NOW Inc (DNOW)
NYSEIndustrialsIndustrial - DistributionSnapshot 2026-09-04
$16.12+2.03%
Close 2026-09-04 · 1-day change
NYSEIndustrialsIndustrial - DistributionSnapshot 2026-09-04
QuarterlyIQ Insights · DNOW
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-09-04.
The screen ranks DNOW against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated weak grew net income 53% of the time over the next year (vs 58% for the rest of the cohort, n=6963).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Realize $70 million in annual cost synergies within three years post-merger through public company costs, corporate and IT systems, and operational and supply chain efficiencies.
Stated as a priority in 4 of last 4 quarters. The company reported annual merger cost synergies with first-year savings projected at $23 million, 35% above target, and maintains a $70 million three-year synergy commitment. Adjusted EBITDA improvements and integration progress in 2026-Q1 and Q2 reflect delivering on cost synergy initiatives.
“Adjusted EBITDA rose substantially reflecting stronger volumes and execution of integration and cost management initiatives.”
“We advanced the integration of our upstream and midstream operations, delivered sequential revenue growth and are beginning to see early traction from new data center related awards.”
“Annual merger cost synergies are ahead of plan, with first-year savings now projected at $23 million, or 35% above target, while maintaining our $70 million three-year synergy commitment.”
“We expect to create meaningful value for our combined business over time through synergy realization initiatives.”
Take targeted actions to resolve persistent challenges related to the U.S. MRC Global ERP system transition that went live in Q3 2025.
Stated as a priority in 3 of last 4 quarters. Management has repeatedly emphasized targeted actions to address ERP system transition challenges since Q4 2025. While operational efficiency and integration progress are noted, no specific quantitative milestones on ERP resolution are disclosed, indicating persistent focus with limited quantifiable delivery so far.
“We continue to take decisive steps to position DNOW for long-term success, advancing integration initiatives and driving operational efficiency.”
Drive revenue growth and improve adjusted EBITDA and cash flow through integration and operational execution post-merger.
Stated as a priority in 4 of last 4 quarters. Revenue increased from $959 million in 2025-Q4 to $1.3 billion in 2026-Q2, adjusted EBITDA rose from $39 million in 2026-Q1 to $60 million in 2026-Q2, and cash flow from operations improved from -$95 million to $133 million. The trajectory shows delivering growth and improved profitability post-merger.
“Revenue was $1,307 million, adjusted EBITDA was $60 million, and cash flow from operating activities was $133 million, a record second-quarter achievement.”
Return capital to shareholders through disciplined share repurchase programs while managing net debt leverage.
Stated as a priority in 3 of last 4 quarters. The company repurchased $75 million of shares in the first half of 2026, exceeding the prior 10 quarters combined. Net debt leverage ratio improved from 2.3x in 2026-Q1 to 1.7x in 2026-Q2, reflecting disciplined capital allocation and deleveraging, delivering on stated capital return and leverage management goals.
“Repurchased $25 million of common stock in Q2 2026 and $75 million year-to-date under the $160 million share repurchase program.”
DNOW forecasted its best full-year earnings in 2025, aiming for strong EBITDA results.
Over the trailing year it converted -0.74x of net income into operating cash flow.
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, real (inflation-adjusted) rates, Fed net liquidity (low R² over the window).
9 material management or governance events in the past 24 months, led by M&A activity. Historically, Industrials names rated stable grew net income 55% of the time over the next year (vs 58% for the rest of the cohort, n=2546).
Not investment advice. As of 2026-09-04.
“With respect to the ERP conversion, we are taking targeted, decisive actions to enhance system performance and drive operational efficiencies.”
“As we move into 2026, we have taken targeted actions to address persistent challenges related to the U.S. MRC Global ERP system transition.”
“Revenue was $1,183 million, adjusted EBITDA was $39 million, and cash used in operating activities was $95 million.”
“Revenue was $959 million, adjusted EBITDA was $61 million, and cash provided by operating activities was $83 million.”
“We expect 2025 to represent our fifth consecutive year of growth and forecast our best full-year earnings ever as a public company.”
“Repurchased $50 million of common stock under the $160 million share repurchase program.”
“Repurchased $37 million of common stock in 2025.”