DNOWDNOW Inc.
Is the business good?
More warning than reassurance: 3 of 9 health tests passed and margins compressing.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DNOW?
DNOW Inc. earns −6.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 16 points below what the capital costs: growth destroys value
- Operating margin
- −5.0%
Operating margin · Industrial Distribution median 8.3% · 12 months to Q2 2026
- Share count, year on year
- +72%
Share count, year on year · shareholders own a smaller slice than a year ago
- Gross margin
- 15%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | −26% |
| FY2021 | 0.55% |
| FY2022 | 6.1% |
| FY2023 | 6.2% |
| FY2024 | 4.6% |
| FY2025 | −3.3% |
Details›
- Gross margin12 months to Q2 2026
- 15%
- Operating margin12 months to Q2 2026
- −5.0%
- Net margin12 months to Q2 2026
- −4.9%
- Free cash flow margin
- 3.3%
- Revenue, trailing twelve months
- $4.08B
- Free cash flow, trailing twelve months
- $136M
- Net income, trailing twelve months
- −$201M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −6.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.