NOW Inc.Find Ratings Reports
NOW INC's gross profit margin for the second quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its subsector, revenue growth did not. NOW INC has strong liquidity. Currently, the Quick Ratio is 1.84 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 40.90% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY20||Q2 FY19|
|Net Sales ($mil)||370.0||776.0|
|Net Income ($mil)||-30.0||14.0|
|Balance Sheet||Q2 FY20||Q2 FY19|
|Cash & Equiv. ($mil)||269.0||80.0|
|Total Assets ($mil)||1069.0||1849.0|
|Total Debt ($mil)||30.0||137.0|
|Profitability||Q2 FY20||Q2 FY19|
|Gross Profit Margin||20.27||21.01|
|Return on Assets||-45.83||3.67|
|Return on Equity||-65.59||5.37|
|Debt||Q2 FY20||Q2 FY19|
|Share Data||Q2 FY20||Q2 FY19|
|Shares outstanding (mil)||109.38||108.8|
|Div / share||0.0||0.0|
|Book value / share||6.83||11.62|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1451877.0||1444233.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.30 indicates a significant discount versus the S&P 500 average of 3.69 and a significant discount versus the subsector average of 5.88. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, NOW INC proves to trade at a discount to investment alternatives.
|DNOW NM||Peers 48.84||DNOW NA||Peers 16.12|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
DNOW's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|DNOW NM||Peers 26.10||DNOW NA||Peers 5.31|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
DNOW's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|DNOW 1.30||Peers 5.88||DNOW -846.66||Peers -27.92|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
DNOW is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, DNOW is expected to significantly trail its peers on the basis of its earnings growth rate.
|DNOW 0.41||Peers 2.08||DNOW -24.89||Peers 2.78|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
DNOW is trading at a significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
DNOW significantly trails its peers on the basis of sales growth.