NOW Inc. (DNOW) AI Stock Analysis

NOW Inc. distributes downstream energy and industrial products across the United States, Canada, and internationally. Operating under the DistributionNOW and DNOW brands through approximately 180 locations worldwide, the company serves petroleum refining, chemical processing, LNG terminals, power generation utilities, and industrial manufacturing. Its product catalog includes consumable maintenance, repair, and operating supplies, pipes, valves, fittings, flanges, gaskets, and fasteners. It also provides electrical products, artificial lift solutions, pumping systems, and OEM equipment like compressors and generators, complemented by supply chain management, procurement, warehouse logistics, and engineering consulting services.

NOW Inc. generated a 5-year revenue CAGR of 11.7% between FY2020 and FY2025. Annual revenue expanded from $1.63B in FY2021 to $2.32B in FY2023 and $2.82B in FY2025, which saw 18.8% growth. Operating margin declined from 6.0% in FY2023 and 4.8% in FY2024 to -0.6% in FY2025, while net income dropped to -$89.0M. Over the trailing twelve months, revenue reached $4.08B with an operating margin of 1.1% and a profit margin of -4.6%. In the latest quarter ended June 30, 2026, quarterly revenue surged 108.1% year-over-year and quarterly earnings grew 90.5%.

As of June 30, 2026, NOW Inc. held $114.0M in cash and short-term investments against total debt of $631.0M, resulting in net debt of $517.0M. Shareholders' equity was $2.10B across $3.82B in total assets. The company reported a current ratio of 2.14 and a debt-to-equity ratio of 0.30. In FY2025, operating cash flow reached $155.0M and free cash flow was $134.0M, funding $21.0M in capital expenditures and $37.0M in share buybacks.

At a last close of $15.68 on October 16, 2026, NOW Inc. has a market cap of $2.83B and an enterprise value of $3.36B. The stock trades at a forward P/E of 29.8x, compared to 17.2x for the median of its US-listed Industrials peers. Its EV/EBITDA of 8.9x and price-to-sales of 0.7x sit below peer medians of 13.9x and 1.5x, respectively. Over the trailing 1-year period, the stock gained 11.2% versus 16.8% for the S&P 500, and its 5-year return of 71.0% trailed the S&P 500 return of 83.0%.

Wall Street coverage consists of 3 Strong Buy ratings, 1 Hold rating, and zero Sell ratings. The mean price target is $18.75, representing upside of 19.6% from the last close of $15.68. For the fiscal year ending December 31, 2026, analysts estimate revenue of $5.07B and EPS of $0.35, representing a 59.8% decline in EPS. For the next fiscal year, 5 analysts project revenue of $5.42B and EPS of $0.82. The company beat EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for November 4, 2026.

This page is an AI-written research summary of NOW Inc. (DNOW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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