DNOW
EnergyDnow Inc. · Oil & Gas Equipment & Services · $2B
What is Dnow Inc.?
Dnow Inc. is a Houston-based distributor of energy and industrial products, serving customers across petroleum refining, chemical processing, LNG, power generation, and industrial manufacturing. Operating under the DistributionNOW and DNOW brands, the company reaches clients in the United States, Canada, and internationally.
DNOW generates revenue by supplying a broad range of maintenance, repair, and operating products through a network of approximately 180 locations. Customers rely on the company for pipes, valves, fittings, instrumentation, and safety supplies, as well as original equipment such as pumps, compressors, and generator sets. Beyond product distribution, DNOW offers supply chain management services covering procurement, inventory planning, warehouse management, and logistics — helping energy and industrial operators reduce complexity in their materials sourcing.
Dnow Inc. was established in 2014 and is headquartered in Houston, Texas.
- Pipes, valves, fittings, flanges, and gaskets for energy operations
- Pumps, compressors, and generator sets from original equipment manufacturers
- Artificial lift systems and modular oil and gas tank battery solutions
- Safety supplies, tools, and personal protective equipment
- Supply chain and warehouse management services for industrial customers
Is DNOW a Good Stock to Buy?
UQS Score rates DNOW as Below Average overall.
The Growth and Risk pillars are the relative bright spots in DNOW's profile. The company's growth trajectory compares reasonably well within its sector, and its risk profile suggests a degree of financial stability that provides some downside cushion. The Valuation pillar is rated Attractive, meaning the stock does not appear expensive relative to its fundamentals.
The Quality and Moat pillars are both rated Weak — the two most significant drags on the overall score. This signals that DNOW's underlying business returns and competitive positioning lag behind higher-quality peers in the energy distribution space.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does DNOW pay dividends?
No — Dnow Inc. does not currently pay a dividend.
DNOW does not currently pay a dividend. For a distributor operating in a cyclical energy environment, retaining capital can support working capital needs, network maintenance, and opportunistic growth. Investors seeking income from the energy sector may need to look elsewhere, while those focused on capital allocation efficiency can explore the full picture through UQS Pro.
When does DNOW report earnings?
Dnow Inc. reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
DNOW's Growth pillar is rated Good, suggesting the company has demonstrated a positive revenue or earnings trajectory relative to sector peers. The Risk pillar rating reinforces that recent results have not raised major red flags around financial stability. Qualitative trends in energy demand and industrial activity remain key drivers to watch.
For the most recent quarter's results and upcoming reporting dates, visit Dnow Inc.'s investor relations page directly.
DNOW Price History
+14.1% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Dnow Inc.?
Based on Dnow Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
DNOW Long-term Outlook
DNOW's fundamental outlook is shaped by a combination of a Good Growth rating and a Good Risk rating, offset by Weak Quality and Moat scores. The Attractive Valuation suggests the market may not be pricing in a strong recovery scenario, which could be a double-edged dynamic — limited downside expectation but also limited confidence in durable earnings power. The path forward depends heavily on energy sector activity levels and DNOW's ability to expand margins through its service offerings.
Growth drivers
- Rising demand for LNG infrastructure and downstream energy services
- Expansion of supply chain management services beyond traditional product distribution
- Industrial manufacturing activity supporting MRO product volumes
Key risks
- Cyclical exposure to oil and gas capital spending, which can contract sharply
- Weak Moat rating signals limited pricing power against larger or more specialized competitors
- Valuation upside may be constrained if Quality metrics do not improve over time
DNOW vs Peers
DNOW operates in a competitive energy services and distribution landscape alongside several other sector participants.
Bristow focuses on aviation services for offshore energy operations, a fundamentally different service model from DNOW's ground-based product distribution network.
RPC provides oilfield services including pressure pumping and coiled tubing, competing in the upstream energy services space rather than downstream distribution.
Trican is a Canadian well services company focused on pressure pumping, giving it a geographically and operationally distinct profile from DNOW's broad distribution business.
Frequently Asked Questions
What does Dnow Inc. do?
Dnow Inc. distributes energy and industrial products — including pipes, valves, fittings, pumps, and safety supplies — to customers in petroleum refining, chemical processing, LNG, power generation, and industrial manufacturing. The company also provides supply chain and warehouse management services through roughly 180 locations across the US, Canada, and international markets.
Does DNOW pay dividends?
DNOW does not currently pay a dividend. The company retains capital rather than distributing it to shareholders, which is common among smaller energy-sector distributors navigating a cyclical operating environment. Income-focused investors should factor this into their assessment.
When does DNOW report earnings?
Dnow Inc. follows a standard quarterly earnings cadence for US-listed companies. The company does not pre-announce specific dates far in advance, so investors should check Dnow Inc.'s investor relations page for the most current schedule and recent results.
Is DNOW a good stock to buy?
UQS Score rates DNOW as Below Average overall. While the Growth and Risk pillars show relative strength and the Valuation is rated Attractive, the Weak Quality and Moat ratings weigh on the composite score. Whether DNOW fits a portfolio depends on individual risk tolerance and investment objectives — the full pillar breakdown is available to UQS Pro members.
Is DNOW overvalued?
The UQS Valuation pillar for DNOW is rated Attractive, suggesting the stock does not appear expensive relative to its fundamentals when compared to sector peers. However, an attractive valuation alone does not offset concerns in other areas — Quality and Moat remain Weak, which can limit the upside case.
How does DNOW compare to its competitors?
DNOW's closest listed peers include Bristow Group, RPC Inc., and Trican Well Service. Each operates in a different corner of the energy services market — aviation, oilfield services, and pressure pumping respectively — making direct comparisons nuanced. UQS Pro provides side-by-side pillar scoring to help contextualize DNOW's relative positioning.
What is DNOW's market cap bracket?
DNOW is classified as a small-cap stock. This places it in a segment of the market that can offer growth potential but also carries higher volatility and liquidity risk compared to large- or mega-cap energy companies.
Who founded Dnow Inc.?
Dnow Inc. was established in 2014 as a spin-off from National Oilwell Varco. Founding and leadership history is publicly available through the company's official filings and investor relations materials.
Is DNOW a long-term quality investment?
As a long-term quality indicator, DNOW's UQS profile presents a mixed picture. The Good Growth and Risk ratings offer some encouragement, but the Weak Quality and Moat scores suggest the business has not yet demonstrated the durable competitive advantages typically associated with high-quality long-term holdings. Pro members can view the complete analysis.
What is the main competitive advantage of Dnow Inc.?
DNOW's primary advantage lies in its broad distribution network of approximately 180 locations and its integrated supply chain services, which reduce procurement complexity for energy and industrial customers. However, the UQS Moat pillar is rated Weak, indicating this advantage may not yet translate into durable pricing power or switching costs at scale.
What sector does DNOW belong to?
DNOW operates in the Energy sector, specifically within energy product distribution and supply chain services. Its customer base spans petroleum refining, chemical processing, LNG terminals, power generation, and industrial manufacturing — giving it exposure to both upstream and downstream energy activity.
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Pro Analysis
DNOW — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 44.4 | 11.8 | 15.0 | 64.7 | 76.6 | 88.5 | +0.1 |
| May 12, 2026 | 44.3 | 11.7 | 15.0 | 64.7 | 76.6 | 88.1 | +1.6 |
| May 10, 2026 | 42.7 | 7.3 | 15.0 | 64.7 | 76.6 | 84.7 | -3.9 |
| May 7, 2026 | 46.6 | 19.8 | 15.0 | 64.7 | 76.6 | 89.8 | +0.1 |
| May 3, 2026 | 46.5 | 19.8 | 15.0 | 64.7 | 76.1 | 89.3 | -0.2 |
| Apr 26, 2026 | 46.7 | 19.8 | 15.0 | 64.7 | 76.1 | 91.2 | -0.4 |
| Apr 24, 2026 | 47.1 | 19.8 | 15.0 | 64.7 | 76.1 | 93.5 | -0.3 |
| Apr 22, 2026 | 47.4 | 19.8 | 15.0 | 64.7 | 76.1 | 95.4 | -3.1 |
| Apr 19, 2026 | 50.5 | 23.3 | 15.0 | 76.1 | 76.1 | 95.4 | +0.2 |
| Apr 14, 2026 | 50.3 | 23.3 | 15.0 | 76.1 | 76.1 | 94.1 | -0.1 |
DNOW — Pillar Breakdown
Quality
— 11.8/100 (25%)Dnow Inc. currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 64.7/100 (20%)Dnow Inc. demonstrates healthy growth trends across revenue and earnings.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 76.6/100 (15%)Dnow Inc. carries minimal financial risk with conservative leverage and strong solvency.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 88.5/100 (15%)Dnow Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Moat
— 15/100 (25%)Dnow Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for DNOW.
Score Composition
Financial Data
More Stock Analysis
How is the DNOW UQS Score Calculated?
The UQS (Unified Quality Score) for Dnow Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Dnow Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Dnow Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.