DNOW Inc. Financial Overview: A Mixed Picture Amid Challenges

Font: Financial Modeling Prep  • Feb 20, 2026

• Earnings Per Share (EPS) of -$1.04, significantly below the estimated $0.15, indicating financial challenges.
• Actual revenue of $959 million fell short of the estimated $969.5 million, suggesting difficulties in meeting sales targets.
• A strong current ratio of about 2.34, indicating a good position to meet short-term obligations despite a negative price-to-earnings (P/E) ratio.

DNOW Inc., listed on the NYSE:DNOW, is a company that provides distribution services to the energy and industrial sectors. It offers a wide range of products, including pipes, valves, and fittings, as well as supply chain management solutions. DNOW competes with other companies in the distribution and supply chain management industry, striving to maintain its market position.

On February 20, 2026, DNOW reported its earnings, revealing an earnings per share (EPS) of -$1.04, which was significantly below the estimated EPS of $0.15. This indicates that the company is currently experiencing financial challenges. The negative EPS reflects the company's inability to generate profit per share, which can be concerning for investors.

DNOW's actual revenue for the period was $959 million, falling short of the estimated $969.5 million. This shortfall in revenue suggests that the company faced difficulties in meeting its sales targets. Despite this, DNOW's price-to-sales ratio of 0.48 indicates that its stock is valued at less than half of its sales, which might attract investors looking for undervalued opportunities.

The company's financial health is further highlighted by its negative price-to-earnings (P/E) ratio of approximately -22.53, as highlighted by Seeking Alpha. This negative ratio indicates that DNOW is currently experiencing losses. However, the company's debt-to-equity ratio of approximately 0.24 shows a relatively low level of debt compared to its equity, which can be seen as a positive aspect of its financial structure.

DNOW maintains a strong current ratio of about 2.34, suggesting it has more than twice the current assets needed to cover its current liabilities. This indicates that the company is in a good position to meet its short-term obligations. Despite the challenges faced, DNOW's financial metrics provide a mixed picture of its current situation, with some areas of strength and others requiring attention.