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DNOW Inc.

DNOWIndustrialsNASDAQ

Industrial Distribution

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Financials · Annual
Revenue
$2.82B
+18.8% YoY
Net Income
-$89.0M
-214.1% YoY
EBITDA
-$29.0M
-119.5% YoY
Free Cash Flow
-$723.4M

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About DNOW Inc.

DNOW Inc. distributes pipe, valves, fittings, and pumps in the United States, Canada, and internationally. The $2.33B market capitalization puts DNOW squarely in mid-cap range for its industry. The company offers flanges, gaskets, fasteners, electrical, instrumentation, artificial lift, and pumping systems, process and production equipment, production measurement technology, maintenance, repair and operating consumables (MRO), and general and specialty products; personal protective equipment; and mill, tools, safety supplies, as well as vapor recovery systems under EcoVapo brand.

Key stats
Market Cap$2.33B
Fwd P/E13.56
EPS$-1.19
Beta0.85
52W Change-11.2%
ROE-9.4%
Analysis

DNOW Inc. carries $737.0M in total debt against $116.0M in cash reserves — debt is roughly 6.4x the cash position. Managing this leverage effectively will be important for long-term financial stability. The company is burning cash, with free cash flow at -$723.4M. This typically occurs when a company is investing aggressively in growth, but sustained cash burn can strain the balance sheet. ROE of -9.4% points to negative capital efficiency, indicating how much profit the company produces per dollar of shareholder equity. ROA of 1.9% is on the lower side, which is common in asset-heavy industries. Revenue has grown from $2.14B (2022) to $2.82B (2025), reflecting a 32% increase over the period.

Debt significantly exceeds cash reserves, which means the company's financial flexibility could be constrained during economic downturns. Negative free cash flow means the company is currently spending more than it generates, which may require future fundraising or debt if the trend continues. No single metric tells the full story. Reviewing DNOW's risk profile alongside its fundamentals and technical indicators provides a more complete picture.

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