| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 62 | — | 17.8x | Around median | |
Growth | 72 | 69.8% | 7.1% | Top tier | |
Quality | 17 | -8.3% | 4.5% | Bottom tier | |
Safety | 67 | — | 2.6x | Top tier | |
Capital Return | 29 | — | 2.12% | Bottom tier | |
Momentum | 75 | -1.7% | 2.9% | Top tier | |
Sentiment | 38 | 4 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Dnow Inc. operates under the DNOW and MRC brands as a distributor and supply chain solutions provider for the energy, infrastructure, and industrial sectors. The company generates revenue by supplying products and services related to upstream and midstream activities, gas utilities, refineries, and downstream industries, in addition to water, automation, and control solutions; the stated areas of demand include pipelines, compressor stations, fabricated solutions, valve automation, LNG projects, and data centers. The combination of DNOW and MRC Global expanded the product range and geographic coverage, while the integration plan targets annual savings of $70 million by the end of the third year.
Revenue for the second quarter of fiscal 2026 was approximately $1.307 billion, an increase of $124 million, or 10%, sequentially, while U.S. revenue rose 13% to $1.1 billion. Upstream activity accounted for 36% of U.S. revenue, gas utilities 28%, midstream 23%, and downstream and industrial 13%; Canada recorded $47 million, down 8% sequentially, while international revenue increased 3% to $151 million. Gross profit under EDGAR filings was approximately $243 million, equivalent to about 18.6% of revenue, while the company’s adjusted measure recorded gross profit of $272 million and an adjusted margin of 20.8%.
Dnow ended the second quarter of fiscal 2026 with a net loss of $21 million and a diluted loss per share of $0.11, compared with adjusted net income of $21 million and adjusted earnings of $0.12 per share. Adjusted earnings before interest, taxes, depreciation, and amortization increased 54% sequentially to $60 million, and its margin improved by 130 basis points to 4.6%. On a trailing-twelve-month basis in the latest EDGAR data, revenue was $4.1 billion and gross profit was $631 million, but the net loss reached $201 million.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average target of $19, and the low and high bounds both match at $19, indicating no apparent dispersion among the submitted targets; this target also stands above the 52-week range high of $17.26, while the range low is $10.935. No positive price-to-earnings multiple is available because of the trailing-twelve-month net loss of $201 million. Therefore, the rerating rationale depends on achieving fiscal 2026 revenue guidance of $5.0–5.1 billion and improving the adjusted margin, weighed against the risks of GAAP losses, integration costs, and the expected seasonal decline in the fourth quarter.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue increased 10% sequentially to $1.307 billion, led by 13% growth in the United States to $1.1 billion. Progress came from midstream, gas utilities, and upstream activities, with recovering customer activity and improved execution following the combination of DNOW and MRC Global. Adjusted earnings before interest, taxes, depreciation, and amortization increased 54% to $60 million, while selling, general, and administrative expenses declined to $238 million from $243 million.
The second quarter of fiscal 2026 was the company’s first full quarter following the combination of DNOW and MRC Global. In July 2026, the company completed the conversion of the seventeenth MRC Global location to SAP, with the aim of standardizing operations and improving inventory visibility and customer service speed. Management expects savings at an exit run rate of $30 million in fiscal 2026, with an annual target of $70 million by the end of the third year.
Management expects third-quarter fiscal 2026 revenue to grow at a low- to mid-single-digit sequential rate, with an adjusted earnings before interest, taxes, depreciation, and amortization margin between 5% and 5.5%. It raised its fiscal 2026 revenue forecast to approximately $5.0–5.1 billion, with an adjusted margin of approximately 4.5%. In contrast, the company expects a seasonal decline in the fourth quarter, after historical standalone declines ranged between 6% and 8% at DNOW and approximately 10% at MRC.
The company provides infrastructure products and services that include pipeline work, compressor stations, fabricated solutions, valve automation, and data center feed projects. U.S. midstream revenue in the second quarter of fiscal 2026 exceeded an annualized run rate of $1 billion for the first time. Management also raised its estimate for data center revenue in fiscal 2026 to $40–50 million, compared with a previous estimate of approximately $30 million.
The company generated $133 million of operating cash flow, a record for any second quarter, and achieved an inflow of $38 million since the start of fiscal 2026. Inventory declined by $131 million to $1.1 billion, and days sales outstanding improved by seven days to 62 days. Liquidity reached $472 million, while net debt declined by $95 million during the quarter to $360 million, with a leverage ratio of 1.7 times.
The company recorded a net loss of $21 million in the second quarter of fiscal 2026, and its trailing-twelve-month loss reached $201 million, despite generating positive adjusted income. Adjusted gross margin declined to 20.8% from 21.6%, while the costs of mitigating ERP and integration issues were approximately $8.5 million during the quarter. Other risks include the expected seasonal decline in the fourth quarter and delays to certain international projects because of geopolitical disruptions and cost and supply chain pressures.
