Is the business good?
How good a business is DNOW?
DNOW Inc. earns −5.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−5.3%
Return on invested capital · cost of capital 9.0% · 14 points below what the capital costs: growth destroys value
- Operating margin
- −5.1%
Operating margin · Industrial Distribution median 8.5% · 12 months to Q1 2026
- Share count, year on year
- +74%
Share count, year on year · shareholders own a smaller slice than a year ago
- Gross margin
- 16%
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 Q1 2026
- 16%
- Operating margin12 months to Q1 2026
- −5.1%
- Net margin12 months to Q1 2026
- −4.5%
- Free cash flow margin
- 1.6%
- Revenue, trailing twelve months
- $3.40B
- Free cash flow, trailing twelve months
- $53M
- Net income, trailing twelve months
- −$155M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −5.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.