NOW Stock Analysis, Valuation (NYSE:DNOW)

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$14.08 $0.13 (0.93%) DNOW stock closing price Jul 17, 2018 (Closing)

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 2018 Q1 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 a debt/equity ratio of 0.15, NOW is comparatively less leveraged than its peers in the Oils-Energy sector.
  • The lower PS ratio 0.5 for DNOW stock versus Oils-Energy sector average of 1.7 is a positive for the company.

Should you sell DNOW stock?

  • Over the last twelve months, NOW posted an average operating loss margin of -0.47.
  • NOW registered an average TTM Net loss of -1%.
  • Operating cash flows are negative.
  • The lack of profits renders the PE ratio useless for DNOW stock.
  • -0.7's negative ROIC of -0.7 indicates operational inefficiency.
  • NOW has a negative return on equity of -2.3. This indicates that the firm is inefficient at generating profits.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -4.1.

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.