NYSE:DNOW

Stock Analysis Report

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Executive Summary

NOW 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.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has NOW's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DNOW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.1%

DNOW

0.3%

US Trade Distributors

2.3%

US Market


1 Year Return

-38.8%

DNOW

0.8%

US Trade Distributors

6.7%

US Market

Return vs Industry: DNOW underperformed the US Trade Distributors industry which returned 0.8% over the past year.

Return vs Market: DNOW underperformed the US Market which returned 6% over the past year.


Shareholder returns

DNOWIndustryMarket
7 Day0.1%0.3%2.3%
30 Day-4.4%-7.1%-0.7%
90 Day48.3%19.9%17.1%
1 Year-38.8%-38.8%2.8%0.8%9.0%6.7%
3 Year-45.9%-45.9%20.6%14.9%36.7%27.8%
5 Year-55.2%-55.2%28.7%19.3%65.2%46.9%

Price Volatility Vs. Market

How volatile is NOW's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NOW undervalued compared to its fair value and its price relative to the market?

1.2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DNOW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DNOW's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DNOW is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: DNOW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DNOW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DNOW is good value based on its PB Ratio (1.2x) compared to the US Trade Distributors industry average (1.3x).


Next Steps

Future Growth

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

67.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNOW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DNOW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DNOW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DNOW's revenue (0.9% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: DNOW's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DNOW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NOW performed over the past 5 years?

27.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNOW is currently unprofitable.

Growing Profit Margin: DNOW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DNOW is unprofitable, but has reduced losses over the past 5 years at a rate of 27.4% per year.

Accelerating Growth: Unable to compare DNOW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DNOW is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-9.9%).


Return on Equity

High ROE: DNOW has a negative Return on Equity (-58.07%), as it is currently unprofitable.


Next Steps

Financial Health

How is NOW's financial position?


Financial Position Analysis

Short Term Liabilities: DNOW's short term assets ($1.0B) exceed its short term liabilities ($385.0M).

Long Term Liabilities: DNOW's short term assets ($1.0B) exceed its long term liabilities ($43.0M).


Debt to Equity History and Analysis

Debt Level: DNOW is debt free.

Reducing Debt: DNOW has no debt compared to 5 years ago when its debt to equity ratio was 7%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable DNOW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DNOW is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 13.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DNOW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DNOW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DNOW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DNOW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DNOW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Dave Cherechinsky (56yo)

0.083

Tenure

US$1,527,802

Compensation

Mr. David A. Cherechinsky, also known as Dave, serves as Director at NOW Inc. since 2020. He serves as Chief Executive Officer and President at NOW Inc since June 01, 2020. He served as Chief Financial Off ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD1.53M) is below average for companies of similar size in the US market ($USD3.16M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Cherechinsky
CEO, President & Director0.083yrUS$1.53m0.13% $1.2m
Richard Alario
Executive Vice Chairman & Director0.083yrUS$3.44m0.036% $331.8k
Mark Johnson
Senior VP & CFO0.083yrUS$696.60k0.022% $202.2k
Raymond Chang
VP, General Counsel & Secretary6.42yrsUS$1.28m0.16% $1.4m
Kelly Munson
Chief Administrative & Information Officer0.50yrno datano data
Brad Wise
Vice President of Marketing & Investor Relationsno datano datano data
Stuart Piper
Senior Vice President of Sales0.50yrno datano data
Scott Hauck
Executive Vice President of Digital Strategy0.50yrno datano data
Dan Pratt
Senior Vice President of Energy Centers0.50yrno datano data
Toby Eoff
President of Process Solutions3.75yrsno datano data

0.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: DNOW's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Cherechinsky
CEO, President & Director0.083yrUS$1.53m0.13% $1.2m
Richard Alario
Executive Vice Chairman & Director0.083yrUS$3.44m0.036% $331.8k
Rodney Eads
Independent Director6.17yrsUS$233.99k0.056% $520.2k
Paul Coppinger
Independent Director2.58yrsUS$225.99k0.036% $327.6k
James Crandell
Independent Director6.17yrsUS$215.99k0.056% $518.0k
Terry Bonno
Independent Director6.17yrsUS$221.49k0.054% $496.1k
J. Richards
Independent Chairman & Lead Director2.92yrsUS$331.49k0.069% $632.8k
Galen Cobb
Independent Director6.17yrsUS$221.49k0.052% $475.9k

4.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: DNOW's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NOW Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NOW Inc.
  • Ticker: DNOW
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$922.562m
  • Shares outstanding: 109.31m
  • Website: https://www.distributionnow.com

Number of Employees


Location

  • NOW Inc.
  • 7402 North Eldridge Parkway
  • Houston
  • Texas
  • 77041
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DNOWNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2014
DNOW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 2014
11NDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2014
0K9JLSE (London Stock Exchange)YesCommon StockGBUSDMay 2014

Biography

NOW 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 machine, cutting, power, and hand tools; original equipment manufacturer equipment, including pumps, generator sets, air and gas compressors, dryers, and blowers and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support. In addition, it provides supply chain and materials management solutions that include procurement, inventory, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting. The company 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 23:55
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.