Dnow Inc (DNOW, Financial) has experienced a notable shift in its stock performance over recent months. With a current market capitalization of $1.55 billion, the stock price stands at $14.56, reflecting a slight decrease of 0.89% over the past week. However, looking at a broader timeframe, DNOW has seen a significant price increase of 29.04% over the past three months. This growth has brought the stock from a state of being modestly undervalued, with a past GF Value of $13.28, to its current status of being fairly valued, with a GF Value of $14.14. This valuation indicates that the stock is trading at a price close to its intrinsic value.
Introduction to Dnow Inc
Dnow Inc operates within the industrial products sector, specializing as a supplier of energy and industrial products, engineered equipment, and digital solutions. The company's legacy spans over 160 years, and it has established itself as a provider of comprehensive supply chain solutions. DNOW's DigitalNOW suite offers cutting-edge technology for digital commerce and data management. The company serves a diverse range of industries, including exploration and production, midstream transmission, refineries, and sectors focused on decarbonization and renewable energy. 
Assessing Dnow Inc's Profitability
Dnow Inc's Profitability Rank stands at 5/10, indicating a moderate level of profitability within its industry. The company's Operating Margin is 6.03%, which is more competitive than 44.71% of 2,968 companies in the same domain. DNOW's ROE (Return on Equity) is an impressive 27.32%, surpassing 93.63% of its peers. Similarly, its ROA (Return on Assets) at 17.71% and ROIC (Return on Invested Capital) at 30.66% are better than 96.52% and 96.24% of companies, respectively. Over the past decade, DNOW has maintained profitability for five years, which is more favorable than 23.16% of its industry counterparts. 
Growth Trajectory of Dnow Inc
The Growth Rank for Dnow Inc is currently at 1/10, suggesting that the company's growth is lower than the majority of its industry peers. Despite this, DNOW has achieved a 3-Year Revenue Growth Rate per Share of 13.00%, which is higher than 66.21% of 2,764 companies in the same space. However, the 5-Year Revenue Growth Rate per Share shows a decline of 6.90%, which, while not ideal, is still better than 13.56% of 2,508 companies. This mixed growth performance highlights the challenges and opportunities that DNOW faces in its market. 
Key Shareholders in Dnow Inc
Prominent investors have taken notice of Dnow Inc's potential. The leading shareholder, Jim Simons (Trades, Portfolio), holds 3,940,692 shares, accounting for 3.71% of the company. Following closely is Barrow, Hanley, Mewhinney & Strauss with 3,689,355 shares, representing 3.47%. Chuck Royce (Trades, Portfolio) also maintains a significant stake with 1,584,767 shares, or 1.49%. These holdings by influential investors underscore the confidence in DNOW's business model and future prospects.
Competitive Landscape
When compared to its competitors, Dnow Inc stands robust in its market capitalization. ProPetro Holding Corp (PUMP, Financial) has a market cap of $814.282 million, Atlas Energy Solutions Inc (AESI, Financial) is valued at $1.27 billion, and Kodiak Gas Services Inc (KGS, Financial) at $2.04 billion. DNOW's market cap of $1.55 billion positions it comfortably within this range, reflecting its competitive standing in the industrial products industry.
Conclusion
In summary, Dnow Inc's recent stock performance has been marked by a significant 29.04% increase over the past three months, bringing the stock to a fair valuation according to the GF Value. The company's profitability metrics are strong, particularly in terms of ROE, ROA, and ROIC, although its Growth Rank suggests there is room for improvement in revenue expansion. The presence of notable shareholders like Jim Simons (Trades, Portfolio), Barrow, Hanley, Mewhinney & Strauss, and Chuck Royce (Trades, Portfolio) indicates a level of investor confidence in DNOW's future. Finally, when placed alongside its competitors, DNOW holds a solid position in the market, suggesting a stable footing within its industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
