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NOW

DB:11N
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
11N
DB
$1B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

NOW Inc. distributes energy and industrial products in the United States, Canada, and internationally. The last earnings update was 10 days ago. More info.


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11N Share Price and Events
7 Day Returns
-2.8%
DB:11N
-0.3%
DE Trade Distributors
0%
DE Market
1 Year Returns
-16.5%
DB:11N
8.5%
DE Trade Distributors
9.9%
DE Market
11N Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NOW (11N) -2.8% 17.8% 2.8% -16.5% -42.5% -53.1%
DE Trade Distributors -0.3% 10.2% 15.4% 8.5% -3.8% 2.3%
DE Market 0% 4.5% 13.6% 9.9% 14.6% 18.2%
1 Year Return vs Industry and Market
  • 11N underperformed the Trade Distributors industry which returned 8.5% over the past year.
  • 11N underperformed the Market in Germany which returned 9.9% over the past year.
Price Volatility
11N
Industry
5yr Volatility vs Market

11N Value

 Is NOW undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NOW to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NOW.

DB:11N Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:11N
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.949 (1 + (1- 21%) (5.67%))
0.994
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.994 * 5.96%)
6.15%

Discounted Cash Flow Calculation for DB:11N using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NOW is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:11N DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.15%)
2020 87.34 Analyst x5 82.28
2021 67.23 Analyst x3 59.66
2022 73.50 Analyst x1 61.44
2023 80.30 Analyst x1 63.24
2024 79.27 Est @ -1.28% 58.81
2025 78.61 Est @ -0.83% 54.94
2026 78.21 Est @ -0.51% 51.49
2027 77.99 Est @ -0.29% 48.37
2028 77.88 Est @ -0.13% 45.50
2029 77.86 Est @ -0.03% 42.85
Present value of next 10 years cash flows $568.00
DB:11N DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $77.86 × (1 + 0.23%) ÷ (6.15% – 0.23%)
$1,317.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,317.04 ÷ (1 + 6.15%)10
$724.87
DB:11N Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $568.00 + $724.87
$1,292.87
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,292.87 / 108.80
$11.88
DB:11N Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:11N represents 0.88407x of NYSE:DNOW
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88407x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 11.88 x 0.88407
€10.51
Value per share (EUR) From above. €10.51
Current discount Discount to share price of €10.60
= -1 x (€10.60 - €10.51) / €10.51
-0.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of NOW is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NOW's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NOW's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:11N PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.53
NYSE:DNOW Share Price ** NYSE (2019-11-15) in USD $11.99
Germany Trade Distributors Industry PE Ratio Median Figure of 7 Publicly-Listed Trade Distributors Companies 15.38x
Germany Market PE Ratio Median Figure of 399 Publicly-Listed Companies 19.43x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NOW.

DB:11N PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:DNOW Share Price ÷ EPS (both in USD)

= 11.99 ÷ 0.53

22.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NOW is overvalued based on earnings compared to the DE Trade Distributors industry average.
  • NOW is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does NOW's expected growth come at a high price?
Raw Data
DB:11N PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
14.3%per year
Europe Trade Distributors Industry PEG Ratio Median Figure of 32 Publicly-Listed Trade Distributors Companies 1.62x
Germany Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

DB:11N PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.46x ÷ 14.3%

1.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NOW is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on NOW's assets?
Raw Data
DB:11N PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $11.65
NYSE:DNOW Share Price * NYSE (2019-11-15) in USD $11.99
Germany Trade Distributors Industry PB Ratio Median Figure of 10 Publicly-Listed Trade Distributors Companies 1.19x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.84x
DB:11N PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:DNOW Share Price ÷ Book Value per Share (both in USD)

= 11.99 ÷ 11.65

1.03x

* Primary Listing of NOW.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NOW is good value based on assets compared to the DE Trade Distributors industry average.
X
Value checks
We assess NOW's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. NOW has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

11N Future Performance

 How is NOW expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NOW expected to grow at an attractive rate?
  • NOW's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • NOW's earnings growth is expected to exceed the Germany market average.
  • NOW's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:11N Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:11N Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 14.3%
DB:11N Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 2.6%
Germany Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
Europe Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 3.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:11N Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:11N Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,408 97 77 2
2022-12-31 3,257 89 65 2
2021-12-31 3,014 95 57 7
2020-12-31 2,903 99 40 11
2019-12-31 2,989 191 42 10
2019-11-16
DB:11N Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 3,076 225 58
2019-06-30 3,147 147 67
2019-03-31 3,148 83 67
2018-12-31 3,127 73 51
2018-09-30 3,032 -10 32
2018-06-30 2,907 -66 4
2018-03-31 2,781 -124 -27
2017-12-31 2,648 -115 -52
2017-09-30 2,517 -58 -120
2017-06-30 2,340 6 -167
2017-03-31 2,190 125 -194
2016-12-31 2,107 235 -234

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NOW's earnings are expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).
  • NOW's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:11N Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from NOW Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:11N Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.69 0.77 0.60 2.00
2022-12-31 0.59 0.68 0.49 2.00
2021-12-31 0.48 0.59 0.34 5.00
2020-12-31 0.34 0.48 0.19 8.00
2019-12-31 0.38 0.40 0.32 5.00
2019-11-16
DB:11N Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.53
2019-06-30 0.62
2019-03-31 0.62
2018-12-31 0.47
2018-09-30 0.30
2018-06-30 0.04
2018-03-31 -0.25
2017-12-31 -0.48
2017-09-30 -1.11
2017-06-30 -1.55
2017-03-31 -1.80
2016-12-31 -2.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • NOW is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess NOW's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NOW has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

11N Past Performance

  How has NOW performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NOW's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NOW has delivered over 20% year on year earnings growth in the past 5 years.
  • NOW's 1-year earnings growth exceeds its 5-year average (81.3% vs 22.3%)
  • NOW's earnings growth has exceeded the DE Trade Distributors industry average in the past year (81.3% vs 8.4%).
Earnings and Revenue History
NOW's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NOW Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:11N Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 3,076.00 58.00 542.00
2019-06-30 3,147.00 67.00 548.00
2019-03-31 3,148.00 67.00 551.00
2018-12-31 3,127.00 51.00 557.00
2018-09-30 3,032.00 32.00 550.00
2018-06-30 2,907.00 4.00 549.00
2018-03-31 2,781.00 -27.00 548.00
2017-12-31 2,648.00 -52.00 542.00
2017-09-30 2,517.00 -120.00 549.00
2017-06-30 2,340.00 -167.00 548.00
2017-03-31 2,190.00 -194.00 550.00
2016-12-31 2,107.00 -234.00 565.00
2016-09-30 2,213.00 -412.00 584.00
2016-06-30 2,446.00 -581.00 597.00
2016-03-31 2,695.00 -555.00 608.00
2015-12-31 3,010.00 -502.00 619.00
2015-09-30 3,372.00 -238.00 646.00
2015-06-30 3,689.00 19.00 656.00
2015-03-31 3,891.00 64.00 655.00
2014-12-31 4,105.00 115.00 638.00
2014-09-30 4,140.00 134.00 606.00
2014-06-30 4,183.00 141.00 586.00
2014-03-31 4,301.00 147.00 579.00
2013-12-31 4,296.00 147.00 573.00
2012-12-31 3,414.00 108.00 443.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • NOW has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NOW used its assets more efficiently than the DE Trade Distributors industry average last year based on Return on Assets.
  • NOW has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess NOW's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NOW has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

11N Health

 How is NOW's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NOW's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NOW is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NOW's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NOW's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • NOW has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NOW Company Filings, last reported 1 month ago.

DB:11N Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 1,267.00 0.00 113.00
2019-06-30 1,264.00 62.00 80.00
2019-03-31 1,245.00 124.00 87.00
2018-12-31 1,214.00 132.00 116.00
2018-09-30 1,217.00 170.00 91.00
2018-06-30 1,189.00 195.00 91.00
2018-03-31 1,192.00 175.00 80.00
2017-12-31 1,185.00 162.00 98.00
2017-09-30 1,187.00 163.00 99.00
2017-06-30 1,176.00 128.00 97.00
2017-03-31 1,175.00 82.00 102.00
2016-12-31 1,183.00 65.00 106.00
2016-09-30 1,268.00 145.00 131.00
2016-06-30 1,322.00 180.00 136.00
2016-03-31 1,368.00 55.00 131.00
2015-12-31 1,403.00 108.00 90.00
2015-09-30 1,658.00 120.00 126.00
2015-06-30 1,922.00 80.00 114.00
2015-03-31 1,922.00 135.00 122.00
2014-12-31 1,966.00 0.00 195.00
2014-09-30 1,973.00 0.00 166.00
2014-06-30 1,958.00 0.00 236.00
2014-03-31 1,904.00 0.00 175.00
2013-12-31 1,802.00 0.00 101.00
2012-12-31 1,971.00 0.00 138.00
  • NOW has no debt.
  • NOW currently has no debt however we can't compare to 5 years ago as we have no data for that period.
  • NOW has no debt, it does not need to be covered by operating cash flow.
  • NOW has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess NOW's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NOW has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

11N Dividends

 What is NOW's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from NOW dividends.
If you bought €2,000 of NOW shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate NOW's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate NOW's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:11N Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Germany Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 2.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 333 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:11N Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31
2019-11-16

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as NOW has not reported any payouts.
  • Unable to verify if NOW's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of NOW's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as NOW has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess NOW's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NOW afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NOW has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

11N Management

 What is the CEO of NOW's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dick Alario
COMPENSATION $225,915
AGE 64
TENURE AS CEO 0 years
CEO Bio

Mr. Richard J. Alario, also known as Dick, has been an Independent Director of NOW Inc. since May 30, 2014 and has been its interim CEO since November 2019. He has been Executive Chairman of Fluid Delivery Solutions, LLC since November 12, 2018. Mr. Alario has over 35 years of experience in the oilfield service business. Mr. Alario served as the Chief Executive Officer of Key Energy Services, Inc. from May 01, 2004 to March 05, 2016 and served as the President from January 01, 2004 to June 22, 2015. Mr. Alario served as the Chief Operating Officer at Key Energy Services Inc., since January 1, 2004. He joined Key from BJ Services Company, where he served as Vice President since May 2002 until 2004. Prior to joining BJ Services, Mr. Alario has over 21 years of service in various capacities with OSCA Inc., where he served as an Executive Vice President. He serves as Ex-Officio Chairman and Executive Committee member of the National Ocean Industries Association. Mr. Alario served as the Chairman of Key Energy Services, Inc. from August 25, 2004 to August 24, 2015. He has been Director of Kirby Corporation since May 27, 2011. Mr. Alario is a Director of Distribution Now. He served as a Director of Seahawk Drilling, Inc. until February 16, 2011. He served as a Director at Key Energy Services, Inc. since March 05, 2016. Mr. Alario holds a Bachelor of Arts from Louisiana State University.

CEO Compensation
  • Dick's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dick's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the NOW management team in years:

3.8
Average Tenure
55
Average Age
  • The tenure for the NOW management team is about average.
Management Team

Dick Alario

TITLE
Interim CEO & Director
COMPENSATION
$226K
AGE
64

David Cherechinsky

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
55
TENURE
1.8 yrs

Mark Johnson

TITLE
VP, Corporate Controller & Chief Accounting Officer
COMPENSATION
$882K
AGE
36
TENURE
1.8 yrs

Raymond Chang

TITLE
VP, General Counsel & Secretary
COMPENSATION
$2M
AGE
48
TENURE
5.8 yrs

Dan Molinaro

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
72

Craig Ballinger

TITLE
Chief Administrative & Information Officer
TENURE
5.8 yrs

Brad Wise

TITLE
Vice President of Marketing & Investor Relations

Burk Ellison

TITLE
Chief Sales Officer

Phillip Goodwin

TITLE
President of Supply Chain Services

Scott Hauck

TITLE
President of Energy Centers
Board of Directors Tenure

Average tenure and age of the NOW board of directors in years:

5.5
Average Tenure
64
Average Age
  • The tenure for the NOW board of directors is about average.
Board of Directors

J. Richards

TITLE
Chairman & Lead Director
COMPENSATION
$265K
AGE
59
TENURE
2.1 yrs

Dick Alario

TITLE
Interim CEO & Director
COMPENSATION
$226K
AGE
64
TENURE
5.5 yrs

Rodney Eads

TITLE
Independent Director
COMPENSATION
$234K
AGE
68
TENURE
5.5 yrs

Paul Coppinger

TITLE
Independent Director
COMPENSATION
$190K
AGE
57
TENURE
1.9 yrs

Terry Bonno

TITLE
Independent Director
COMPENSATION
$221K
AGE
61
TENURE
5.5 yrs

Galen Cobb

TITLE
Independent Director
COMPENSATION
$221K
AGE
65
TENURE
5.5 yrs

Jim Crandell

TITLE
Independent Director
COMPENSATION
$216K
AGE
65
TENURE
5.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess NOW's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NOW has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

11N News

Simply Wall St News

11N Company Info

Description

NOW Inc. distributes energy and industrial products in the United States, Canada, and internationally. It offers consumable maintenance, repair, and operating supplies; and pipes, valves, fittings, flanges, gaskets, fasteners, electrical products, instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as applied products and applications, such as artificial lift systems, coatings, and other expendable items. The company also provides machine, cutting, power, and hand tools; OEM equipment including pumps, generator sets, air and gas compressors, dryers, blowers and valves; and warehouse and inventory management solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support. In addition, it offers supply chain and materials management solutions that include procurement, inventory and warehouse management, logistics, point of issue technology, project management, business process, and performance metrics reporting. The company offers its products under the DistributionNOW and Wilson Export brand names. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, and other downstream energy processors; and industrial and manufacturing companies. NOW Inc. was incorporated in 2013 and is headquartered in Houston, Texas.

Details
Name: NOW Inc.
11N
Exchange: DB
Founded: 2013
$1,180,841,864
108,799,779
Website: http://www.distributionnow.com
Address: NOW Inc.
7402 North Eldridge Parkway,
Houston,
Texas, 77041,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE DNOW Common Stock New York Stock Exchange US USD 20. May 2014
DB 11N Common Stock Deutsche Boerse AG DE EUR 20. May 2014
LSE 0K9J Common Stock London Stock Exchange GB USD 20. May 2014
BMV DNOW * Common Stock Bolsa Mexicana de Valores MX MXN 20. May 2014
Number of employees
Current staff
Staff numbers
4,500
NOW employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/16 21:53
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/08
Last earnings filing: 2019/11/06
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.