Latest Ratios: P/E Ratio -16.9x · EV/EBITDA N/A · ROE -5.3%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.5B | $1.6B | $1.4B | $1.2B | $1.4B | $944M | $786M | $1.2B | $1.3B | $1.2B | $2.2B |
| Enterprise Value | $2.0B | $2.1B | $1.2B | $969M | $1.2B | $663M | $446M | $1.1B | $1.3B | $1.3B | $2.1B |
| P/E Ratio → | -16.88 | — | 17.35 | 5.05 | 11.24 | 188.94 | — | — | 24.25 | — | — |
| P/S Ratio | 0.53 | 0.55 | 0.59 | 0.53 | 0.66 | 0.58 | 0.49 | 0.41 | 0.41 | 0.45 | 1.04 |
| P/B Ratio | 0.67 | 0.70 | 1.24 | 1.15 | 1.67 | 1.33 | 1.12 | 1.07 | 1.05 | 1.00 | 1.85 |
| P/FCF | 11.14 | 11.67 | 4.82 | 7.18 | — | 37.75 | 4.34 | 5.77 | 20.46 | — | 9.78 |
| P/OCF | 9.63 | 10.09 | 4.68 | 6.53 | — | 31.45 | 4.16 | 5.46 | 17.38 | — | 9.32 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.73 | 0.50 | 0.42 | 0.58 | 0.41 | 0.28 | 0.38 | 0.41 | 0.47 | 1.02 |
| EV / EBITDA | — | — | 8.03 | 5.84 | 8.26 | 20.71 | — | — | 11.27 | 139.16 | — |
| EV / EBIT | — | — | 9.92 | 6.92 | 8.78 | 41.41 | — | 24.70 | 17.60 | — | — |
| EV / FCF | — | 15.44 | 4.08 | 5.67 | — | 26.51 | 2.46 | 5.24 | 20.72 | — | 9.60 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.0% | 17.0% | 22.5% | 23.1% | 23.7% | 21.9% | 18.0% | 19.9% | 20.1% | 18.9% | 16.4% |
| Operating Margin | -2.9% | -2.9% | 4.8% | 6.0% | 6.1% | 0.6% | -25.9% | -2.8% | 2.3% | -1.5% | -10.5% |
| Net Profit Margin | -3.2% | -3.2% | 3.4% | 10.6% | 6.0% | 0.3% | -26.4% | -3.3% | 1.7% | -2.0% | -11.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -5.3% | -5.3% | 7.4% | 25.9% | 16.5% | 0.7% | -46.3% | -8.2% | 4.3% | -4.4% | -18.1% |
| ROA | -3.2% | -3.2% | 5.1% | 17.3% | 10.6% | 0.5% | -32.9% | -5.7% | 2.9% | -3.1% | -13.6% |
| ROIC | -3.3% | -3.3% | 9.9% | 14.2% | 17.8% | 1.7% | -45.3% | -5.5% | 4.4% | -2.6% | -13.0% |
| ROCE | -3.9% | -3.9% | 9.9% | 14.1% | 16.2% | 1.2% | -43.5% | -6.5% | 5.4% | -3.1% | -16.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.30 | 0.30 | 0.04 | 0.04 | 0.05 | 0.04 | 0.07 | 0.06 | 0.11 | 0.14 | 0.05 |
| Debt / EBITDA | — | — | 0.29 | 0.25 | 0.25 | 1.00 | — | — | 1.16 | 18.00 | — |
| Net Debt / Equity | — | 0.23 | -0.19 | -0.24 | -0.21 | -0.39 | -0.49 | -0.10 | 0.01 | 0.05 | -0.03 |
| Net Debt / EBITDA | — | — | -1.46 | -1.55 | -1.16 | -8.78 | — | — | 0.14 | 7.11 | — |
| Debt / FCF | — | 3.77 | -0.74 | -1.51 | — | -11.24 | -1.88 | -0.52 | 0.26 | — | -0.18 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.34 | 2.34 | 2.33 | 2.56 | 2.32 | 2.39 | 3.17 | 2.69 | 2.76 | 2.87 | 2.76 |
| Quick Ratio | 1.11 | 1.11 | 1.53 | 1.68 | 1.45 | 1.72 | 2.20 | 1.52 | 1.40 | 1.37 | 1.37 |
| Cash Ratio | 0.17 | 0.17 | 0.58 | 0.72 | 0.48 | 0.85 | 1.42 | 0.46 | 0.26 | 0.25 | 0.31 |
| Asset Turnover | — | 0.72 | 1.46 | 1.52 | 1.62 | 1.48 | 1.61 | 1.85 | 1.74 | 1.51 | 1.31 |
| Inventory Turnover | 1.96 | 1.96 | 5.22 | 4.88 | 4.28 | 5.10 | 5.06 | 5.09 | 4.15 | 3.64 | 3.65 |
| Days Sales Outstanding | — | 113.12 | 59.68 | 60.39 | 68.01 | 67.99 | 44.64 | 45.76 | 56.26 | 58.31 | 61.32 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 5.8% | 19.8% | 8.9% | 0.5% | — | — | 4.1% | — | — |
| FCF Yield | 9.0% | 8.6% | 20.7% | 13.9% | — | 2.6% | 23.0% | 17.3% | 4.9% | — | 10.2% |
| Buyback Yield | 2.5% | 2.4% | 1.6% | 4.1% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.5% | 2.4% | 1.6% | 4.1% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $118M | $107M | $108M | $111M | $110M | $109M | $109M | $109M | $108M | $107M |
Operating margin structural erosion
Based on recent financial data, DNOW trades at a forward P/E of 38.90, which appears to price in a significant recovery that remains unsupported by the company's current negative TTM earnings and the persistent volatility in its core energy-related revenue streams.
The elevated forward multiple suggests that investors are banking on a rapid return to profitability, yet the lack of a clear PEG ratio highlights the difficulty in justifying this premium given the current earnings contraction. Compared to industrial peers, the P/S ratio of 0.57 indicates that the market remains skeptical of the company's ability to expand margins through its Process Solutions segment.
According to historical performance metrics, DNOW's ROIC has deteriorated from 3.1% in 2023Q4 to a negative 1.4% in 2026Q1, signaling that recent capital deployments are failing to generate adequate returns and may be eroding shareholder value during this period of aggressive asset expansion.
The decline in ROIC suggests that the company's recent acquisitions and inventory investments are not yet contributing to operational efficiency. This trend warrants further investigation into whether the capital allocated to the Process Solutions segment is being effectively utilized or if it is merely inflating the asset base without improving core profitability.
As reported in recent quarterly filings, DNOW's cash conversion cycle expanded to 116 days in 2026Q1, a significant increase from the 85-day cycle observed in 2023Q4, indicating that the company is becoming less efficient at managing its inventory and collecting receivables from its energy sector customers.
The rise in days inventory outstanding to 108 days suggests a potential buildup of slow-moving stock, which may necessitate future impairments. This inefficiency in working capital management directly contributes to the observed cash flow volatility and limits the company's ability to self-fund operations during cyclical downturns.
Based on the company's reported figures, DNOW's debt-to-equity ratio has risen to 0.32 as of 2026Q1, marking a departure from its historical near-zero debt profile and suggesting that the firm is increasingly relying on external financing to support its current operational and acquisition strategy.
While the current debt levels remain manageable in absolute terms, the shift in leverage profile reduces the company's historical buffer against energy market volatility. Investors should monitor whether this increased debt burden will constrain future capital allocation flexibility, particularly if operating margins remain under pressure.
The P/E ratio is frequently misapplied to DNOW, as it obscures the impact of LIFO inventory accounting and cyclical earnings volatility, which often lead to distorted bottom-line figures that fail to reflect the company's underlying cash-generating capacity or its true operational health.
Analysts should prioritize EV/EBITDA or P/FCF metrics to better assess the company's valuation, as these ratios are less sensitive to non-cash accounting adjustments and the lumpy nature of project-based revenue. Relying on P/E in this context may lead to erroneous conclusions regarding the company's true earnings power and its relative value compared to more stable industrial peers.
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Quick answers to the most common questions about buying DNOW stock.
Dnow Inc.'s current P/E ratio is -16.9x. The historical average is 45.2x.
Dnow Inc.'s return on equity (ROE) is -5.3%. The historical average is -2.7%.
Based on historical data, Dnow Inc. is trading at a P/E of -16.9x. Compare with industry peers and growth rates for a complete picture.
Dnow Inc. has 17.0% gross margin and -2.9% operating margin.