DNOW Inc. Common Stock (DNOW)

FairStock Score: 51/100 — MIXED

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.34, providing financial flexibility
• Revenue growth of 68.0% demonstrates strong top-line momentum

Concerns

• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 1.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

DNOW Inc. Common Stock is a small-cap industrials company valued at $2.3 billion. Revenue stands at $3.4 billion, though the company is currently unprofitable. From a quality standpoint, DNOW shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.0 warrants caution. On valuation, the stock is 3.3% FCF yield. Growth dynamics show revenue growing at 68.0% and profit growth of -800.0%. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

DNOW's 68% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Without a clear path to profitability, continued cash burn forces either dilutive equity raises or debt accumulation that destroys shareholder value. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer