Last Updated: 13 Nov 2024
Executive Summary
Now Inc. (DNOW) is a leading distributor of downstream power and industrial products for various industries. The company has a strong financial position with a market capitalization of $1.57 billion, EBITDA of $172 million, and a trailing PE ratio of 7.2. The company's revenue and earnings have been growing steadily, and its profit margins are healthy. However, the company faces competition from larger distributors and is susceptible to fluctuations in the oil and gas industry.
Company Overview
Now Inc. was founded in 1999 and is headquartered in Houston, Texas. The company operates through a network of distribution centers and sales offices in the United States, Canada, and internationally. Now Inc. offers a wide range of products, including valves, pumps, compressors, and other equipment used in oil refining, chemical processing, LNG terminals, power generation services, and industrial manufacturing operations.
Fundamental Analysis
Now Inc.'s financial performance has been strong in recent years. The company's revenue has grown from $2.1 billion in 2019 to $2.36 billion in 2023. Net income has also increased from $124 million in 2019 to $172 million in 2023. The company's profit margins have remained stable, with a gross profit margin of 21.5% and an operating margin of 5.45% in 2023.
Now Inc.'s balance sheet is also strong. The company has $450 million in cash and equivalents and $1.2 billion in total debt. The company's debt-to-equity ratio is 0.45, which is below the industry average.
Technical Analysis
Now Inc.'s stock price has been trading in a range between $9.44 and $15.64 over the past 52 weeks. The stock is currently trading at $14.91, which is near the middle of its 52-week range. The stock's 50-day moving average is $12.46, and its 200-day moving average is $13.33. The stock's relative strength index (RSI) is 55, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
The short-term outlook for Now Inc. is mixed. The company's financial performance is strong, but the stock price is trading near its 52-week high. The stock could continue to trade in a range in the near term.
Long Term Outlook
The long-term outlook for Now Inc. is positive. The company is a leader in its industry and has a strong financial position. The company's revenue and earnings are expected to continue to grow in the long term.
Analyst Recommendations
Analysts have a mixed view on Now Inc. Two analysts have a "Strong Buy" rating on the stock, while one analyst has a "Hold" rating. The average analyst target price is $15.67, which is 5.1% above the current stock price.
