DnowDNOW +2.25%77 ROA % is -4.48% as of Mar. 2026. GuruFocus rates DNOW with a GF Score™ of 77/100 and a GF Value™ of $15.27 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 157 Industrial Distribution companies, Dnow ranks worse than 94.9% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Dnow's annualizedNet Income for the quarter that ended in Mar. 2026 was $-176 Mil.
Dnow's average Total Assets over the quarter that ended in Mar. 2026 was $3,926 Mil. Therefore, Dnow's annualized ROA % for the quarter that ended in Mar. 2026 was -4.48%.
The historical rank and industry rank for Dnow's ROA % or its related term are showing as below:
DNOW'
s ROA % Range Over the Past 10 Years
Min: -32.86 Med: -1.32 Max: 17.55
Current: -6.04
During the past 13 years, Dnow's highest ROA % was 17.55%. The lowest was -32.86%. And the median was -1.32%.
DNOW's ROA % is ranked worse than 94.9% of 157
companies
in the Industrial Distribution industry
Industry Median: 3.76
vs DNOW: -6.04
Dnow (NYSE:DNOW) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Dnow ROA % Related Terms
Dnow ROA % Historical Data
* Premium members only.
The historical data trend for Dnow's ROA % 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.
For the Industrial Distribution subindustry, Dnow's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Dnow's ROA % distribution charts can be found below:
* The bar in red indicates where Dnow's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Dnow (DNOW) has a ROA % of -4.48% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Dnow and its competitors. According to the industry distribution chart, Dnow ranks #149 out of 157 companies in the Industrial Distribution industry, placing it in the top 94.9%.
Is Dnow's ROA % too high?
Dnow's current ROA % is -4.48%. Based on the distribution chart, Dnow ranks #149 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 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dnow's ROA % compare to DXPE and DSGR?
According to the Industrial Distribution industry distribution chart, Dnow ranks #149 out of 157 companies for ROA %. This places Dnow in the lower half of its industry. The industry median ROA % is 3.76. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Industrial Distribution company?
The median ROA % among Industrial Distribution companies is 3.76, based on 157 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Dnow and its competitors. For the Industrial Distribution industry, the median ROA % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dnow's current ROA % is -4.48%. 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 $15.27, compared to a current price of $13.39 — trading 12.3% below its estimated fair value. The current ROA % is -4.48%. Dnow's overall GF Score™ is 77/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Dnow (DNOW), the current ROA % is -4.48% 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 $13.39 is trading 12.3% below its estimated GF Value™ of $15.27.
GuruFocus considers Dnow to be Modestly Undervalued.
Key valuation signals for DNOW:
ROA %: -4.48%
GF Value™: $15.27 vs. price of $13.39 (12.3% 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.
77GF Score
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