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Dnow

DNOW on NYSE. Dnow sells pipes, valves, fittings, and pumps to energy and industrial customers. Market value $2.9bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.

Should I look at this?

Good business, but not cheap right now

Why it could be worth it

What to watch out for

See cheaper Industrials stocks on the list

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to June 2026
4.7%fair

For every $100 of what the whole company costs, it produced $4.74 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
n/a

The filings do not give us enough to work this out.

Return on capital
five annual reports to December 2025
n/a

The filings do not give us enough to work this out.

Quality score: 72 of 100. Price score: 26 of 100. Our list needs 70 on quality and 60 on price.

$15.88 a share, 45% above its 1-year low

Over the past year the price has ranged from $10.94 to $17.26.

Pays no dividend

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

0.0
-0.0
0.2
0.3
0.1
0.1
2021202220232024202512 monthsto Jun '26
Revenue
$1.6bn$2.1bn$2.3bn$2.4bn$2.8bn
Operating margin
0.6%6.1%6.2%4.6%-3.3%
Debt to equity
n/an/an/a0.020.20
Shares outstanding
0.11bn0.11bn0.11bn0.11bn0.18bn

Health checks

  • Free cash flow positive4 of 5 years
  • Accounting looks honest (Beneish)Warning signs
  • Financial strength (Piotroski)3 of 9
  • Profit backed by cash (accruals)Yes
  • Debt0.20× equity
  • Revenue growth, five yearsStrong, 11.7% a year
  • Buying back its own sharesNo, 64% more shares since 2021

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $1.3 billion last quarter, up 108% on a year ago.
  • A loss of $21 million, after a profit of $14 million a year ago.
  • It loses 5 cents on each $1 of sales, after keeping 4 cents a year earlier.
  • Spare cash over the past 12 months: $136 million, down from $210 million.
  • 72% more shares than a year ago. Each share owns a bit less of the company.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$606m
December 2024$571m
March 2025$599m
June 2025$628m
September 2025$634m
December 2025$959m
March 2026$1.2bn
June 2026$1.3bn
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024$13m
December 2024Not reported
March 2025$21m
June 2025$14m
September 2025$25m
December 2025Not reported
March 2026-$44m
June 2026-$21m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
26 February 2026
Next quarterly (estimated, 10-Q)
5 November 2026

Who owns it

11 long-term investors we follow own it, down from 12 last quarter. 301 funds in all.

Jun '25
Dec '25
Jun '26

Sold out this quarter

Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

4 investors own more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 3 sold $7m.

  • Chang Raymond W
    VP and General Counsel
    Sold
    Date
    10 August 2026
    Shares
    76,238
    Price
    $16.98
    Value
    $1m
  • Cherechinsky David A
    President and CEO, Director
    Sold
    Date
    10 August 2026
    Shares
    256,142
    Price
    $16.73
    Value
    $4m
  • Johnson Mark B
    See Remarks
    Sold
    Date
    10 August 2026
    Shares
    112,841
    Price
    $16.79
    Value
    $2m

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the serious warning signs we check for were found. 1 thing worth knowing.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 26 Feb 2026, plus the 10-Q filed 6 Aug 2026 and 4 later 8-Ks.

  • Changed auditor

    Worth knowing

    The company changed its auditor (the firm that checks its books) in the last two years.

    “On the same date, the Committee approved the dismissal of Ernst & Young LLP (“EY”) as the Company’s independent registered public accounting firm, and the Company informed EY of such dismissal.”

    From an 8-K filed 23 May 2025: Change of auditor. Read it in the filing

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • Its accounts show patterns that sometimes come before companies have to correct past results (Beneish score).

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.