NOW Inc. [DNOW] is following upward trend in the market concluded with the last trading session. The shares of the Basic Materials sector company has a current value of $11.42 after DNOW shares went up by 3.07% during the last trading session. One of the reasons why Basic Materials stocks may go bullish is increased momentum in the press.

NOW Inc. [NYSE:DNOW]: Analyst Rating and Earnings

Its stock price has been found in the range of 10.00 to 15.93. This is compared to its latest closing price of $11.08.

Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Wed 19 Feb (In 73 Days).

Fundamental Analysis of NOW Inc. [DNOW]

Now let’s turn to look at profitability: with a current Operating Margin for NOW Inc. [DNOW] sitting at +2.01 and its Gross Margin at +20.15, this company’s Net Margin is now 1.90%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 4.68, and its Return on Invested Capital has reached 5.10%. Its Return on Equity is 4.25, and its Return on Assets is 2.88. These metrics suggest that this NOW Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, NOW Inc. [DNOW] has generated a Total Debt to Total Equity ratio of 10.87. Similarly, its Total Debt to Total Capital is 9.81, while its Total Debt to Total Assets stands at 7.35.

What about valuation? This company’s Enterprise

Value to EBITDA is 12.10 and its Total Debt to EBITDA Value is 1.27. The Enterprise Value to Sales for this firm is now 0.41, and its Total Debt to Enterprise Value stands at 0.10. NOW Inc. [DNOW] has a Price to Book Ratio of 1.04, a Price to Cash Flow Ratio of 17.32 and P/E Ratio of 21.49. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.

Shifting the focus to workforce efficiency, NOW Inc. [DNOW] earns $694,889 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.91 and its Total Asset Turnover is 1.76. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.40 and its Current Ratio is 2.76. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

NOW Inc. [DNOW] has 109.00M shares outstanding, amounting to a total market cap of $1.24B. Its stock price has been found in the range of 10.00 to 15.93. At its current price, it has moved down by -28.29% from its 52-week high, and it has moved up 14.20% from its 52-week low.

This stock’s Beta value is currently 1.42, which indicates that it is 2.82% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 53.44. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is NOW Inc. [DNOW] a Reliable Buy?

Shares of NOW Inc. [DNOW], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.