NOW Stock Analysis, Valuation (NYSE:DNOW)

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$12.04 $0.22 (1.79%) DNOW stock closing price Apr 20, 2018 (Closing)
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NOW
Updated on : Apr 20, 2018
previous close
DNOW 12 (0%)
S&P 500 2670.1 (0%)
Closing Price On: Apr 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil Field Machines and equipment
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-1.6%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
162M
Debt/Equity Ratio:
 0.14
Compared to the industry
Cash Flow
Operating cash flow:
-$8M
Net Income:
-$3M
PROS      CONS
Low Debt Burden
PS Valuation
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
DNOW PS :
0.5
Industry PS :
1.7
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-3.4%
Return on Equity:
-4.4%
Free Cash Flow Margin:
1%
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NOW Stock Analysis

5 2

Take a look at Amigobulls NOW stock analysis video. This is our analyst opinion covering the buy and sell arguments for DNOW stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

NOW Inc Stock Rating 1.8/5

Amigobulls DNOW stock analysis relies on business fundamentals such as NOW revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 earnings. We compare NOW valuation with its sector peers to gauge relative attractiveness of DNOW stock. Our NOW stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy DNOW stock?

  • With its debt/equity ratio of  0.14, NOW has a lower debt burden when compared to the Oils-Energy average.
  • DNOW stock is trading at a favorable price to sales multiple of 0.5 as against the Oil Field Machines and equipment industry average multiple of 1.7.

Should you sell DNOW stock?

  • Over the last twelve months, NOW posted an average operating loss margin of -1.6%.
  • NOW posted an average Net loss of -2% in the last twelve months.
  • The lack of profits renders the PE ratio useless for DNOW stock.
  • The company has a negative Return on Invested Capital of -3.4%, which is a red flag.
  • NOW has a negative return on equity of -4.4%. This indicates that the firm is inefficient at generating profits.

Comments on this video and NOW stock

Amigobulls NOW stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of DNOW stock. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, NOW revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.