DNOW - DNOW: An Attractive Valuation With Strong Financials And Outlook
2024-02-21 07:57:17 ET
Summary
- DNOW Inc. experienced reduced sales in the Canada segment, but overall revenue grew by 8.7% in FY23.
- Near-term weakness is expected in the U.S. and Canada segments, but strength in the International segment will support revenue growth in FY24.
- DNOW's focus on capitalizing on increasing projects and pursuing M&As with higher profitability and a discounted valuation makes it an attractive buying opportunity with good long-term prospects.
The Thesis
DNOW Inc. (DNOW) continued to experience reduced sales, primarily in the Canada segment, due to reduced project spend in the region. However, overall revenue saw 8.7% growth for FY23. The company's near term still appears to be weak due to continued pressure in the U.S. and Canada region, however, strength in the International segment should support the company's revenue growth in FY24....
DNOW: An Attractive Valuation With Strong Financials And Outlook