/
DNOW Inc., ( DNOW or the Company ), headquartered in Houston, Texas, was incorporated in Delaware on November 22, 2013. On June 2, 2014, DNOW stock began regular trading on the New York Stock Exchange under the ticker symbol DNOW .
The business is unprofitable at the operating level (-3.30% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 18.8%, still solid. Margins contracted 7.9pp, which offsets some of the top-line progress.
Free cash flow declined 54% versus the prior year, cash generation momentum has weakened. ROIC dropped from 6.74% to -3.64%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$3.40B
▲ +18.8% YoY
Net Income (TTM)
-$156M
▼ -214.1% YoY
Op. Margin
-5.05%
▼ -7.9pp YoY
ROIC
-6.68%
▼ -10.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$53M
▼ -53.6% YoY
Op. Cash Flow (TTM)
$76M
▼ -48.0% YoY
Net Debt
$621M
Cash & Equiv.
$116M
5Y CAGR: +11.7%
5Y CAGR: -5.8%
Continue Research