Added to YB: 2026-05-20
Pitch date: 2026-03-12
DNOW [bullish]
DNOW Inc.
+15.93%
current return
Author Info
No bio for this author
Company Info
DNOW Inc. distributes pipe, valves, fittings, and pumps in the United States, Canada, and internationally.
Market Cap
$2.4B
Pitch Price
$11.24
Price Target
18.00 (+38%)
Dividend
N/A
EV/EBITDA
16.71
P/E
-11.73
EV/Sales
0.89
Sector
Trading Companies and Distributors
Category
turnaround
DNOW Inc. - $DNOW
DNOW: Merged with MRC Global, creating leading energy distributor w/ $5B rev, $400M EBITDA. Trading at 52-wk low, 10% FCF yield vs 6% hist avg despite stronger portfolio. MRC ERP issues temporary drag but fixable in '26. Model shows 55% upside in 12-18mo via buybacks (6-7% shares/yr), $70M synergies, counter-cyclical cash flows. US rig count at 411 vs $80+ oil implies expansion potential. 0.8x net lev, conservative mgmt, 3:1 up/down risk-reward. PT $18, 20%+ IRR w/o energy capex recovery.
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