# DNOW Inc. (DNOW)

> Source: Nexqual · https://nexqual.com/DNOW · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, DNOW Inc. (DNOW), nexqual.com/DNOW" · informational, not investment advice.

**Price:** USD 15.41 (-4.29% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 16.1 · day 14.96–16.06 · 52w 10.94–17.26 · market cap $2.79B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $4.08B, net income -$201M (-4.9% margin), free cash flow $136M (SEC filings).
- 4 of 80 tracked superinvestors hold DNOW (13F, Q2 2026): 0 new, 2 added, 2 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 3 Form 4 filings, $7.5M; 3 not under a Rule 10b5-1 plan ($7.5M); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 2.25 on a 1–5 scale) (4 analysts), mean target USD 18.75 (range 18–19).
- Total return with dividends: 1Y +1.6% vs S&P 500 +14.9%; 5Y +101.4% vs S&P 500 +80.3%.
- Next earnings: 2026-11-04, EPS estimate USD 0.15, revenue estimate $1.35B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.63B | $2.14B | $2.32B | $2.37B | $2.82B | $4.08B |
| Gross profit | $357M | $506M | $539M | $531M | $478M | — |
| Operating income | $9.0M | $131M | $144M | $109M | -$93.0M | -$204M |
| Net income | $5.0M | $128M | $250M | $78.0M | -$89.0M | -$201M |
| EPS (diluted) | $0.05 | $1.13 | $2.27 | $0.71 | -$0.76 | — |
| Free cash flow | $25.0M | -$9.0M | $171M | $289M | $134M | $136M |
| Gross margin | 21.9% | 23.7% | 23.2% | 22.4% | 17.0% | — |
| Operating margin | 0.6% | 6.1% | 6.2% | 4.6% | -3.3% | -5.0% |
| Net margin | 0.3% | 6.0% | 10.8% | 3.3% | -3.2% | -4.9% |
| Revenue growth | +0.8% | +30.9% | +8.7% | +2.2% | +18.8% | — |
| Cash + short-term investments | $313M | $212M | $299M | $256M | $164M | — |
| Total debt | — | — | — | $0K | $411M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/S 0.7x · EV/Sales 0.8x · P/FCF 20.5x · P/B 1.3x · FCF yield 4.88% · Earnings yield -7.21% · Buyback yield (TTM) 3.05% · Net debt $360M · EV $3.15B
P/E at fiscal year-ends: Dec 2024 17.9x, Dec 2023 4.9x.

## Superinvestors (SEC 13F-HR, Q2 2026)
4 of 80 tracked investors hold DNOW. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Seth Klarman | Baupost Group | 0.67% | $36.2M | Reduced -23.1% |
| Greenhaven Associates |  | 0.65% | $56.3M | Added +426.8% |
| Richard Pzena | Pzena Investment Management | 0.11% | $37.5M | Reduced -6.5% |
| First Eagle Investment | First Eagle Investment Management | 0.01% | $7.8M | Added +69.6% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 3 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-08-10 | Chang Raymond W | VP and General Counsel | 76,238 | $1.3M | 17.5% | No | Too little history (no open-market trades in 2023 or 2025) |
| 2026-08-10 | Cherechinsky David A | President and CEO | 256,142 | $4.3M | 18% | No | Too little history (no open-market trades in 2023 or 2025) |
| 2026-08-10 | Johnson Mark B | See Remarks | 112,841 | $1.9M | 31.1% | No | Too little history (no open-market trades in 2023 or 2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 2.25 on a 1–5 scale), 4 analysts; mean target USD 18.75 (low 18, high 19).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-09-10 | Freedom Broker | Downgrade | Buy → Hold | $18 |
| 2026-08-10 | DA Davidson | Target raised | Buy | $17 → $19 |
| 2026-08-07 | Susquehanna | Target raised | Positive | $16 → $19 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +1.6% | +101.4% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +1.6% | +15.0% |
| Volatility (annualized) | 40.9% | 45.0% |
| Max drawdown | -34.1% (Feb 2026→Mar 2026) | -35.2% (Feb 2023→May 2023) |

## Peers (Industrial Distribution)
REZI (Resideo Technologies, Inc.) USD 17.79 +1.77% · DXPE (DXP Enterprises, Inc.) USD 157.66 -11.20% · SITE (SiteOne Landscape Supply, Inc.) USD 103.17 +5.87% · GIC (Global Industrial Company) USD 44.91 +0.07% · DSGR (Distribution Solutions Group, I) USD 35.07 +0.06% · XMTR (Xometry, Inc.) USD 89.16 +0.25%

## More
Full page: https://nexqual.com/DNOW · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Upstream | $508.0M | 38.9% | +23.3% |
| Gas Utilities | $310.0M | 23.7% | +2483.3% |
| Midstream | $272.0M | 20.8% | +71.1% |
| Downstream & Industrial | $217.0M | 16.6% | +382.2% |
| Total revenue | $1.31B | 100% | — |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $1.11B | 84.9% | +110.0% |
| International | $151.0M | 11.6% | +190.4% |
| Canada | $47.0M | 3.6% | -2.1% |
| Total revenue | $1.31B | 100% | — |

## Customer concentration

Period ended 2025-12-31: 10% of revenue from unnamed direct customers (10-K, filed 2026-02-26).

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.15 | $0.11 | +31.6% | $1.35B | 5 |
| Next quarter (ends 2026-12-31) | $0.07 | $0.10 | -35.6% | $1.22B | 5 |
| Current fiscal year (ends 2026-12-31) | $0.35 | $0.32 | +8.8% | $5.07B | 5 |
| Next fiscal year (ends 2027-12-31) | $0.82 | $0.85 | -2.6% | $5.42B | 5 |