Dnow (DNOW) ROCE %: -6.72% (As of Mar. 2026)


DNOW Dnow Inc DNOW
77 GF Score
Price $13.09
GF Value $15.27
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Dnow ROCE %?

Dnow DNOW -2.39% 77 ROCE % is -6.72% 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Dnow's annualized ROCE % for the quarter that ended in Mar. 2026 was -6.72%.

Dnow  (NYSE:DNOW) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Dnow ROCE % Related Terms

Dnow ROCE % Historical Data

* Premium members only.

The historical data trend for Dnow's ROCE % 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 ROCE % Chart

Dnow Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.18 17.45 14.46 10.04 -3.92

Dnow Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.79 10.68 10.86 -33.72 -6.72
DNOW
77GF Score
Dnow Inc DNOW
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Dnow ROCE % Calculation

Dnow's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=-81/( ( (1621 - 442) + (3924 - 974) )/ 2 )
=-81/( (1179+2950)/ 2 )
=-81/2064.5
=-3.92 %

Dnow's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=-200/( ( (3924 - 974) + (3927 - 929) )/ 2 )
=-200/( ( 2950 + 2998 )/ 2 )
=-200/2974
=-6.72 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -6.72% mean?
Dnow (DNOW) has a ROCE % of -6.72% as of Mar. 2026.
Is Dnow's ROCE % too high?
Dnow's current ROCE % is -6.72%. 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 ROCE % compare to DXPE and DSGR?
Dnow's ROCE % of -6.72% can be compared against companies in the Industrial Distribution industry. The industry median ROCE % is 9.60. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Industrial Distribution company?
The median ROCE % among Industrial Distribution companies is 9.60, based on 157 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Distribution industry, the median ROCE % is 9.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dnow's current ROCE % is -6.72%. 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 $13.09 — trading 14.3% below its estimated fair value. The current ROCE % is -6.72%. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Dnow (DNOW), the current ROCE % is -6.72% 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 $13.09 is trading 14.3% below its estimated GF Value™ of $15.27. GuruFocus considers Dnow to be Modestly Undervalued.

Key valuation signals for DNOW:

  • ROCE %: -6.72%
  • GF Value™: $15.27 vs. price of $13.09 (14.3% below fair value)
  • GF Score™: 77/100 with 3 warning signs

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 Business Description

Address 7402 North Eldridge Parkway, Houston, TX, USA, 77041
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$13.09
Price
$15.27
GF Value