Dnow Inc. (DNOW) 10-Year Financial Performance & Capital Metrics

DNOW • • Industrial / General

EnergyOilfield ServicesDistribution & Supply ChainOilfield Distribution

AboutDnow 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.Show more

Revenue $2.37B +2.2%
EBITDA $147M -11.4%
Net Income $81M -67.2%
EPS (Diluted) 0.75 -66.5%
Gross Margin 22.55% -2.2%
EBITDA Margin 6.19% -13.4%
Operating Margin 4.76% -21.1%
Net Margin 3.41% -67.9%
ROE 7.39% -71.5%
ROIC 9.86% -30.7%
Debt/Equity 0.04 -3.5%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓High quality earnings: Operating CF exceeds net income
✓Good 3Y average ROE of 16.6%
✓Trading at only 1.4x book value
✓Efficient asset utilization: 1.5x turnover

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-5.33%

5Y-4.27%

3Y13.29%

TTM3.18%

Profit (Net Income) CAGR

10Y-3.53%

5Y-

3Y153.03%

TTM-53.66%

EPS CAGR

10Y-3.4%

5Y-

3Y155.06%

TTM-92.59%

ROCE

10Y Avg-5.15%

5Y Avg-0.43%

3Y Avg13.38%

Latest9.87%

Peer Comparison

Oilfield Distribution

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
DNOWDnow Inc.	2.66B	14.34	19.12	2.24%	3.91%	8.02%	10.85%	0.04

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	3.01B	2.11B	2.65B	3.13B	2.95B	1.62B	1.63B	2.14B	2.32B	2.37B
Revenue Growth %	-0.27%	-0.3%	0.26%	0.18%	-0.06%	-0.45%	0.01%	0.31%	0.09%	0.02%
Cost of Goods Sold+	2.51B	1.76B	2.15B	2.5B	2.37B	1.33B	1.27B	1.63B	1.79B	1.84B
COGS % of Revenue	0.83%	0.84%	0.81%	0.8%	0.8%	0.82%	0.78%	0.76%	0.77%	0.77%
Gross Profit+	502M	345M	501M	630M	586M	292M	357M	506M	535M	535M
Gross Margin %	0.17%	0.16%	0.19%	0.2%	0.2%	0.18%	0.22%	0.24%	0.23%	0.23%
Gross Profit Growth %	-0.39%	-0.31%	0.45%	0.26%	-0.07%	-0.5%	0.22%	0.42%	0.06%	0%
Operating Expenses+	619M	567M	542M	557M	669M	712M	348M	375M	395M	422M
OpEx % of Revenue	0.21%	0.27%	0.2%	0.18%	0.23%	0.44%	0.21%	0.18%	0.17%	0.18%
Selling, General & Admin	619M	567M	542M	557M	541M	391M	341M	365M	395M	416M
SG&A % of Revenue	0.21%	0.27%	0.2%	0.18%	0.18%	0.24%	0.21%	0.17%	0.17%	0.18%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	0	0	128M	321M	7M	10M	0	6M
Operating Income+	-510M	-222M	-41M	73M	-83M	-420M	9M	131M	140M	113M
Operating Margin %	-0.17%	-0.11%	-0.02%	0.02%	-0.03%	-0.26%	0.01%	0.06%	0.06%	0.05%
Operating Income Growth %	-3.82%	0.56%	0.82%	2.78%	-2.14%	-4.06%	1.02%	13.56%	0.07%	-0.19%
EBITDA+	-472M	-169M	9M	114M	-42M	-392M	32M	150M	166M	147M
EBITDA Margin %	-0.16%	-0.08%	0%	0.04%	-0.01%	-0.24%	0.02%	0.07%	0.07%	0.06%
EBITDA Growth %	-3.34%	0.64%	1.05%	11.67%	-1.37%	-8.33%	1.08%	3.69%	0.11%	-0.11%
D&A (Non-Cash Add-back)	38M	53M	50M	41M	41M	28M	23M	19M	26M	34M
EBIT	-117M	-222M	-41M	73M	45M	-99M	16M	141M	140M	119M
Net Interest Income+	0	0	0	0	0	0	0	0	0	0
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	0	0	0	0	0	0	0	0	0	0
Other Income/Expense	-8M	-8M	-11M	-15M	-10M	-10M	3M	8M	-2M	1M
Pretax Income+	-518M	-230M	-52M	58M	-93M	-430M	12M	139M	138M	114M
Pretax Margin %	-0.17%	-0.11%	-0.02%	0.02%	-0.03%	-0.27%	0.01%	0.07%	0.06%	0.05%
Income Tax+	-16M	4M	0	6M	4M	-3M	7M	10M	-110M	32M
Effective Tax Rate %	0.97%	1.02%	1%	0.9%	1.04%	0.99%	0.42%	0.92%	1.79%	0.71%
Net Income+	-502M	-234M	-52M	52M	-97M	-427M	5M	128M	247M	81M
Net Margin %	-0.17%	-0.11%	-0.02%	0.02%	-0.03%	-0.26%	0%	0.06%	0.11%	0.03%
Net Income Growth %	-5.33%	0.53%	0.78%	2%	-2.87%	-3.4%	1.01%	24.6%	0.93%	-0.67%
Net Income (Continuing)	-502M	-234M	-52M	52M	-97M	-427M	5M	129M	248M	82M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	1M	2M	3M	4M
EPS (Diluted)+	-4.69	-2.19	-0.48	0.48	-0.89	-3.90	0.05	1.13	2.24	0.75
EPS Growth %	-5.42%	0.53%	0.78%	2%	-2.85%	-3.38%	1.01%	24%	0.98%	-0.67%
EPS (Basic)	-4.69	-2.19	-0.48	0.48	-0.89	-3.90	0.05	1.14	2.26	0.75
Diluted Shares Outstanding	107M	107M	107.75M	109M	108.78M	109.41M	110.49M	111.22M	108.42M	107.15M
Basic Shares Outstanding	107M	107M	107.75M	108M	108.78M	109.41M	110.4M	110.68M	107.4M	106.35M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.29B	959M	1.13B	1.22B	1.07B	861M	883M	1.02B	1.07B	1.03B
Cash & Short-Term Investments	90M	106M	98M	116M	183M	387M	313M	212M	299M	256M
Cash Only	90M	106M	98M	116M	183M	387M	313M	212M	299M	256M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	485M	354M	423M	482M	370M	198M	304M	398M	384M	388M
Days Sales Outstanding	58.81	61.32	58.31	56.26	45.76	44.64	67.99	68.01	60.39	59.68
Inventory	693M	483M	590M	602M	465M	262M	250M	381M	366M	352M
Days Inventory Outstanding	100.86	100.05	100.3	88	71.77	72.06	71.57	85.32	74.8	69.9
Other Current Assets	24M	16M	18M	19M	34M	0	0	26M	19M	32M
Total Non-Current Assets+	540M	644M	620M	576M	524M	147M	221M	303M	461M	593M
Property, Plant & Equipment	165M	143M	119M	106M	176M	98M	111M	119M	171M	157M
Fixed Asset Turnover	18.24x	14.73x	22.25x	29.50x	16.77x	16.52x	14.70x	17.95x	13.57x	15.11x
Goodwill	205M	311M	328M	314M	245M	0	67M	116M	139M	230M
Intangible Assets	161M	184M	166M	144M	90M	0	9M	25M	28M	65M
Long-Term Investments	0	0	0	0	0	0	0	0	0	0
Other Non-Current Assets	5M	5M	5M	10M	11M	48M	34M	43M	5M	48M
Total Assets+	1.83B	1.6B	1.75B	1.79B	1.59B	1.01B	1.1B	1.32B	1.53B	1.62B
Asset Turnover	1.64x	1.31x	1.51x	1.74x	1.85x	1.61x	1.48x	1.62x	1.52x	1.46x
Asset Growth %	-0.29%	-0.13%	0.09%	0.03%	-0.11%	-0.37%	0.1%	0.2%	0.16%	0.06%
Total Current Liabilities+	307M	347M	394M	441M	396M	272M	369M	439M	418M	442M
Accounts Payable	211M	246M	290M	329M	255M	172M	235M	304M	288M	300M
Days Payables Outstanding	30.71	50.96	49.3	48.09	39.36	47.31	67.27	68.07	58.86	59.58
Short-Term Debt	0	0	0	0	0	0	0	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	23M	28M	20M	45M	38M	27M	57M	45M	53M	45M
Current Ratio	4.21x	2.76x	2.87x	2.76x	2.69x	3.17x	2.39x	2.32x	2.56x	2.33x
Quick Ratio	1.95x	1.37x	1.37x	1.40x	1.52x	2.20x	1.72x	1.45x	1.68x	1.53x
Cash Conversion Cycle	128.96	110.42	109.31	96.17	78.17	69.39	72.28	85.25	76.33	70.01
Total Non-Current Liabilities+	122M	73M	170M	140M	51M	37M	23M	37M	48M	51M
Long-Term Debt	108M	65M	162M	132M	0	0	0	0	0	0
Capital Lease Obligations	0	0	0	0	44M	25M	17M	25M	30M	29M
Deferred Tax Liabilities	11M	7M	7M	6M	4M	0	0	1M	0	0
Other Non-Current Liabilities	3M	1M	1M	2M	3M	12M	6M	11M	18M	22M
Total Liabilities	429M	420M	564M	581M	447M	309M	392M	476M	466M	493M
Total Debt+	108M	65M	162M	132M	72M	47M	32M	38M	41M	42M
Net Debt	18M	-41M	64M	16M	-111M	-340M	-281M	-174M	-258M	-214M
Debt / Equity	0.08x	0.05x	0.14x	0.11x	0.06x	0.07x	0.04x	0.05x	0.04x	0.04x
Debt / EBITDA	-	-	18.00x	1.16x	-	-	1.00x	0.25x	0.25x	0.29x
Net Debt / EBITDA	-	-	7.11x	0.14x	-	-	-8.78x	-1.16x	-1.55x	-1.46x
Interest Coverage	-	-	-	-	-	-	-	-	-	-
Total Equity+	1.4B	1.18B	1.19B	1.21B	1.14B	699M	712M	844M	1.06B	1.13B
Equity Growth %	-0.29%	-0.16%	0%	0.02%	-0.06%	-0.39%	0.02%	0.19%	0.26%	0.06%
Book Value per Share	13.11	11.06	11.00	11.14	10.52	6.39	6.44	7.59	9.80	10.53
Total Shareholders' Equity	1.4B	1.18B	1.19B	1.21B	1.14B	699M	711M	842M	1.06B	1.12B
Common Stock	1M	1M	1M	1M	1M	1M	1M	1M	1M	1M
Retained Earnings	-444M	-678M	-730M	-678M	-775M	-1.21B	-1.2B	-1.07B	-828M	-747M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-134M	-142M	-105M	-143M	-128M	-145M	-147M	-150M	-145M	-153M
Minority Interest	0	0	0	0	0	0	1M	2M	3M	4M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	324M	235M	-115M	73M	224M	189M	30M	0	188M	298M
Operating CF Margin %	0.11%	0.11%	-0.04%	0.02%	0.08%	0.12%	0.02%	-	0.08%	0.13%
Operating CF Growth %	2%	-0.27%	-1.49%	1.63%	2.07%	-0.16%	-0.84%	-1%	-	0.59%
Net Income	-502M	-234M	-52M	52M	-97M	-427M	5M	129M	248M	82M
Depreciation & Amortization	38M	53M	50M	41M	41M	28M	23M	19M	26M	34M
Stock-Based Compensation	27M	23M	20M	16M	13M	0	8M	11M	15M	13M
Deferred Taxes	-6M	-2M	-1M	-1M	-2M	0	-8M	1M	-119M	25M
Other Non-Cash Items	467M	53M	3M	11M	171M	418M	35M	20M	27M	25M
Working Capital Changes	300M	342M	-135M	-46M	98M	170M	-33M	-180M	-9M	119M
Change in Receivables	414M	102M	-64M	-69M	98M	157M	-97M	-95M	16M	81M
Change in Inventory	258M	190M	-110M	-30M	109M	148M	3M	-138M	12M	80M
Change in Payables	-367M	22M	41M	-725M	-110M	0	64M	0	0	-34M
Cash from Investing+	-523M	-183M	8M	-9M	-22M	22M	-96M	-87M	-48M	-304M
Capital Expenditures	-11M	-11M	-4M	-11M	-12M	-8M	-5M	-9M	-17M	-9M
CapEx % of Revenue	0%	0.01%	0%	0%	0%	0%	0%	0%	0.01%	0%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	3M	3M	16M	2M	-2M	4M	5M	2M	1M	4M
Cash from Financing+	106M	-47M	94M	-37M	-138M	-8M	-6M	-10M	-55M	-33M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-2M	-4M	-3M	-7M	0	0	0	0	0	0
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	313M	224M	-119M	62M	212M	181M	25M	-9M	171M	289M
FCF Margin %	0.1%	0.11%	-0.04%	0.02%	0.07%	0.11%	0.02%	-0%	0.07%	0.12%
FCF Growth %	3.54%	-0.28%	-1.53%	1.52%	2.42%	-0.15%	-0.86%	-1.36%	20%	0.69%
FCF per Share	2.93	2.09	-1.10	0.57	1.95	1.65	0.23	-0.08	1.58	2.70
FCF Conversion (FCF/Net Income)	-0.65x	-1.00x	2.21x	1.40x	-2.31x	-0.44x	6.00x	-	0.76x	3.68x
Interest Paid	2M	0	6M	9M	7M	2M	0	0	0	0
Taxes Paid	10M	0	2M	6M	5M	0	0	11M	10M	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	-29.8%	-18.1%	-4.39%	4.34%	-8.23%	-46.34%	0.71%	16.45%	25.9%	7.39%
Return on Invested Capital (ROIC)	-23.97%	-12.99%	-2.57%	4.42%	-5.5%	-45.26%	1.71%	17.85%	14.24%	9.86%
Gross Margin	16.68%	16.37%	18.92%	20.15%	19.86%	18.04%	21.88%	23.69%	23.05%	22.55%
Net Margin	-16.68%	-11.11%	-1.96%	1.66%	-3.29%	-26.37%	0.31%	5.99%	10.64%	3.41%
Debt / Equity	0.08x	0.05x	0.14x	0.11x	0.06x	0.07x	0.04x	0.05x	0.04x	0.04x
FCF Conversion	-0.65x	-1.00x	2.21x	1.40x	-2.31x	-0.44x	6.00x	-	0.76x	3.68x
Revenue Growth	-26.67%	-30%	25.68%	18.09%	-5.63%	-45.14%	0.8%	30.88%	8.66%	2.24%

Revenue by Geography

	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
UNITED STATES	2.79B	-	1.45B	1.91B	2.37B	2.24B	1.15B	1.16B	1.59B	1.75B
UNITED STATES Growth	-	-	-	32.46%	23.88%	-5.53%	-48.53%	0.87%	36.80%	9.93%
International	-	605M	404M	378M	-	-	-	-	-	290M
International Growth	-	-	-33.22%	-6.44%	-	-	-	-	-	-
CANADA	669M	-	258M	356M	358M	319M	209M	249M	315M	282M
CANADA Growth	-	-	-	37.98%	0.56%	-10.89%	-34.48%	19.14%	26.51%	-10.48%
U S	-	2.03B	-	-	-	-	-	-	-	-
U S Growth	-	-	-	-	-	-	-	-	-	-
C A	-	378M	-	-	-	-	-	-	-	-
C A Growth	-	-	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Dnow Inc. (DNOW) has a price-to-earnings (P/E) ratio of 19.1x. This is roughly in line with market averages.

Growth & Financials

Dnow Inc. (DNOW) reported $2.43B in revenue for fiscal year 2024. This represents a 29% decrease from $3.41B in 2012.

Dnow Inc. (DNOW) grew revenue by 2.2% over the past year. Growth has been modest.

Yes, Dnow Inc. (DNOW) is profitable, generating $95.0M in net income for fiscal year 2024 (3.4% net margin).

Dividend & Returns

Dnow Inc. (DNOW) has a return on equity (ROE) of 7.4%. This is below average, suggesting room for improvement.

Dnow Inc. (DNOW) generated $177.0M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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