Latest Ratios: P/E Ratio -20.9x · EV/EBITDA 94.0x · ROE -5.3%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.9B | $1.6B | $1.4B | $1.2B | $1.4B | $944M | $786M | $1.2B | $1.3B | $1.2B | $2.2B |
| Enterprise Value | $3.3B | $2.0B | $1.2B | $969M | $1.2B | $663M | $446M | $1.1B | $1.3B | $1.3B | $2.1B |
| P/E Ratio → | -20.95 | — | 17.35 | 5.05 | 11.24 | 188.94 | — | — | 24.25 | — | — |
| P/S Ratio | 1.02 | 0.55 | 0.59 | 0.53 | 0.66 | 0.58 | 0.49 | 0.41 | 0.41 | 0.45 | 1.04 |
| P/B Ratio | 0.83 | 0.70 | 1.24 | 1.15 | 1.67 | 1.33 | 1.12 | 1.07 | 1.05 | 1.00 | 1.85 |
| P/FCF | 21.40 | 11.67 | 4.82 | 7.18 | — | 37.75 | 4.34 | 5.77 | 20.46 | — | 9.78 |
| P/OCF | 18.50 | 10.09 | 4.68 | 6.53 | — | 31.45 | 4.16 | 5.46 | 17.38 | — | 9.32 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.70 | 0.50 | 0.42 | 0.58 | 0.41 | 0.28 | 0.38 | 0.41 | 0.47 | 1.02 |
| EV / EBITDA | 93.97 | 56.70 | 8.03 | 5.84 | 8.26 | 20.71 | — | — | 11.27 | 139.16 | — |
| EV / EBIT | — | — | 9.92 | 7.02 | 8.78 | 41.41 | — | 24.70 | 17.60 | — | — |
| EV / FCF | — | 14.81 | 4.08 | 5.67 | — | 26.51 | 2.46 | 5.24 | 20.72 | — | 9.60 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.0% | 17.0% | 22.5% | 23.1% | 23.7% | 21.9% | 18.0% | 19.9% | 20.1% | 18.9% | 16.4% |
| Operating Margin | -0.6% | -0.6% | 4.8% | 6.0% | 6.1% | 0.6% | -25.9% | -2.8% | 2.3% | -1.5% | -10.5% |
| Net Profit Margin | -3.2% | -3.2% | 3.4% | 10.6% | 6.0% | 0.3% | -26.4% | -3.3% | 1.7% | -2.0% | -11.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -5.3% | -5.3% | 7.4% | 25.9% | 16.5% | 0.7% | -46.3% | -8.2% | 4.3% | -4.4% | -18.1% |
| ROA | -3.2% | -3.2% | 5.1% | 17.3% | 10.6% | 0.5% | -32.9% | -5.7% | 2.9% | -3.1% | -13.6% |
| ROIC | -0.7% | -0.7% | 9.9% | 14.2% | 17.8% | 1.7% | -45.3% | -5.5% | 4.4% | -2.6% | -13.0% |
| ROCE | -0.8% | -0.8% | 9.9% | 14.1% | 16.2% | 1.2% | -43.5% | -6.5% | 5.4% | -3.1% | -16.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.26 | 0.26 | 0.04 | 0.04 | 0.05 | 0.04 | 0.07 | 0.06 | 0.11 | 0.14 | 0.05 |
| Debt / EBITDA | 16.71 | 16.71 | 0.29 | 0.25 | 0.25 | 1.00 | — | — | 1.16 | 18.00 | — |
| Net Debt / Equity | — | 0.19 | -0.19 | -0.24 | -0.21 | -0.39 | -0.49 | -0.10 | 0.01 | 0.05 | -0.03 |
| Net Debt / EBITDA | 12.03 | 12.03 | -1.46 | -1.55 | -1.16 | -8.78 | — | — | 0.14 | 7.11 | — |
| Debt / FCF | — | 3.14 | -0.74 | -1.51 | — | -11.24 | -1.88 | -0.52 | 0.26 | — | -0.18 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.34 | 2.34 | 2.33 | 2.56 | 2.32 | 2.39 | 3.17 | 2.69 | 2.76 | 2.87 | 2.76 |
| Quick Ratio | 1.11 | 1.11 | 1.53 | 1.68 | 1.45 | 1.72 | 2.20 | 1.52 | 1.40 | 1.37 | 1.37 |
| Cash Ratio | 0.17 | 0.17 | 0.58 | 0.72 | 0.48 | 0.85 | 1.42 | 0.46 | 0.26 | 0.25 | 0.31 |
| Asset Turnover | — | 0.72 | 1.46 | 1.52 | 1.62 | 1.48 | 1.61 | 1.85 | 1.74 | 1.51 | 1.31 |
| Inventory Turnover | 1.96 | 1.96 | 5.22 | 4.88 | 4.28 | 5.10 | 5.06 | 5.09 | 4.15 | 3.64 | 3.65 |
| Days Sales Outstanding | — | 113.12 | 59.68 | 60.39 | 68.01 | 67.99 | 44.64 | 45.76 | 56.26 | 58.31 | 61.32 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 5.8% | 19.8% | 8.9% | 0.5% | — | — | 4.1% | — | — |
| FCF Yield | 4.7% | 8.6% | 20.7% | 13.9% | — | 2.6% | 23.0% | 17.3% | 4.9% | — | 10.2% |
| Buyback Yield | 1.3% | 2.4% | 1.6% | 4.1% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.3% | 2.4% | 1.6% | 4.1% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $118M | $107M | $108M | $111M | $110M | $109M | $109M | $109M | $108M | $107M |
Includes 30+ ratios · 14 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying DNOW stock.
Dnow Inc.'s current P/E ratio is -20.9x. The historical average is 45.2x.
Dnow Inc.'s current EV/EBITDA is 94.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.7x.
Dnow Inc.'s return on equity (ROE) is -5.3%. The historical average is -2.7%.
Based on historical data, Dnow Inc. is trading at a P/E of -20.9x. Compare with industry peers and growth rates for a complete picture.
Dnow Inc. has 17.0% gross margin and -0.6% operating margin.
Dnow Inc.'s Debt/EBITDA ratio is 16.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Acquisition integration and margin dilution
Metrics are mathematically derived from official filings.
Margin Collapse Post-Acquisition
Gross margin plunged to 7.1% in 2025Q4 from a stable 22-23% range, as reported in financial statements, while operating margin swung to -11.2%, indicating severe acquisition-related dilution.
The sharp contraction in gross margin from 22.9% in 2025Q3 to 7.1% in 2025Q4, per the ratio data, suggests the acquired business carries structurally lower margins or integration costs are being absorbed. Operating margin followed suit, turning deeply negative in 2025Q4 before recovering to 0.1% by 2026Q2, implying the drag is persistent but may be stabilizing. Investors should monitor whether gross margin can return to the 22%+ range as integration completes, as the current level is unsustainable for a distribution model.
Return on Capital Decay
ROIC fell from 2.9% in 2025Q3 to -4.4% in 2025Q4, per reported figures, before recovering to 0.0% in 2026Q2, indicating the acquisition has temporarily destroyed capital efficiency.
The pre-acquisition ROIC hovered around 2-3%, but the post-acquisition capital base expansion, with total assets more than doubling, has diluted returns. The negative ROIC in 2025Q4 reflects the operating loss, while the near-zero 2026Q2 reading suggests the new capital is not yet generating adequate returns. This implies the acquisition has not yet achieved the expected synergies, and investors should watch for ROIC to exceed the pre-acquisition level of ~2.5% as a sign of successful integration.
Working Capital Strain
Cash conversion cycle lengthened to 100 days in 2026Q2 from 78 days a year earlier, per ratio data, driven by DIO rising to 96 days and DSO to 62 days, indicating inventory and receivables absorption.
The CCC expansion is largely due to inventory days increasing from 75 to 96, likely reflecting the acquired company's product mix or slower-moving stock. DSO also ticked up, suggesting customer payment terms may be stretching. This working capital build consumed cash, contributing to the negative FCF in 2026Q1, and signals that management needs to improve inventory turnover to restore cash generation.
Leverage Spike Signals Shift
Debt-to-equity jumped from 0.04 in 2025Q2 to 0.28 in 2026Q2, per balance sheet data, as total debt rose to $583M, indicating a deliberate move to fund growth through borrowing.
The leverage increase is a strategic shift from a nearly debt-free balance sheet to one with meaningful debt, used to finance the acquisition. While the D/E of 0.28 remains moderate, the absolute debt level of $583M is significant relative to equity. Interest coverage data is unavailable, but the operating losses in 2025Q4 suggest coverage would have been thin. Investors should monitor whether the acquired assets generate sufficient EBITDA to service this debt comfortably.
Liquidity Buffer Thins
Current ratio dipped to 2.14 in 2026Q2 from 2.52 in 2025Q3, per ratio data, while cash fell to $114M from $266M, indicating a reduced cushion against shocks.
The current ratio remains above 2, which is adequate, but the decline in cash and the rise in inventory days suggest the liquidity position is less robust than before. The quick ratio of 1.06 in 2026Q2 is notably lower than the 1.65 seen in 2025Q3, indicating that inventory is becoming a larger component of current assets. Under stress, the company may need to rely on its debt capacity, which has increased, but the reduced cash buffer warrants monitoring.
Misapplied P/E on Distorted Earnings
The trailing P/E of -21.91 is meaningless given negative earnings, while forward P/E of 47.86, per valuation data, may mislead investors about the true earnings power post-acquisition.
The most commonly misapplied ratio for DNOW is the P/E, because the company's earnings are distorted by acquisition-related charges and integration costs. The forward P/E of 47.86 appears expensive, but it may not reflect normalized earnings potential if the acquisition delivers synergies. A better metric is EV/EBITDA, which at 15.86 forward is more comparable to peers like DXPE (17.58) and MSM (18.31), suggesting the market is pricing in a recovery. Investors should focus on EBITDA margins and cash flow conversion rather than P/E to assess value.