NOW Stock Analysis, Valuation (NYSE:DNOW)

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$16.69 $0.12 (0.72%) DNOW stock closing price Sep 19, 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 2.4/5

Amigobulls DNOW stock analysis relies on business fundamentals such as NOW revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 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?

  • NOW has a lower debt burden than its peers in the Oils-Energy sector, with a debt/equity ratio of 0.15.
  • DNOW stock is trading at a favorable price to sales multiple of 0.6 as against the Oils-Energy sector average multiple of 1.7.

Should you sell DNOW stock?

  • NOW reported an average operating margin of -0.47 over the Last Twelve Months (LTM).
  • NOW posted an average Net loss of -1% in the last twelve months.
  • The company has negative cash flow from operations.
  • DNOW stock is trading at a PE ratio of 192.3, which is worse than the sector average multiple of 20.6.
  • NOW has a negative ROIC (Return on Invested Capital) of -0.7.
  • NOW has a negative ROE (Return On Equity) of -2.3, indicating the company is not profitable.
  • NOW has a negative FCF (Free Cash Flow) 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.