DNOW Inc.
DNOW Industrials Industrial Distribution
DNOW Inc.’s revenue for fiscal 2025 (year ended December 2025) was $2.8 billion, up 18.8% from fiscal 2024. In the quarter to June 2026, revenue grew 108.1%, EPS fell 182.5% and free cash flow grew 202.4%, each against the same quarter a year earlier. Revenue growth for five consecutive years.
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DNOW Inc. (DNOW) Altman Z-score
DNOW Inc.'s Altman Z-score for fiscal 2025 is 1.30, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.30 | (1.86) |
| FY2024 | 3.15 | 0.01 |
| FY2023 | 3.14 | 0.03 |
| FY2022 | 3.11 | 1.13 |
| FY2021 | 1.98 | 1.20 |
| FY2020 | 0.77 | (2.38) |
| FY2019 | 3.15 | (0.01) |
| FY2018 | 3.17 | 0.54 |
| FY2017 | 2.62 | (1.23) |
| FY2016 | 3.85 | 0.45 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.33 | — | 0.40 | |
| Retained earnings / total assets | (0.21) | — | −0.30 | |
| EBIT / total assets | (0.02) | — | −0.08 | |
| Market value of equity / total liabilities | 0.93 | — | 0.56 | |
| Sales / total assets | 0.72 | — | 0.72 | |
| Altman Z-score | Distress zone | 1.30 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 2.72 | ||
Z and Z″ put DNOW Inc. in different zones: distress zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| GIC Global Industrial Company compare | 6.2× |
| MSM MSC Industrial Direct Company, Inc. compare | 5.3× |
| SITE SiteOne Landscape Supply, Inc. compare | 4.7× |
| POOL Pool Corporation compare | 4.6× |
| XMTR Xometry, Inc. compare | 4.6× |
| DXPE DXP Enterprises, Inc. compare | 3.3× |
| DSGR Distribution Solutions Group, Inc. compare | 2.3× |
| REZI Resideo Technologies, Inc. compare | 1.8× |
| DNOW DNOW Inc. | 1.3× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets