Now Inc (DNOW)
NYSE:DNOW
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Now
(NYSE:DNOW)
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Rating:50Neutral
Price Target:
$13.00
▲(16.91% Upside)
Action:Reiterated
Date:05/21/26
DNOW’s score is held down primarily by deteriorated financial performance (losses and margin compression despite strong revenue growth) and weaker cash-flow momentum. The earnings call adds some support via improvement-focused guidance (EBITDA flow-through, synergy and cash-generation targets), while technicals are neutral-to-modestly positive. Valuation remains a headwind given negative earnings and no dividend yield data.
Positive Factors
Sustained Revenue Growth
Consistent top-line expansion, including a full-quarter contribution from MRC Global, indicates durable demand across energy and industrial end markets. Higher revenue scale supports purchasing leverage, broader product availability, and the ability to grow fee-based supply chain services over the next 2–6 months.
Negative Factors
Profitability & Margin Deterioration
Material margin compression and an operating loss reflect structural mix shifts and integration/headwind pressures. Until gross margins and operating leverage recover, earnings power and return metrics remain impaired, constraining reinvestment capacity and cash-flow conversion over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Consistent top-line expansion, including a full-quarter contribution from MRC Global, indicates durable demand across energy and industrial end markets. Higher revenue scale supports purchasing leverage, broader product availability, and the ability to grow fee-based supply chain services over the next 2–6 months.
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.
Data provided by:
The Fly
The FlyNow (DNOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.41B
Dividend YieldN/A
Average Volume (3M)3.24M
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth41.30%
EPS Growth-195.62%
CountryUS
Employees2,575
SectorIndustrials
Sector Strength72
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.72
Shares Outstanding182,545,990
10 Day Avg. Volume3,970,516
30 Day Avg. Volume3,240,917
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 Cap0.87
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit3.80
Enterprise Value/Ebitda-174.37
Forecast
1Y Price Target
$16.00Price Target Upside43.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.44
Revenue Forecast (FY)$4.90B
Now Business Overview & Revenue Model
Company Description
Dnow Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and industrial manufacturing operations in the United States, Canada, and internationally. The ...
How the Company Makes Money
DNOW primarily makes money by selling and distributing industrial and energy-focused products to customers and earning a gross margin between its purchase cost from manufacturers and its selling price to end users. Key revenue streams include: (1)...
Now Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call balanced clear near-term challenges (ERP disruptions, pressure on MRC Global U.S. revenues, compressed margins, Q1 GAAP loss and working capital drain) with meaningful progress and actionable remedies (ERP stabilization, Permian SAP migration unlocking ~$40M inventory, raised synergy pace, acquisitive expansion with Edge Controls, opportunistic buybacks, and mid- to long-term growth opportunities in midstream, gas utilities and data centers). Management provided quantified remediation costs and cash generation targets ($100M–$200M OCF guidance) and reiterated a constructive multi-year view (normalized margin and EBITDA improvement expected into 2027). Overall the positives (stabilization milestones, tangible inventory unlock, upgraded synergy cadence, strategic tuck-in M&A and buybacks) offset but did not yet fully eclipse current financial headwinds, leaving the tone cautiously constructive but still transitional.Positive Updates
Combined Company Revenue Growth (Quarterly)
Total revenue for Q1 2026 was $1.2 billion, up 23% QoQ (+$224 million) driven by a full-quarter contribution from MRC Global.
Negative Updates
MRC Global U.S. Revenue Decline (YoY)
MRC Global U.S. stand-alone revenues were down $94 million or 16% year-over-year, with roughly 75% of the decline in upstream and downstream businesses.
Read all updates
Q1-2026 Updates
Positive
Negative
Combined Company Revenue Growth (Quarterly)
Total revenue for Q1 2026 was $1.2 billion, up 23% QoQ (+$224 million) driven by a full-quarter contribution from MRC Global.
Read all positive updates
Company Guidance
DNOW expects sequential revenue growth in Q2 of mid‑ to high‑single digits from Q1's $1.2B, with EBITDA flow‑through on that growth approaching ~25% (well above the typical 10–15%), and full‑year 2026 revenue to approach ~$5.0B with EBITDA margin near 4.5% and operating cash flow of $100–$200M. For context Q1 adjusted EBITDA was $39M (3.3% of revenue) and adjusted EPS was $0.01 (GAAP net loss $44M, or -$0.24), Q1 inventory was $1.2B (3.3x churn), AR $889M (DSO 69 days), AP $662M (DPO 61 days) and working capital ex‑cash was 25.5% of annualized Q1 revenue. Balance sheet metrics at March 31 included total debt $571M, net debt $455M (trailing 12‑month leverage 2.3x) with $379M liquidity (cash $116M, revolver availability $263M); management expects net debt leverage of 1x–2x by year‑end depending on buyback activity (Q1 repurchases $50M; $87M repurchased of $160M authorization; $167M repurchased since late‑2022). They raised near‑term annualized synergy run‑rate to ~ $30M (3‑yr target $70M), said ERP stabilization costs run roughly $4.5M/quarter plus ~ $4M of overtime/temp/warehouse costs that should moderate, and gave modeling details of ~ $24M D&A in Q2, Q2 cash taxes ~ $11M and a full‑year effective tax rate of ~26–27%.Now Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
54
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.40B | 2.82B | 2.37B | 2.32B | 2.14B | 1.63B |
| Gross Profit | 550.00M | 478.00M | 535.00M | 535.00M | 506.00M | 357.00M |
| EBITDA | -12.00M | 35.00M | 153.00M | 166.00M | 160.00M | 39.00M |
| Net Income | -141.00M | -89.00M | 81.00M | 247.00M | 128.00M | 5.00M |
Balance Sheet | ||||||
| Total Assets | 3.93B | 3.92B | 1.62B | 1.53B | 1.32B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 116.00M | 164.00M | 256.00M | 299.00M | 212.00M | 313.00M |
| Total Debt | 689.00M | 669.00M | 42.00M | 41.00M | 38.00M | 32.00M |
| Total Liabilities | 1.78B | 1.69B | 493.00M | 466.00M | 476.00M | 392.00M |
| Stockholders Equity | 2.14B | 2.24B | 1.12B | 1.06B | 842.00M | 711.00M |
Cash Flow | ||||||
| Free Cash Flow | 53.00M | 134.00M | 289.00M | 171.00M | -9.00M | 25.00M |
| Operating Cash Flow | 76.00M | 155.00M | 298.00M | 188.00M | 0.00 | 30.00M |
| Investing Cash Flow | -638.00M | -590.00M | -304.00M | -48.00M | -87.00M | -96.00M |
| Financing Cash Flow | 457.00M | 339.00M | -33.00M | -55.00M | -10.00M | -6.00M |
Now Technical Analysis
Negative
11.12
Price Trends
12.42
Positive
13.23
Negative
13.89
Negative
Market Momentum
0.15
Positive
49.04
Neutral
36.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNOW, the sentiment is Negative. The current price of 11.12 is below the 20-day moving average (MA) of 13.16, below the 50-day MA of 12.42, and below the 200-day MA of 13.89, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 36.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.54B | 21.88 | 15.71% | 1.32% | ― | ― | |
64 Neutral | $1.92B | -478.29 | 2.41% | ― | -7.93% | -45.80% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $5.34B | 51.72 | 7.39% | 1.78% | -4.02% | -39.84% | |
60 Neutral | $2.47B | -8.65 | -8.11% | 10.12% | -8.41% | -356.38% | |
50 Neutral | $2.41B | -12.59 | -9.23% | ― | 41.30% | -195.62% |
* Industrials Sector Average
DNOW
Now
12.89
-1.67
-11.47%
XPRO
Expro Group Holdings
16.44
8.59
109.43%
LBRT
Liberty Energy
32.88
21.43
187.16%
AESI
Atlas Energy Solutions
19.47
7.32
60.25%
FLOC
Flowco Holdings Inc Class A
27.40
9.39
52.12%
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...
Executive/Board Changes
DNOW Announces Planned Board Transition as Director Departs
Neutral
Feb 27, 2026
On February 25, 2026, DNOW Inc. announced that Board member Rodney Eads has notified the company he will not stand for reelection at the 2026 annual meeting of stockholders, and will step off the Board when his current term expires at that meeting...
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.