DNOW Inc. Common Stock (DNOW)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at DNOW as a distributor of pipe, valves, fittings, and pumps, where scale and customer relationships matter but true pricing power is usually modest. The record is uneven. In fiscal 2023, net income was $250.0M on $2.3B revenue. By fiscal 2024, net income fell to $78.0M on $2.4B revenue. In fiscal 2025, revenue rose to $2.8B but net income turned to a loss of $89.0M. The latest filed quarter, fiscal Q2 2026, showed $1.3B revenue and a net loss of $21.0M. FairStock's Lynch category calls it a turnaround because of a loss in the latest year after earlier profits. The balance sheet is not stretched: debt-to-equity is 0.31, and trailing free cash flow was $136.0M, a 4.9% FCF yield. FairStock's Piotroski F-Score is 7/9, which suggests some improving fundamentals, while its Altman Z-Score of 1.34 signals financial-risk concerns. At the 2026-10-13 close of $15.37, the FairStock P/B is 1.33, but the P/E is negative and ROE is -11.60%; ROCE is only 1.69%. The market is not paying a premium multiple on book, but a Graham investor wants a margin of safety in earnings power, and there is little of that today. If customer demand and margins normalize, the asset base could produce decent cash. If losses persist, book value may erode and the low multiple could be a value trap.

In plain English: DNOW sells pipes, valves, pumps, and other industrial supplies to industrial and energy customers. The business is currently weak on profits: sales have grown, but fiscal 2025 and the latest fiscal quarter both showed losses. At the 2026-10-13 close of $15.37, the stock trades near book value and below its 52-week high, which may look inexpensive, but current losses mean the price is not clearly supported by earnings.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer