Now (DNOW) AI Stock Analysis

• Market Cap: $2.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.13
• Revenue Growth: 3.18%
• EPS Growth: -53.71%
• Country: US
• Employees: 2,575
• Sector: Industrials
• Sector Strength: 72
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.26
• Shares Outstanding: 185,661,500
• 10 Day Avg. Volume: 2,239,018
• 30 Day Avg. Volume: 1,963,872
• PEG Ratio: -0.26
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 4.79
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 2.44
• Enterprise Value/Ebitda: 8.24
• 1Y Price Target: $17.67
• Price Target Upside: 17.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $16.50 ▲(9.49% Upside)

DNOW’s score is driven primarily by strong financial footing (notably a very conservative balance sheet) and constructive earnings-call guidance supported by solid recent profitability and free-cash-flow expectations. The main offsets are weaker longer-term technical posture (below 100/200-day averages with negative MACD) and only mid-range valuation support due to no dividend yield.

Positive Factors

Strong Cash Flow Management

Robust cash flow management enhances financial flexibility, allowing DNOW to invest in growth opportunities and weather economic fluctuations.

Strategic Merger with MRC Global

The merger expands DNOW's market presence and operational efficiency, positioning it for long-term growth and competitive advantage in the energy sector.

Strong Balance Sheet

A strong balance sheet with low leverage provides stability and the capacity to pursue strategic initiatives without financial strain.

Negative Factors

Declining Profitability

Decreasing profitability can hinder DNOW's ability to reinvest in its business and may affect long-term growth and shareholder returns.

Flat U.S. Revenue

Stagnant U.S. revenue growth limits DNOW's potential to capitalize on its largest market, impacting overall revenue expansion prospects.

Hypercompetitive Market

Intense competition pressures DNOW's pricing power and margins, challenging its ability to maintain profitability and market share.

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 company offers its products under the DistributionNOW and DNOW brand names. It provides consumable maintenance, repair, and operating supplies; pipes, valves, fittings, flanges, gaskets, fasteners, electrical products, instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as applied products and applications, such as artificial lift systems, coatings, and miscellaneous expendable items. The company also offers original equipment manufacturer equipment, including pumps, generator sets, air and gas compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, it provides supply chain and materials management solutions that include procurement, inventory planning and management, and warehouse management, as well as solutions for logistics, point-of-issue technology, project management, business process, and performance metrics reporting services. The company serves customers through a network of approximately 180 locations in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, and other downstream energy processors; and industrial and manufacturing companies. NOW Inc. was founded in 1862 and is headquartered in Houston, Texas.

How the Company Makes Money

DNOW generates revenue primarily through the sale of industrial products and services to the energy sector, including oil and gas companies. The company's revenue model is based on multiple key streams: direct sales of products such as pipes, valves, fittings, and other equipment, as well as service contracts for logistics, inventory management, and procurement solutions. Additionally, DNOW benefits from strong partnerships with manufacturers and suppliers, allowing them to offer competitive pricing and a diverse product range. Seasonal fluctuations in oil and gas demand can impact revenue, but the company also seeks to diversify its earnings through strategic ventures and expansion into new markets.

Now Financial Statement Overview

Summary

Financials are solid overall, led by an exceptionally strong, low-leverage balance sheet (very low debt-to-equity) and positive profitability in the latest TTM. The key constraints are modest/variable margins and choppier cash-flow trends (including prior-period free-cash-flow weakness), consistent with a cyclical end market.

Income Statement

DNOW shows a solid post-2020 earnings recovery with steadily higher revenue (up from $1.62B in 2020 to $2.43B in TTM (Trailing-Twelve-Months)). Profitability is positive and improved versus 2024, with TTM net income of $95M and net margin around 3.9% (vs. ~3.4% in 2024). That said, profitability is still modest for the cycle and below the unusually strong 2023 level (net margin ~10.6%), indicating earnings can be volatile with industry conditions.

Balance Sheet

The balance sheet is a clear strength: leverage is very low with $38M of total debt against $1.18B of equity in TTM (Trailing-Twelve-Months), translating to a very conservative debt-to-equity of ~0.03. Equity has also grown meaningfully since 2020 ($699M to $1.18B), supporting financial flexibility. The main drawback is that returns on equity are decent but not exceptional in TTM (~8.3%), and have fluctuated significantly across years (from very strong in 2023 to more normalized levels recently).

Cash Flow

Cash generation is generally healthy, with TTM (Trailing-Twelve-Months) operating cash flow of $194M and free cash flow of $177M, and free cash flow broadly tracking earnings (free cash flow about 0.91x net income). However, cash flow has been choppy: free cash flow declined about 15.7% in TTM versus the prior period shown, and operating cash flow was notably higher in 2024 ($298M). There is also a historical blemish in 2022 where free cash flow was negative, highlighting working-capital and cycle sensitivity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.43B	2.37B	2.32B	2.14B	1.63B	1.62B
Gross Profit	561.00M	535.00M	535.00M	506.00M	357.00M	292.00M
EBITDA	166.00M	153.00M	166.00M	160.00M	39.00M	-71.00M
Net Income	95.00M	81.00M	247.00M	128.00M	5.00M	-427.00M
Balance Sheet
Total Assets	1.66B	1.62B	1.53B	1.32B	1.10B	1.01B
Cash, Cash Equivalents and Short-Term Investments	266.00M	256.00M	299.00M	212.00M	313.00M	387.00M
Total Debt	38.00M	42.00M	41.00M	38.00M	32.00M	47.00M
Total Liabilities	475.00M	493.00M	466.00M	476.00M	392.00M	309.00M
Stockholders Equity	1.18B	1.12B	1.06B	842.00M	711.00M	699.00M
Cash Flow
Free Cash Flow	177.00M	289.00M	171.00M	-9.00M	25.00M	181.00M
Operating Cash Flow	194.00M	298.00M	188.00M	0.00	30.00M	189.00M
Investing Cash Flow	-133.00M	-304.00M	-48.00M	-87.00M	-96.00M	22.00M
Financing Cash Flow	-53.00M	-33.00M	-55.00M	-10.00M	-6.00M	-8.00M

Now Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.07
• 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 15.07 is above the 20-day moving average (MA) of 14.03, above the 50-day MA of 13.81, and above the 200-day MA of 14.69, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 66.44 is Neutral, neither overbought nor oversold. The STOCH value of 83.81 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
XPRO	77 Outperform	$1.76B	27.46	4.60%	―	-1.24%	337.41%
DNOW	72 Outperform	$2.76B	17.23	8.10%	―	3.18%	-53.71%
FLOC	70 Outperform	$1.78B	38.49	―	1.32%	―	―
LBRT	66 Neutral	$3.53B	24.49	9.21%	1.78%	-12.05%	-46.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AESI	50 Neutral	$1.45B	-121.96	-1.20%	10.12%	20.68%	-112.42%

Now Corporate Events

DNOW Completes Acquisition of MRC Global

On November 6, 2025, DNOW Inc. completed its acquisition of MRC Global Inc., creating a premier solutions provider in the energy and industrial markets. The merger, which converted MRC Global’s common stock into DNOW’s, is expected to enhance DNOW’s earnings durability, cash flow, and financial position. This strategic move expands DNOW’s geographic footprint and distribution presence across the U.S., Canada, and international markets, serving a broader customer base. The acquisition is anticipated to generate significant cost synergies and operational efficiencies, strengthening DNOW’s market position and offering compelling growth opportunities.

The most recent analyst rating on (DNOW) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Now stock, see the DNOW Stock Forecast page.