1.3 billion in 2Q26, a sequential increase of $124 million or 10%. U.S. revenue was $1.1 billion, up $124 million or 13% sequentially.
Negative Updates
GAAP Net Loss and Tax Volatility
Net loss attributable to DNOW of $21 million (loss of $0.11 per share) in 2Q26 on a GAAP basis, though adjusted net income was $21 million ($0.12 per share). Quarter produced an unusual effective tax rate of negative 133% due to LIFO and geographic mix adjustments; full-year GAAP tax rate guidance mid- to high-single digits but may vary.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Scale
Total revenue of $1.3 billion in 2Q26, a sequential increase of $124 million or 10%. U.S. revenue was $1.1 billion, up $124 million or 13% sequentially.
Read all positive updates
Company Guidance
DNOW guided to sequential Q3 revenue growth in the low- to mid-single-digit range with adjusted EBITDA margin targeted at 5.0–5.5% (above prior guide), and raised its full‑year 2026 revenue outlook to roughly $5.0–5.1 billion with EBITDA as a percent of revenue to approach ~4.5%. Management also forecast Q3 depreciation & amortization of about $24 million, expects interest expense to decline slightly from Q2's $9 million, a full‑year GAAP effective tax rate in the mid‑ to high‑single digits, and continued modest CapEx (Q2 CapEx was $9 million). The guide is supported by Q2 results of $1.3 billion revenue, $60 million adjusted EBITDA (4.6%), $133 million cash from operations (Q2 record), net debt $360 million (total debt $474 million) and 1.7x trailing leverage, liquidity of $472 million ($114M cash / $358M revolver), Q2 AR $889M (DSO 62, down 7 days), inventory $1.1B (down $131M, turns 4.0x), AP $711M (61 days), working capital ex‑cash 19.4%, expected additional inventory and AR reductions of ~$25–50M each, and accelerated synergy realization (~$30M first‑year exit rate vs. prior $17M, on a path to $70M annualized by year 3).Now Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.08B | 2.82B | 2.37B | 2.32B | 2.14B | 1.63B |
| Gross Profit | 649.00M | 478.00M | 535.00M | 535.00M | 506.00M | 357.00M |
| EBITDA | -159.00M | -48.00M | 153.00M | 164.00M | 160.00M | 39.00M |
| Net Income | -187.00M | -89.00M | 81.00M | 247.00M | 128.00M | 5.00M |
Balance Sheet | ||||||
| Total Assets | 3.82B | 3.92B | 1.62B | 1.53B | 1.32B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 114.00M | 164.00M | 256.00M | 299.00M | 212.00M | 313.00M |
| Total Debt | 631.00M | 585.00M | 42.00M | 41.00M | 38.00M | 32.00M |
| Total Liabilities | 1.72B | 1.69B | 493.00M | 466.00M | 476.00M | 392.00M |
| Stockholders Equity | 2.10B | 2.24B | 1.12B | 1.06B | 842.00M | 711.00M |
Cash Flow | ||||||
| Free Cash Flow | 136.00M | 134.00M | 289.00M | 171.00M | -9.00M | 25.00M |
| Operating Cash Flow | 164.00M | 155.00M | 298.00M | 188.00M | 0.00 | 30.00M |
| Investing Cash Flow | -635.00M | -590.00M | -304.00M | -48.00M | -87.00M | -96.00M |
| Financing Cash Flow | 355.00M | 339.00M | -33.00M | -55.00M | -10.00M | -6.00M |
Now Technical Analysis
Positive
14.41
Price Trends
14.11
Positive
13.44
Positive
13.53
Positive
Market Momentum
0.67
Negative
57.19
Neutral
35.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNOW, the sentiment is Positive. The current price of 14.41 is below the 20-day moving average (MA) of 15.17, above the 50-day MA of 14.11, and above the 200-day MA of 13.53, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 35.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNOW.
Now Risk Analysis
Now disclosed 10 risk factors in its most recent earnings report. Now reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Now Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.04B | 14.10 | 15.28% | 1.64% | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $2.82B | -14.52 | -9.76% | ― | 69.84% | -238.39% | |
57 Neutral | $3.29B | 25.50 | 6.08% | 2.02% | 2.29% | -43.28% | |
52 Neutral | $2.13B | 102.51 | 1.37% | ― | -7.11% | -70.32% | |
46 Neutral | $1.63B | -13.67 | -10.04% | 8.28% | -8.11% | -822.25% |
* Industrials Sector Average
DNOW
Now
15.54
0.52
3.46%
XPRO
Expro Group Holdings
18.41
6.86
59.39%
LBRT
Liberty Energy
19.24
8.82
84.57%
AESI
Atlas Energy Solutions
12.99
1.73
15.36%
FLOC
Flowco Holdings Inc Class A
22.70
7.01
44.70%
Now Corporate Events
Executive/Board ChangesShareholder Meetings
DNOW Shareholders Reelect Board and Ratify Auditor
Positive
May 20, 2026
At its Annual Meeting of Stockholders held on May 20, 2026, DNOW Inc. shareholders re-elected nine directors to the board for one-year terms expiring in 2027, with all nominees receiving strong support and no alternative candidates proposed. Stock...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.