IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
© 2026 Blank Capital Research. All rights reserved. System Version: Aegis V8 (God Mode).
Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2010
Positioning
Market Dominance
Manufacturing
Machinery
$1.6B
David A. Cherechinsky
NOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and industrial manufacturing operations in the United States, Canada, and internationally. The company also offers original equipment manufacturer equipment, including pumps, generator sets, air and gas compressors, dryers, blowers, mixers, and valves; and mill supplies, tools, safety supplies, and personal protective equipment.
Headcount
2.4K
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = DNOW ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$DNOW DNOW Inc. | 50 | 64 | 73 | 33 | 28.6x | 20.8x | 7.3% | 5.2% | 22.8% | 4.8% | 3.5% | 0.2% | 0.0% | 40.0x | $1.6B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
DNOW Inc. (DNOW) receives a "Hold" rating with a composite score of 50.0/100. It ranks #2010 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
Sign in to join the discussion.
HQ Base
Houston, Texas
Lagging peers — losers tend to keep underperforming
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for DNOW.
View All RatingsROE proxy 7.3% (sector -1.9%)
GM 23% vs sector 44%, OM 5% vs sector 3%
Capital turnover N/A
Rev growth 0%, 10yr history
Interest coverage N/A, Net debt/EBITDA -8.1x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate DNOW Inc. (DNOW) as a Hold with a composite score of 50.0/100 at a current price of $11.87. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
DNOW Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 50.0/100 places it at rank #2010 in our full universe.
No Moat
Low
Poor
Undervalued
Value factor score of 73 suggests attractive pricing.
Stable competitive position in a defensive sector.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
DNOW Inc. represents a hold based on multi-factor quantitative performance.
Our model assigns DNOW Inc. a Hold rating, with a composite score of 50.0/100 and 3 out of 5 stars. Ranked #2010 of 7,333 stocks, DNOW presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 64/100, DNOW shows adequate but unremarkable business quality. The company reports a return on equity of 7.3% (sector avg: -1.9%), gross margins of 22.8% (sector avg: 44.1%), net margins of 3.5% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
DNOW carries a solid value score of 73/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 28.56x, an EV/EBITDA of 20.82x, a P/B ratio of 2.07x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
DNOW Inc.'s investment score of 39/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 0.2% vs. a sector average of 6.7% and a return on assets of 5.2% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
DNOW is currently showing below-average momentum at 33/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 0.2% year-over-year, while a beta of 1.05 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 59/100, DNOW exhibits average financial resilience. Key stability metrics include a beta of 1.05 and a debt-to-equity ratio of 40.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
DNOW Inc.'s short interest score of 37/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 40.00x), small-cap liquidity risk. At $1.6B (small-cap), DNOW carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
DNOW Inc. is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2010 of 7,333 overall (73rd percentile). Key comparisons include ROE of 7.3% exceeding the -1.9% sector median and operating margins of 4.8% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While DNOW currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Upgrade catalyst
Momentum (33) is the limiting factor — improvement here would lift the composite score most.
EV/EBITDA 82% ABOVE SECTOR MEDIAN
ROE 482% BELOW SECTOR MEDIAN
Gross Margin 48% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Stifel has lowered its price target for Now Inc (NYSE:DNOW) to $16 from $18, citing ongoing ERP implementation headwinds at MRC Global’s U.S. operations. Despite a recent earnings miss and a 19.1% drop in MRC Global shares, Stifel maintains a Buy rating, viewing the ERP issues as transitory and the acquisition of MRC positively due to expected long-term growth and cost synergies.
Texas Capital Securities initiated coverage on Now Inc (NYSE:DNOW) with a Buy rating and a $19.00 price target. The company, a global distributor of energy and industrial equipment, recently completed the acquisition of MRC Global, strengthening its market position. Analysts anticipate solid growth and cash flow generation, with InvestingPro confirming the company's strong financial health.
Texas Capital Securities initiated coverage on Now Inc (NYSE:DNOW) with a Buy rating and a $19.00 price target, identifying it as the largest global distributor of energy and industrial equipment. The firm highlighted the company's scale, digital offerings, and automation capabilities as key advantages, expecting solid growth and cash flow generation. This comes amidst Now Inc's recent acquisition of MRC Global and a recent upgrade to Positive by Susquehanna.
Stifel has reiterated its Buy rating on Now Inc (NYSE:DNOW) stock and maintained its $18 price target, citing strong financial health, potential value generation from the merger with MRC, and flexible balance sheet optionality. This decision follows positive meetings with Now Inc's CFO and IR, and the company recently surpassed Q2 2025 earnings and revenue forecasts, further supporting the optimistic outlook.
Now Inc (NYSE: DNOW) reported strong Q4 2024 earnings, surpassing analyst expectations with an EPS of $0.25 and revenue of $571 million. The company's stock surged by 19.24% following the announcement, driven by robust performance, significant free cash flow, and a new $160 million share repurchase authorization. Now Inc highlighted strategic expansions in water management and energy evolution sectors, expecting continued growth despite anticipated market activity declines.