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DNOW Inc.

Rank #425Hypergrowth

DNOW · NYSE · Industrials

DNOW Inc. (DNOW) — Rank #425 by gross profitability (GP/assets 0.13) · ROE -4.3% · Piotroski F-Score 4 / 9.

As-of 2026-09-15 · CIK 0001599617 · all metrics point-in-time as of the filing date.

About

DNOW Inc. distributes pipe, valves, fittings, and pumps in the United States, Canada, and internationally.

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The company offers flanges, gaskets, fasteners, electrical, instrumentation, artificial lift, and pumping systems, process and production equipment, production measurement technology, maintenance, repair and operating consumables (MRO), and general and specialty products; personal protective equipment; and mill, tools, safety supplies, as well as vapor recovery systems under EcoVapo brand. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas wellsite facility solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning; integrated supply; integrated supply; product quality programs; manufacturer assessments; multiple daily deliveries; volume purchasing; truck stocking; technical support; training; just-in-time delivery; and on-site commissioning; after-market field repair and rental mobile pumping units; inventory and zone store management; order consolidation; product tagging and system interfaces tailored; supplier specifications; engineering of control packages; valve inspection and repair; product expediting, tracking and tracing; documentation services; and pressure testing services. It serves customers in the upstream, midstream, and Gas Utilities sectors, as well as downstream and industrial including crude oil refining, petrochemical and chemical processing, general industrials, pharmaceutical, mining, water/wastewater treatment, data centers, liquefied natural gas, and terminals and renewable natural gas facilities. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc.

was founded in 1862 and is headquartered in Houston, Texas.

Industry
Industrial Distribution
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
dnow.com

Price History

DNOW+108.1% · +15.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$2.89B

P/E (annual)

—

P/S (annual)

1.0

P/B

1.4

P/OCF (annual)

18.7

Shareholder Yield

-9.7%

Employees

5,100

Industry

Industrial Distribution

Exchange

NYSE

Signal Flags

1 green1 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Balance sheet deterioratingNet cash collapsed with receivables or inventory outpacing revenue

Quality Profile

Profitability

1/1 pass
GP / assets
0.13
Return on equity
-4.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.82
Current ratio
2.14×
Net cash
-$360.00M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.0%

Growth

1/2 pass
Revenue growth
33.8%
Piotroski F-Score
4 / 9
Share dilution
9.7%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

2.9%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 9.7% — per-share value needs a total required return of 12.7% once share-count change is priced in.

vs. own 6-year median revenue growth: -4.4%

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-1.1%

r = 10% (base)

2.9%

r = 12%

6.4%

Net debt / market cap: 19.1%

Base FCF: $134M3Y mean FCF: $141.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
16.2xmed 21.5x30.8x

P / S

Price / revenue per share

0.4xCheap
0.4xmed 0.5x1.1x

P / B

Price / book value per share

0.9xCheap
0.9xmed 1.2x1.9x

P / GP

Price / gross profit per share

1.8xCheap
1.8xmed 2.9x6.5x

P / FCF

Price / free cash flow per share

5.0xCheap
4.9xmed 9.4x34.5x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.13

Primary signal (Novy-Marx).

0th pctl of 36 SIC 35 peers

Return on equity

-4.3%

Gross margin

17.0%

0th pctl of 36 SIC 35 peers

Revenue growth (YoY)

33.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2014201520162017
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.82

57th pctl of 36 SIC 35 peers (best = lowest)

Current ratio

2.14×

51st pctl of 36 SIC 35 peers

Quick ratio

1.01×

Net cash

-$360.00M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$134.00M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

2.51

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.0%

Stock-based comp intensity.

Piotroski F-Score

F-Score

4 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20122017
Value
Decline
Hypergrowth
View full financial statements →