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NOW

NYSE:DNOW
Snowflake Description

Excellent balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DNOW
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

NOW Inc. distributes energy and industrial products in the United States, Canada, and internationally. The last earnings update was 79 days ago. More info.


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  • NOW has significant price volatility in the past 3 months.
DNOW Share Price and Events
7 Day Returns
-10.7%
NYSE:DNOW
-2%
US Trade Distributors
-0.3%
US Market
1 Year Returns
-15%
NYSE:DNOW
-13.7%
US Trade Distributors
3.9%
US Market
DNOW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NOW (DNOW) -10.7% -13.8% -22.1% -15% -36.3% -63.8%
US Trade Distributors -2% -1.8% -8% -13.7% 26.4% 7.5%
US Market -0.3% 2.3% 2.3% 3.9% 36.7% 41.8%
1 Year Return vs Industry and Market
  • DNOW underperformed the Trade Distributors industry which returned -13.7% over the past year.
  • DNOW underperformed the Market in United States of America which returned 3.9% over the past year.
Price Volatility
DNOW
Industry
5yr Volatility vs Market

DNOW Value

 Is NOW undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NOW to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NOW.

NYSE:DNOW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:DNOW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.908 (1 + (1- 21%) (14.82%))
1.009
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.009 * 5.96%)
8.75%

Discounted Cash Flow Calculation for NYSE:DNOW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NOW is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:DNOW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.75%)
2020 61.22 Analyst x6 56.29
2021 92.70 Analyst x3 78.39
2022 113.00 Analyst x2 87.87
2023 125.00 Analyst x1 89.38
2024 134.85 Est @ 7.88% 88.67
2025 143.40 Est @ 6.34% 86.71
2026 150.93 Est @ 5.25% 83.93
2027 157.72 Est @ 4.5% 80.65
2028 163.98 Est @ 3.97% 77.10
2029 169.88 Est @ 3.6% 73.45
Present value of next 10 years cash flows $802.45
NYSE:DNOW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $169.88 × (1 + 2.73%) ÷ (8.75% – 2.73%)
$2,900.91
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,900.91 ÷ (1 + 8.75%)10
$1,254.33
NYSE:DNOW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $802.45 + $1,254.33
$2,056.78
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,056.78 / 108.72
$18.92
NYSE:DNOW Discount to Share Price
Calculation Result
Value per share (USD) From above. $18.92
Current discount Discount to share price of $12.04
= -1 x ($12.04 - $18.92) / $18.92
36.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price NOW is available for.
Intrinsic value
36%
Share price is $12.04 vs Future cash flow value of $18.92
Current Discount Checks
For NOW to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • NOW's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • NOW's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NOW's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NOW's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:DNOW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.62
NYSE:DNOW Share Price ** NYSE (2019-07-19) in USD $12.04
United States of America Trade Distributors Industry PE Ratio Median Figure of 42 Publicly-Listed Trade Distributors Companies 16.72x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NOW.

NYSE:DNOW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:DNOW Share Price ÷ EPS (both in USD)

= 12.04 ÷ 0.62

19.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NOW is overvalued based on earnings compared to the US Trade Distributors industry average.
  • NOW is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does NOW's expected growth come at a high price?
Raw Data
NYSE:DNOW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
23%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 33 Publicly-Listed Trade Distributors Companies 0.98x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:DNOW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.48x ÷ 23%

0.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NOW is good value based on expected growth next year.
Price based on value of assets
What value do investors place on NOW's assets?
Raw Data
NYSE:DNOW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $11.45
NYSE:DNOW Share Price * NYSE (2019-07-19) in USD $12.04
United States of America Trade Distributors Industry PB Ratio Median Figure of 53 Publicly-Listed Trade Distributors Companies 1.56x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.8x
NYSE:DNOW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:DNOW Share Price ÷ Book Value per Share (both in USD)

= 12.04 ÷ 11.45

1.05x

* Primary Listing of NOW.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NOW is good value based on assets compared to the US Trade Distributors industry average.
X
Value checks
We assess NOW's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. NOW has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DNOW Future Performance

 How is NOW expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NOW expected to grow at an attractive rate?
  • NOW's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • NOW's earnings growth is expected to exceed the United States of America market average.
  • NOW's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:DNOW Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:DNOW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 23%
NYSE:DNOW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 4.9%
United States of America Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 15.4%
United States of America Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:DNOW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:DNOW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,909 139 154 1
2022-12-31 3,616 124 126 2
2021-12-31 3,407 102 103 3
2020-12-31 3,259 68 70 11
2019-12-31 3,113 93 54 11
NYSE:DNOW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 3,148 83 67
2018-12-31 3,127 73 51
2018-09-30 3,032 -10 32
2018-06-30 2,907 -66 4
2018-03-31 2,781 -124 -27
2017-12-31 2,648 -115 -52
2017-09-30 2,517 -58 -120
2017-06-30 2,340 6 -167
2017-03-31 2,190 125 -194
2016-12-31 2,107 235 -234
2016-09-30 2,213 266 -412
2016-06-30 2,446 398 -581

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NOW's earnings are expected to grow significantly at over 20% yearly.
  • NOW's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:DNOW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from NOW Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DNOW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.31 1.31 1.31 1.00
2022-12-31 1.09 1.09 1.09 1.00
2021-12-31 0.90 0.90 0.90 1.00
2020-12-31 0.64 0.70 0.60 5.00
2019-12-31 0.51 0.59 0.46 5.00
NYSE:DNOW Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.62
2018-12-31 0.47
2018-09-30 0.30
2018-06-30 0.04
2018-03-31 -0.25
2017-12-31 -0.48
2017-09-30 -1.11
2017-06-30 -1.55
2017-03-31 -1.80
2016-12-31 -2.18
2016-09-30 -3.84
2016-06-30 -5.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if NOW will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess NOW's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NOW has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DNOW Past Performance

  How has NOW performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NOW's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NOW's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • NOW has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • NOW has become profitable in the last year making it difficult to compare the US Trade Distributors industry average.
Earnings and Revenue History
NOW's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NOW Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DNOW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 3,148.00 67.00 551.00
2018-12-31 3,127.00 51.00 557.00
2018-09-30 3,032.00 32.00 550.00
2018-06-30 2,907.00 4.00 549.00
2018-03-31 2,781.00 -27.00 548.00
2017-12-31 2,648.00 -52.00 542.00
2017-09-30 2,517.00 -120.00 549.00
2017-06-30 2,340.00 -167.00 548.00
2017-03-31 2,190.00 -194.00 550.00
2016-12-31 2,107.00 -234.00 565.00
2016-09-30 2,213.00 -412.00 584.00
2016-06-30 2,446.00 -581.00 597.00
2016-03-31 2,695.00 -555.00 608.00
2015-12-31 3,010.00 -502.00 619.00
2015-09-30 3,372.00 -238.00 646.00
2015-06-30 3,689.00 19.00 656.00
2015-03-31 3,891.00 64.00 655.00
2014-12-31 4,105.00 115.00 638.00
2014-09-30 4,140.00 134.00 606.00
2014-06-30 4,183.00 141.00 586.00
2014-03-31 4,301.00 147.00 579.00
2013-12-31 4,296.00 147.00 573.00
2012-12-31 3,414.00 108.00 443.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • NOW has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NOW used its assets less efficiently than the US Trade Distributors industry average last year based on Return on Assets.
  • NOW has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess NOW's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NOW has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DNOW Health

 How is NOW's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NOW's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NOW is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NOW's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NOW's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 9.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NOW Company Filings, last reported 3 months ago.

NYSE:DNOW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,245.00 124.00 87.00
2018-12-31 1,214.00 132.00 116.00
2018-09-30 1,217.00 170.00 91.00
2018-06-30 1,189.00 195.00 91.00
2018-03-31 1,192.00 175.00 80.00
2017-12-31 1,185.00 162.00 98.00
2017-09-30 1,187.00 163.00 99.00
2017-06-30 1,176.00 128.00 97.00
2017-03-31 1,175.00 82.00 102.00
2016-12-31 1,183.00 65.00 106.00
2016-09-30 1,268.00 145.00 131.00
2016-06-30 1,322.00 180.00 136.00
2016-03-31 1,368.00 55.00 131.00
2015-12-31 1,403.00 108.00 90.00
2015-09-30 1,658.00 120.00 126.00
2015-06-30 1,922.00 80.00 114.00
2015-03-31 1,922.00 135.00 122.00
2014-12-31 1,966.00 0.00 195.00
2014-09-30 1,973.00 0.00 166.00
2014-06-30 1,958.00 0.00 236.00
2014-03-31 1,904.00 0.00 175.00
2013-12-31 1,802.00 0.00 101.00
2012-12-31 1,971.00 0.00 138.00
  • NOW's level of debt (10.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 10.6% today).
  • Debt is well covered by operating cash flow (62.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.1x coverage).
X
Financial health checks
We assess NOW's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NOW has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DNOW Dividends

 What is NOW's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from NOW dividends.
If you bought $2,000 of NOW shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate NOW's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate NOW's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:DNOW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:DNOW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as NOW has not reported any payouts.
  • Unable to verify if NOW's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of NOW's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as NOW has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess NOW's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NOW afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NOW has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DNOW Management

 What is the CEO of NOW's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Robert Workman
COMPENSATION $5,195,948
AGE 50
TENURE AS CEO 5.4 years
CEO Bio

Mr. Robert R. Workman has been the Chief Executive Officer and President of Now Inc., since February 2014. Mr. Workman has been the President of Distribution & Transmission of National Oilwell Varco Inc. since October 2011. Mr. Workman started with National Oilwell Varco in 1991 served as Vice President of Operations for its Distribution Services Group from July 2000 to December 2000. He served as the President of National-Oilwell, Inc.'s Distribution Services Group since February 2001. From 1997 to 2001 Mr. Workman served in various management capacities for that group, most recently as Vice President of Operations. He has been a Director of Now Inc. since May 2014. He also serves as the Chairman of the Petroleum Equipment Suppliers Association and a member of the IPAA, IADC and API.

CEO Compensation
  • Robert's compensation has increased in line with NOW recently becoming profitable.
  • Robert's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the NOW management team in years:

5.4
Average Tenure
50
Average Age
  • The average tenure for the NOW management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Robert Workman

TITLE
President
COMPENSATION
$5M
AGE
50
TENURE
5.4 yrs

David Cherechinsky

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
55
TENURE
1.4 yrs

Mark Johnson

TITLE
VP, Corporate Controller & Chief Accounting Officer
COMPENSATION
$882K
AGE
36
TENURE
1.4 yrs

Raymond Chang

TITLE
VP, General Counsel & Secretary
COMPENSATION
$2M
AGE
48
TENURE
5.4 yrs

Dan Molinaro

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
72

Craig Ballinger

TITLE
Chief Administrative & Information Officer
TENURE
5.5 yrs

Brad Wise

TITLE
Vice President of Marketing & Investor Relations

Burk Ellison

TITLE
Chief Sales Officer

Phillip Goodwin

TITLE
President of Supply Chain Services

Scott Hauck

TITLE
President of Energy Centers
Board of Directors Tenure

Average tenure and age of the NOW board of directors in years:

5.2
Average Tenure
62.5
Average Age
  • The tenure for the NOW board of directors is about average.
Board of Directors

J. Richards

TITLE
Chairman & Lead Director
COMPENSATION
$265K
AGE
59
TENURE
1.8 yrs

Robert Workman

TITLE
President
COMPENSATION
$5M
AGE
50
TENURE
5.2 yrs

Dick Alario

TITLE
Independent Director
COMPENSATION
$226K
AGE
64
TENURE
5.2 yrs

Rodney Eads

TITLE
Independent Director
COMPENSATION
$234K
AGE
68
TENURE
5.2 yrs

Paul Coppinger

TITLE
Independent Director
COMPENSATION
$190K
AGE
57
TENURE
1.6 yrs

Terry Bonno

TITLE
Independent Director
COMPENSATION
$221K
AGE
61
TENURE
5.2 yrs

Galen Cobb

TITLE
Independent Director
COMPENSATION
$221K
AGE
65
TENURE
5.2 yrs

Jim Crandell

TITLE
Independent Director
COMPENSATION
$216K
AGE
65
TENURE
5.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess NOW's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NOW has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DNOW News

Simply Wall St News

Did You Manage To Avoid NOW's (NYSE:DNOW) Painful 60% Share Price Drop?

(NYSE:DNOW) share price is a whole 60% lower. … That would generally be considered a positive, so we are surprised to see the share price is down. … Other metrics may better explain the share price move.

Simply Wall St -

NOW (NYSE:DNOW) Has A Pretty Healthy Balance Sheet

NYSE:DNOW Historical Debt, July 4th 2019 A Look At NOW's Liabilities The latest balance sheet data shows that NOW had liabilities of US$475.0m due within a year, and liabilities of US$176.0m falling due after that. … Either way, since NOW does have more debt than cash, it's worth keeping an eye on its balance sheet. … Our View The good news is that NOW's demonstrated ability to convert EBIT to free cash flow delights us like a fluffy puppy does a toddler.

Simply Wall St -

Why You Should Care About NOW Inc.’s (NYSE:DNOW) Low Return On Capital

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for NOW: 0.063 = US$89m ÷ (US$1.9b - US$475m) (Based on the trailing twelve months to March 2019.) Therefore, NOW has an ROCE of 6.3%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

What Do Investors Need To Know About The Future Of NOW Inc.'s (NYSE:DNOW)?

With trailing-twelve-month net income at current levels of US$51m, the consensus growth rate suggests that earnings will decline to US$43m by 2020. … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of DNOW's earnings growth over these next few years. … NYSE:DNOW Past and Future Earnings, May 14th 2019 By 2022, DNOW's earnings should reach US$70m, from current levels of US$51m, resulting in an annual growth rate of 21%.

Simply Wall St -

NOW Inc. (NYSE:DNOW): What Does Its Beta Value Mean For Your Portfolio?

The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

An Intrinsic Calculation For NOW Inc. (NYSE:DNOW) Suggests It's 23% Undervalued

by taking the expected future cash flows and discounting them to their present value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Is It Too Late To Buy NOW Inc. (NYSE:DNOW) At Its April Price?

(NYSE:DNOW) is considered a high-growth stock, but its last closing price of $14.94 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Let’s look into this by assessing DNOW's expected growth over the next few years. … The excitement around NOW's growth potential is not unfounded

Simply Wall St -

Based On Its ROE, Is NOW Inc. (NYSE:DNOW) A High Quality Stock?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.043. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Investors Who Bought NOW (NYSE:DNOW) Shares A Year Ago Are Now Up 35%

(NYSE:DNOW) share price is 35% higher than it was a year ago, much better than the market return of around 1.0% (not including dividends) in the same period. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

Simply Wall St -

What Should Investors Know About NOW Inc.'s (NYSE:DNOW) Earnings Trajectory?

The latest earnings update NOW Inc. … (NYSE:DNOW) released in December 2018 … finally turned profitable

Simply Wall St -

DNOW Company Info

Description

NOW Inc. distributes energy and industrial products in the United States, Canada, and internationally. It offers consumable maintenance, repair, and operating supplies; and 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 other expendable items. The company also provides machine, cutting, power, and hand tools; OEM equipment including pumps, generator sets, air and gas compressors, dryers, blowers and valves; and warehouse and inventory management solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support. In addition, it offers supply chain and materials management solutions that include procurement, inventory and warehouse management, logistics, point of issue technology, project management, business process, and performance metrics reporting. The company offers its products under the DistributionNOW and Wilson Export brand names. It serves customers 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 incorporated in 2013 and is headquartered in Houston, Texas.

Details
Name: NOW Inc.
DNOW
Exchange: NYSE
Founded: 2013
$1,308,991,027
108,720,185
Website: http://www.distributionnow.com
Address: NOW Inc.
7402 North Eldridge Parkway,
Houston,
Texas, 77041,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE DNOW Common Stock New York Stock Exchange US USD 20. May 2014
DB 11N Common Stock Deutsche Boerse AG DE EUR 20. May 2014
LSE 0K9J Common Stock London Stock Exchange GB USD 20. May 2014
BMV DNOW * Common Stock Bolsa Mexicana de Valores MX MXN 20. May 2014
Number of employees
Current staff
Staff numbers
4,500
NOW employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 00:36
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.