Now (DNOW) AI Stock Analysis

• Market Cap: $1.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.11
• 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: 107,107,605
• 10 Day Avg. Volume: 1,325,241
• 30 Day Avg. Volume: 1,233,641
• 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: 0.89
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 2.47
• Enterprise Value/Ebitda: 11.36
• 1Y Price Target: $17.00
• Price Target Upside: 24.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $16.50 ▲(20.61% Upside)

DNOW's overall stock score reflects its strong financial foundation and positive earnings call, highlighting growth opportunities and strategic initiatives like the MRC Global merger. However, declining profitability and mixed technical indicators temper the outlook.

Now Business Overview & Revenue Model

Company Description

Now (DNOW) is a leading provider of supply chain solutions and services for the energy and industrial sectors. The company specializes in offering a wide range of products, including valves, pumps, fittings, and various industrial equipment, primarily targeting customers in oil and gas, petrochemical, and renewable energy industries. With a strong focus on operational efficiency and customer service, DNOW operates through a network of distribution centers and service locations, providing tailored solutions that meet the specific needs of its clients.

How the Company Makes Money

DNOW generates revenue through the sale of industrial products and services, primarily serving the energy and industrial markets. Key revenue streams include direct product sales, rental services, and maintenance contracts for equipment. The company capitalizes on its extensive distribution network to provide timely delivery and support to its customers. Significant partnerships with leading manufacturers and suppliers enhance its product offerings and competitive advantage. Additionally, the company leverages its expertise in supply chain management to offer value-added services, thereby increasing customer loyalty and driving repeat business.

Now Financial Statement Overview

Summary

DNOW's financial performance is characterized by stable revenue and excellent cash flow management, with a strong balance sheet featuring low leverage and high equity. However, profitability has declined, as evidenced by reduced net and EBIT margins.

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	2.43B	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	122.00M	148.00M	166.00M	170.00M	40.00M	-77.00M
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	25.00M	67.00M	41.00M	38.00M	17.00M	25.00M
Total Liabilities	475.00M	493.00M	466.00M	476.00M	392.00M	309.00M
Stockholders Equity	1.19B	1.13B	1.06B	842.00M	712.00M	699.00M
Cash Flow
Free Cash Flow	177.00M	289.00M	171.00M	-27.00M	25.00M	181.00M
Operating Cash Flow	194.00M	298.00M	188.00M	-18.00M	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: Negative
• Last Price: 13.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 13.68 is below the 20-day moving average (MA) of 14.45, below the 50-day MA of 15.04, and below the 200-day MA of 15.23, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 33.46 is Neutral, neither overbought nor oversold. The STOCH value of 47.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DNOW.

Now Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPRO	76 Outperform	$1.48B	21.91	4.60%	―	-1.24%	337.41%
DNOW	75 Outperform	$1.56B	15.46	8.10%	―	3.18%	-53.71%
LBRT	69 Neutral	$2.82B	15.49	9.21%	1.86%	-12.05%	-46.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLOC	57 Neutral	$1.53B	32.12	―	1.00%	―	―
AESI	52 Neutral	$1.39B	-114.95	-1.20%	8.85%	20.68%	-112.42%
MRC	45 Neutral	$1.17B	―	0.28%	―	-10.96%	-169.10%

Now Corporate Events

DNOW Inc. Completes Merger with MRC Global

On June 26, 2025, DNOW Inc. entered into a Merger Agreement with MRC Global Inc., involving a series of mergers that will result in MRC Global becoming a wholly-owned subsidiary of DNOW. The completion of these transactions is contingent upon regulatory approvals, including the expiration of the statutory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, which expired on October 6, 2025, and other customary closing conditions.

The most recent analyst rating on (DNOW) stock is a Buy with a $18.50 price target. To see the full list of analyst forecasts on Now stock, see the DNOW Stock Forecast page.

DNOW Faces Legal Challenges in MRC Global Merger

On June 26, 2025, DNOW Inc. entered into a merger agreement with MRC Global, involving a two-step merger process, with the goal of MRC Global becoming a wholly-owned subsidiary of DNOW. The merger has faced legal challenges, with several shareholder complaints and demand letters alleging material omissions in the joint proxy statement/prospectus, potentially violating securities laws. Despite believing the allegations are without merit, DNOW is voluntarily providing supplemental disclosures to avoid delays and distractions in closing the merger.

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.

Now Inc. Reports Record Q2 Earnings Amid Growth

In a recent earnings call, Now Inc. showcased a generally positive outlook, buoyed by record second-quarter EBITDA and significant revenue growth. The company highlighted its robust financial position and expansion in the midstream business as key drivers of this success. However, challenges in the Canadian and international markets, alongside tariff and supply chain issues, were acknowledged, though they did not overshadow the overall positive sentiment due to strong financial results and growth in crucial areas.

DNOW Inc. Announces Strong Q2 Results and Major Merger

DNOW Inc., a supplier of energy and industrial products, is renowned for its extensive supply chain solutions and digital offerings, serving a wide range of industries including energy, mining, and renewables. Headquartered in Houston, Texas, the company has a legacy of over 160 years and operates with a network of locations worldwide.