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DNOW Inc. (DNOW) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

DNOW Inc.

DNOWMarket cap $2.78BPrice $15.4

Country🇺🇸United States

SectorIndustrials

IndustryTrading & Distribution

DNOW distributes pipes, valves, and fittings that keep oil rigs, refineries, and pipelines running. Spun off from National Oilwell Varco, it now supplies energy, industrial, and even water infrastructure projects across the globe, quietly powering the equipment beneath the equipment.

In Bastion Portfolios?

52W Return+9%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+10%7

Revenue Forecast

Rev CAGR (1y)+80%10

Rev CAGR (3y)+26%9

Rev CAGR (5y)+17%9

Earnings Forecast

EPS Growth Y+10%5

EPS Growth Y+2+142%10

EPS Growth Y+3+28%8

Quality

Margins

EBIT Margin2%2

Net Income Margin-5%1

Free Cash Flow Margin3%3

Debt

Net Debt/EBITDA2.93

Efficiency

ROE-12%1

ROA-7%1

Earnings Stability55

GEAR+AVERAGE34

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)292

P/E Ratio (Forward 3y)145

P/BV1.38

EV Multiples

EV/EBITDA Fwd154

EV/EBIT Fwd302

Yield

Free Cash Flow Yield4.9%6

Dividend Yieldna–

Momentum

Short term

1 month return-5%5

3 month return+19%10

YTD return+16%7

Mid term

Price vs 52wHigh89%8

1 year return-2%4

Long term

3 year return+34%5

5 year return+74%7

Risk Shield

Price Risk

Beta1.13

Volatility41%4

Free Cash Flow

Free Cash Flow Margin3%3

Free Cash Flow Yield4.9%6

Quality

ROCE4%3

Earnings Stability55

Net Debt/EBITDA2.93

02Growth

Is it actually growing, and how fast?

DNOWDNOW

Revenue FY25$2.8B

GROWTH RATING↗

VERY STRONG91 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+10%7

Revenue, next 1Y+80%10

Revenue, next 3Y, CAGR+26%9

Revenue, next 5Y, CAGR+17%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E+142%10

EPS growth, FY28E+28%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 91% of companies worldwide.

Revenue grew 10%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Revenue is set to grow 26%/yr over the next 3 years, ahead of most of the market.9/10

Revenue grew 10%/yr over the last 3 years and is set to grow 26%/yr from here.

The runway holds up: revenue is set to grow 17%/yr over five years.9/10

WATCH

None flagged.

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A top-tier grower that's speeding up. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG70 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return+19%10

YTD return+16%7

MID & LONG-TERM▾SCORE

% of 52-week high89%8

1-year return-2%4

3-year return+34%5

5-year return+74%7

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over three months (+19%) and so far this year (+16%).

WATCH

Average long-term results. Multi-year returns are middling (+34% over three years and +74% over five), roughly average for the market.

It's down 2% over the past year, now 11% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over the past month (-5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Fresh Momentum

Short-term returns are strong but the long track record is thin. Momentum is building — confirmation from longer horizons would strengthen the case.

04Value

Are you paying a fair price for it?

Stop guessing on DNOW Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

DNOWDNOW

Revenue FY25$2.8B

GROWTH RATING↗

VERY STRONG91 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+10%7

Revenue, next 1Y+80%10

Revenue, next 3Y, CAGR+26%9

Revenue, next 5Y, CAGR+17%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E+142%10

EPS growth, FY28E+28%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 91% of companies worldwide.

Revenue grew 10%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Revenue is set to grow 26%/yr over the next 3 years, ahead of most of the market.9/10

Revenue grew 10%/yr over the last 3 years and is set to grow 26%/yr from here.

The runway holds up: revenue is set to grow 17%/yr over five years.9/10

WATCH

None flagged.

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A top-tier grower that's speeding up. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG70 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return+19%10

YTD return+16%7

MID & LONG-TERM▾SCORE

% of 52-week high89%8

1-year return-2%4

3-year return+34%5

5-year return+74%7

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over three months (+19%) and so far this year (+16%).

WATCH

Average long-term results. Multi-year returns are middling (+34% over three years and +74% over five), roughly average for the market.

It's down 2% over the past year, now 11% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over the past month (-5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Fresh Momentum

Short-term returns are strong but the long track record is thin. Momentum is building — confirmation from longer horizons would strengthen the case.

04Value

Are you paying a fair price for it?

Stop guessing on DNOW Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community