Now (DNOW) AI Stock Analysis

• Market Cap: $1.64B
• Dividend Yield: N/A
• Average Volume (3M): 760.01K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.98
• Revenue Growth: 4.74%
• EPS Growth: -65.65%
• Country: US
• Employees: 2,575
• Sector: Energy
• Sector Strength: 68
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.22
• Shares Outstanding: 105,568,170
• 10 Day Avg. Volume: 588,996
• 30 Day Avg. Volume: 760,014
• PEG Ratio: 0.05
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.11
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.74
• Enterprise Value/Ebitda: 1.73
• 1Y Price Target: $16.50
• Price Target Upside: 6.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $16.50 ▲(6.52%Upside)

DNOW's overall stock score is driven by strong financial stability and cash flow management, as well as positive earnings call outcomes that reflect strategic growth and operational improvements. However, moderate valuation metrics and mixed technical indicators suggest caution. The primary strengths lie in financial robustness and strategic initiatives, while challenges include profitability improvement and market momentum.

Now Business Overview & Revenue Model

Company Description

NOW Inc. (DNOW) is a leading provider of energy and industrial products and services. The company operates primarily in the oil and gas sector, offering a comprehensive range of products, including maintenance, repair, and operations (MRO) supplies, as well as a variety of equipment and solutions. DNOW serves a diverse customer base across energy, industrial, and manufacturing sectors, helping clients optimize operations, reduce costs, and improve efficiency.

How the Company Makes Money

NOW Inc. (DNOW) generates revenue through the sale of a wide array of products and services tailored to the energy and industrial sectors. The company's revenue streams primarily consist of the distribution of maintenance, repair, and operations supplies, as well as the sale of specialized equipment and tools used in drilling, production, and other industrial processes. DNOW's earnings are bolstered by its strategic partnerships with leading manufacturers and suppliers, allowing it to offer a broad and competitive product portfolio. Additionally, DNOW leverages its extensive distribution network and industry expertise to provide value-added solutions and services, which further enhance its revenue potential.

Now Financial Statement Overview

Summary

The financial performance of DNOW is solid with a strong balance sheet and excellent cash flow management. The low debt-to-equity ratio and high equity ratio provide financial stability. However, the decrease in profitability, as indicated by declining net profit margins and EBIT margins, is a concern. Overall, while revenue is stable, improving profitability remains a key challenge.

Income Statement

The company's gross profit margin remained stable at approximately 22.5%. The net profit margin decreased to 3.4% from 10.6%, primarily due to a significant drop in net income. Revenue growth was modest at 2.2%. EBIT margin dropped to 4.8% from 6.0%, indicating reduced operational efficiency. The EBITDA margin also decreased to 4.8% from 7.1%. Overall, the income statement shows stable revenue but declining profitability.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.03, indicating minimal leverage risk. Return on Equity (ROE) decreased to 7.2% from 23.3%, reflecting lower profitability. The equity ratio improved to 69.6%, showcasing a strong equity base relative to assets. Overall, the balance sheet is solid with low leverage and high equity stability.

Cash Flow

The company demonstrated strong cash flow with a significant increase in free cash flow to $289 million, up 69% from the previous year. The operating cash flow to net income ratio increased to 3.68, indicating robust cash generation relative to earnings. Free cash flow to net income ratio also improved to 3.57. The cash flow statement reflects excellent cash management and growth in free cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.41B	2.37B	2.32B	2.14B	1.63B	1.62B
	Gross Profit
549.00M	535.00M	535.00M	506.00M	357.00M	292.00M
	EBIT
120.00M	113.00M	140.00M	131.00M	9.00M	194.00M
	EBITDA
114.00M	148.00M	166.00M	170.00M	40.00M	-77.00M
	Net Income Common Stockholders
82.00M	81.00M	247.00M	128.00M	5.00M	-427.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
219.00M	256.00M	299.00M	212.00M	313.00M	387.00M
	Total Assets
1.65B	1.62B	1.53B	1.32B	1.10B	1.01B
	Total Debt
28.00M	42.00M	41.00M	38.00M	17.00M	25.00M
	Net Debt
-191.00M	-214.00M	-258.00M	-174.00M	-296.00M	-362.00M
	Total Liabilities
507.00M	493.00M	466.00M	476.00M	392.00M	309.00M
	Stockholders Equity
1.14B	1.13B	1.06B	842.00M	712.00M	699.00M
Cash Flow		Free Cash Flow
187.00M	289.00M	171.00M	-27.00M	25.00M	181.00M
	Operating Cash Flow
201.00M	298.00M	188.00M	-18.00M	30.00M	189.00M
	Investing Cash Flow
-121.00M	-304.00M	-48.00M	-87.00M	-96.00M	22.00M
	Financing Cash Flow
-46.00M	-33.00M	-55.00M	-10.00M	-6.00M	-8.00M

Now Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.49 is above the 20-day moving average (MA) of 14.79, above the 50-day MA of 15.19, and above the 200-day MA of 14.34, indicating a bullish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 92.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNOW.

Now Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDW	77 Outperform	$2.39B	14.44	16.24%	―	19.34%	31.76%
DNOW	72 Outperform	$1.64B	20.74	7.22%	―	4.74%	-65.65%
LBRT	72 Outperform	$2.22B	9.07	13.18%	2.34%	-7.45%	-44.88%
OII	71 Outperform	$2.15B	11.98	26.17%	―	10.04%	68.14%
WTTR	69 Neutral	$1.10B	26.47	4.51%	3.07%	-4.91%	-46.51%
AESI	65 Neutral	$1.81B	47.67	2.90%	6.83%	77.72%	-75.78%
Sector *	58 Neutral	$7.55B	3.49	-4.45%	10.15%	0.79%	-49.51%

Now Corporate Events

DNOW Inc. Holds Annual Stockholders Meeting

On May 21, 2025, DNOW Inc. held its Annual Meeting of Stockholders where key decisions were made. The stockholders re-elected eight members to the Board of Directors for a one-year term, ratified Ernst & Young LLP as the independent auditors for 2025, and approved the compensation of the company’s named executive officers. These decisions reflect the company’s continued commitment to stable governance and financial oversight.

The most recent analyst rating on (DNOW) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Now stock, see the DNOW Stock Forecast page.