Over the past week, NOW Inc (DNOW, Financial) has seen an impressive 8.32% gain in its stock price, bringing it to a current price of $11.85. This surge is part of a larger trend, with the stock experiencing a substantial 30.08% gain over the past three months. With a market cap of $1.26 billion, NOW Inc is making significant strides in the stock market. According to the GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is currently modestly undervalued at $13.13. This is a slight increase from the past GF Value of $12.76, which also indicated that the stock was modestly undervalued.
Company Overview
NOW Inc, operating in the oil and gas industry, is a distributor to the oil and gas and industrial markets. The company has a significant presence in the United States, Canada, and internationally. NOW Inc's product offerings include consumable maintenance, repair & operating (MRO) supplies, pipe, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical, instrumentation, artificial lift, pumping solutions and modular process, production, measurement & control equipment. In addition to these products, the company also offers procurement, warehouse & inventory management solutions as part of its supply chain and materials management offering. NOW Inc has developed expertise in providing application systems, work processes, parts integration, optimization solutions & after-sales support.
Profitability Analysis
With a Profitability Rank of 5/10, NOW Inc demonstrates average profitability. The company's Operating Margin of 6.52% is better than 43.89% of companies in the same industry. NOW Inc's ROE of 16.55%, ROA of 10.45%, and ROIC of 19.34% are all higher than the majority of companies in the same industry. Over the past 10 years, the company has demonstrated profitability for 5 years, which is better than 51.43% of companies in the same industry.
Growth Prospects
NOW Inc's Growth Rank of 1/10 indicates low growth. However, the company's 3-year and 5-year revenue growth rates per share, which stand at -10.80% and -10.30% respectively, are still better than a small percentage of companies in the same industry.
Major Stock Holders
The top three holders of NOW Inc's stock are Jim Simons (Trades, Portfolio), Barrow, Hanley, Mewhinney & Strauss, and Chuck Royce (Trades, Portfolio). Jim Simons (Trades, Portfolio) holds the largest number of shares at 4,153,992, which accounts for 3.89% of the company. Barrow, Hanley, Mewhinney & Strauss holds 2,561,704 shares, accounting for 2.4% of the company. Chuck Royce (Trades, Portfolio) holds 1,947,636 shares, which represents 1.82% of the company.
Competitive Landscape
NOW Inc faces competition from Core Laboratories Inc (CLB, Financial), Oceaneering International Inc (OII, Financial), and Tidewater Inc (TDW, Financial). Core Laboratories Inc has a market cap of $1.16 billion, Oceaneering International Inc has a market cap of $2.42 billion, and Tidewater Inc has a market cap of $3.56 billion. These market caps are comparable to NOW Inc's market cap of $1.26 billion.
Conclusion
In conclusion, NOW Inc's stock performance has been impressive, with a 30.08% gain over the past three months. The company's operations, profitability, and growth prospects, along with its major holders, contribute to its position in the market. Despite facing competition from companies with similar market caps, NOW Inc continues to hold its own in the market. The company's stock is currently modestly undervalued, indicating potential for further growth.
