DnowDNOW +1.64%79 Return-on-Tangible-Asset is -6.45% as of Mar. 2026. GuruFocus rates DNOW with a GF Score™ of 79/100 and a GF Value™ of $15.36 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 157 Industrial Distribution companies, Dnow ranks worse than 95.54% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Dnow's annualizedNet Income for the quarter that ended in Mar. 2026 was $-176 Mil. Dnow's average total tangible assets for the quarter that ended in Mar. 2026 was $2,727 Mil. Therefore, Dnow's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was -6.45%.
The historical rank and industry rank for Dnow's Return-on-Tangible-Asset or its related term are showing as below:
DNOW'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -37.72 Med: -1.95 Max: 19.68
Current: -8.12
During the past 13 years, Dnow's highest Return-on-Tangible-Asset was 19.68%. The lowest was -37.72%. And the median was -1.95%.
DNOW's Return-on-Tangible-Asset is ranked worse than 95.54% of 157
companies
in the Industrial Distribution industry
Industry Median: 4.22
vs DNOW: -8.12
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Dnow Return-on-Tangible-Asset Related Terms
Dnow Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Dnow's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DNOW vs DXPE, GIC, DSGR: Return-on-Tangible-Asset Comparison
For the Industrial Distribution subindustry, Dnow's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dnow Return-on-Tangible-Asset vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Dnow's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Dnow's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of -6.45% mean?
Dnow (DNOW) has a Return-on-Tangible-Asset of -6.45% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Dnow and its competitors. According to the industry distribution chart, Dnow ranks #150 out of 157 companies in the Industrial Distribution industry, placing it in the top 95.5%.
Is Dnow's Return-on-Tangible-Asset too high?
Dnow's current Return-on-Tangible-Asset is -6.45%. Based on the distribution chart, Dnow ranks #150 out of 157 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers. Overall, Dnow has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dnow's Return-on-Tangible-Asset compare to DXPE and GIC?
According to the Industrial Distribution industry distribution chart, Dnow ranks #150 out of 157 companies for Return-on-Tangible-Asset. This places Dnow in the lower half of its industry. The industry median Return-on-Tangible-Asset is 4.22. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Industrial Distribution company?
The median Return-on-Tangible-Asset among Industrial Distribution companies is 4.22, based on 157 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Dnow and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Asset is 4.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dnow's current Return-on-Tangible-Asset is -6.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dnow stock overvalued right now?
Based on GuruFocus' analysis, Dnow (DNOW) is currently considered Modestly Undervalued. The stock's GF Value™ is $15.36, compared to a current price of $13.05 — trading 15% below its estimated fair value. The current Return-on-Tangible-Asset is -6.45%. Dnow's overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Dnow (DNOW), the current Return-on-Tangible-Asset is -6.45% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dnow (DNOW) Overvalued in 2026?
Based on GuruFocus' analysis, Dnow stock appears to be undervalued.
The current stock price of $13.05 is trading 15% below its estimated GF Value™ of $15.36.
GuruFocus considers Dnow to be Modestly Undervalued.
Key valuation signals for DNOW:
Return-on-Tangible-Asset: -6.45%
GF Value™: $15.36 vs. price of $13.05 (15% below fair value)
No single metric tells the full story. See the DNOW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dnow Inc is a provider of energy and industrial solutions and a distributor of pipe, valves, and fittings (PVF) and pumps, as well as fabrication, assembly, and testing of process and production equipment. It provides a broad mix of products required to build and maintain essential infrastructure and operating equipment across upstream, midstream, gas utilities, downstream, energy transition, and industrial markets, along with value-added supply chain solutions and technical product expertise supported by digital offerings through its DigitalNOW and MRCGO e-commerce platforms. The company operates mainly under the DNOW and MRC brands and has three reportable segments: the United States, which generates the majority of revenue, Canada, and International.
79GF Score
Get the complete analysis for DNOW
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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