DNOW Announces Fourth Quarter and Full-Year 2025 Earnings Conference CallFeb 17, 2026 6:45 AM Eastern Standard Time# DNOW Announces Fourth Quarter and Full-Year 2025 Earnings Conference CallShare---HOUSTON--([BUSINESS WIRE])--DNOW Inc. (NYSE:DNOW) has scheduled a conference call to discuss the results for the fourth quarter and full-year 2025 on Friday, February 20, 2026 at 8:00 am (US Central Time). Financial results for the fourth quarter and the year ending December 31, 2025 are expected to be released t ...

Core Viewpoint - Tejara Capital Ltd has established a new position in DNOW, acquiring 685,617 shares valued at approximately $9.08 million, indicating confidence in the company's growth potential and market position [2][3]. Company Overview - DNOW Inc. is a leading distributor of energy and industrial products, focusing on comprehensive supply chain solutions and value-added services for critical infrastructure sectors [5]. - The company operates a distribution-based business model, generating revenue through the sale of consumable products and equipment, complemented by supply chain and materials management solutions [8]. Financial Performance - As of February 4, DNOW shares were priced at $16.05, with a market capitalization of $3 billion and a revenue of $2.43 billion over the trailing twelve months (TTM) [4]. - The company reported a net income of $95 million TTM and generated $634 million in revenue in the third quarter, with an EBITDA of $51 million, representing 8% of sales [10]. - DNOW has zero long-term debt and a liquidity position of approximately $629 million, providing financial flexibility [10]. Strategic Positioning - The new stake by Tejara Capital adds a steady, cash-generative industrial layer to its portfolio, benefiting from energy activity without direct commodity risk [9]. - DNOW serves various sectors, including upstream, midstream, and downstream energy companies, positioning itself as a key partner for operations seeking efficiency and reliability [8]. Future Outlook - The company is working towards closing an all-stock acquisition of MRC Global, a deal valued at around $1.5 billion, which is expected to enhance its scale and product reach [10]. - The essential components sold by DNOW are critical for maintaining energy and industrial systems, suggesting that the business will benefit from rising activity levels while its cash position offers downside protection during market downturns [11].

Core Insights - The current Q4 earnings season highlights the importance of cash flow over mere profit numbers for investors seeking to identify stocks with strong financial health [1][2] Cash Flow Importance - Cash flow is a critical indicator of a company's financial health, providing flexibility for decision-making, investment opportunities, and sustaining growth [2] - Companies with positive cash flow can meet debt obligations, cover expenses, reinvest, and return wealth to shareholders, while negative cash flow indicates declining liquidity and reduced operational flexibility [4] Growth and Management Efficiency - Positive cash flow alone does not guarantee future growth; increasing cash flow is essential as it reflects management's efficiency in cash management and reduces reliance on external financing [5] Screening Parameters - A screening process was conducted to identify stocks with increasing cash flow, focusing on those whose latest quarter cash flow met or exceeded the 5-year average per share [6] - Stocks were selected based on Zacks Rank 1, average broker ratings, current price thresholds, and VGM Scores of B or better [7] Selected Stocks - Enova International, Inc. (ENVA) shows improving cash flow trends, with a revised Zacks Consensus Estimate for 2026 earnings up by 6.2% to $15.13 per share and a VGM Score of A [8] - Cimpress plc (CMPR) benefits from rising cash flows due to increased demand for customized print and digital products, with a 1.1% improvement in the 2026 earnings estimate to $3.54 and a VGM Score of A [9] - DNOW Inc. (DNOW) is a leading provider in energy and industrial solutions, with an 8.7% upward revision in the 2026 earnings estimate to $1.00 and a VGM Score of A [10] - Pursuit Attractions and Hospitality, Inc. (PRSU) operates various hospitality destinations, with a 13.9% increase in the 2026 earnings estimate to $1.31 and a VGM Score of A [11]

Core Insights - The importance of cash flow generation is emphasized as a critical factor for a company's existence, development, and success, especially amid global economic uncertainty [2][4] - Companies with positive cash flow can meet obligations, reinvest, and return wealth to shareholders, while negative cash flow indicates liquidity issues [4][5] - A focus on companies with increasing cash flow is essential for identifying potential investment opportunities [5][6] Company Analysis - DNOW Inc. (DNOW), Pursuit Attractions and Hospitality, Inc. (PRSU), Riley Exploration Permian, Inc. (REPX), and RF Industries, Ltd. (RFIL) are highlighted as strong picks due to improving cash flow trends [3][8] - DNOW has an expected earnings growth rate of 20.5% for 2026, with a consensus estimate revised upward by 8.7% over the past 30 days, and holds a VGM Score of A [9] - PRSU's earnings per share estimates for 2025 and 2026 have improved by 1.6% and 10.3% respectively over the past 60 days, with a VGM Score of B [10] - REPX's earnings per share estimates for 2025 and 2026 have increased by 5.0% and 14.2% respectively over the past 60 days, also holding a VGM Score of B [11] - RFIL's fiscal 2026 earnings estimate has been revised by 22.9% over the past week, maintaining a VGM Score of B [12] Screening Parameters - Stocks were screened for those with cash flow in the latest quarter at least equal to or greater than the 5-year average cash flow per common share, indicating a positive trend [6] - Additional criteria included a Zacks Rank of 1 (Strong Buy), an average broker rating of 1, a current price of at least $5, and a VGM Score of B or better [7]

Core Insights - The price-to-earnings (P/E) ratio is a popular metric among investors for identifying undervalued stocks, but it has limitations, including its inability to value loss-making firms and susceptibility to accounting manipulation [1][5] - The EV-to-EBITDA ratio is considered a more comprehensive alternative, providing a clearer picture of a company's valuation by accounting for debt and offering insights into profitability [2][3][4] Valuation Metrics - EV-to-EBITDA is calculated by dividing a company's enterprise value (EV) by its earnings before interest, taxes, depreciation, and amortization (EBITDA), making it a useful tool for assessing companies with varying levels of debt [3][4] - A lower EV-to-EBITDA ratio indicates a potentially undervalued stock, making it attractive for acquisition targets [4][5] - The P/E ratio does not account for debt, which can lead to misleading valuations, especially for companies with significant leverage [4][5] Screening Criteria for Value Stocks - Parameters for screening value stocks include an EV-to-EBITDA ratio lower than the industry median, a P/E ratio below the industry median, and a price-to-book (P/B) ratio less than the industry average [8][10] - Additional criteria include a price-to-sales (P/S) ratio lower than the industry median, estimated one-year EPS growth greater than or equal to the industry median, and a minimum average trading volume of 50,000 shares [10][11] Selected Stocks - Plains GP Holdings, L.P. (PAGP) has a Zacks Rank of 1 and a Value Score of A, with an expected year-over-year earnings growth rate of 27% for 2026 [12][13] - DNOW Inc. (DNOW) also holds a Zacks Rank of 1 and a Value Score of A, with an expected earnings growth rate of 18.5% for 2026 [13][14] - Gibraltar Industries, Inc. (ROCK) has a Zacks Rank of 2 and a Value Score of A, with an expected earnings growth rate of 11% for 2026 [14] - Miller Industries, Inc. (MLR) is another Zacks Rank 2 stock with a Value Score of A, showing a remarkable expected earnings growth rate of 139.5% for 2026 [15] - Sally Beauty Holdings, Inc. (SBH) has a Zacks Rank of 2 and a Value Score of A, with an expected earnings growth rate of 8.4% for fiscal 2026 [15][16]

Core Viewpoint - The company DNOW, Inc. is expected to experience a positive shift in momentum due to the infusion from MRC, which is significant in a stagnant market. This is evidenced by a 10% increase in stock price recently [1]. Company Analysis - DNOW, Inc. has shown a notable stock price increase of 10% recently, indicating positive investor sentiment [1]. - The infusion from MRC is anticipated to be a catalyst for change in the company's performance, suggesting potential growth opportunities [1]. Industry Context - The analysis is situated within the energy sector, specifically focusing on oilfield equipment services, which has been a primary area of coverage for over 7 years [1].

Core Insights - The article emphasizes the importance of strong foundational companies in the technology, industrial, and conglomerate sectors for long-term success [1] Group 1: Company Focus - Companies with robust financials and strategic approaches are highlighted as having the potential for sustained performance [1] - The analysis combines financial metrics with narrative storytelling to provide a comprehensive understanding of market dynamics [1] Group 2: Industry Perspective - The focus on technology, industrial, and conglomerate sectors indicates a targeted interest in industries that are likely to drive future growth [1]

Core Insights - The article emphasizes the importance of strong foundational companies in the technology, industrial, and conglomerate sectors for long-term success [1] Group 1: Company Focus - Companies with robust financials and strategic narratives are highlighted as favorable investment opportunities [1] - The analysis combines financial metrics with storytelling to provide insights into market performance [1] Group 2: Industry Perspective - The technology, industrial, and conglomerate sectors are identified as key areas of interest for investment analysis [1]

Group 1 - Dnow Inc. shares are currently trading at $14.27, reflecting a 0.71% increase, with a 13.52% rise over the past month, but a 1.04% decrease over the past year [1] - The P/E ratio is a critical metric for investors, comparing the current share price to the company's EPS, indicating market expectations for future performance [5] - Dnow has a lower P/E ratio compared to the industry average of 22.78 for Trading Companies & Distributors, suggesting potential undervaluation despite possible concerns about performance [6] Group 2 - A low P/E ratio can indicate undervaluation but may also reflect weak growth prospects or financial instability, necessitating a cautious approach [8] - The P/E ratio should be considered alongside other financial metrics, industry trends, and qualitative factors for a comprehensive analysis of a company's financial health [9]

Core Insights - ServiceNow (NOW) is enhancing its collaboration with Microsoft (MSFT) through new integrations aimed at improving orchestration, governance, and collaboration across AI agents and workflows [1][2] - The partnership will connect ServiceNow's AI Platform with Microsoft 365, Copilot, Foundry, and GitHub, facilitating better management of autonomous AI agents [1][2] - ServiceNow has raised its subscription revenue guidance for 2025 to between $12.835 billion and $12.845 billion, indicating a 20% growth on a non-GAAP constant currency basis [3] Integration and Collaboration - The integration of NOW's AI Control Tower with Microsoft Foundry and Copilot Studio will enable automatic governance across AI agents on Microsoft platforms [2] - ServiceNow Build Agent's integration with GitHub allows secure access to GitHub issues, pull requests, and discussions [2] - Upcoming integration of Now Assist with Microsoft Agent 365 will bring enterprise workflows into Microsoft Word, Outlook, and Teams [2] Competitive Landscape - ServiceNow faces significant competition from Atlassian (TEAM) and Salesforce (CRM), both of which are enhancing their subscription-based solutions and AI capabilities [4][5] - Atlassian has seen a CAGR of approximately 40% in its subscription segment from fiscal 2020 to fiscal 2025, driven by demand for automated communication systems [4] - Salesforce reported a 140% year-over-year increase in Data Cloud customer adoption, indicating strong demand for AI tools that enhance enterprise workflows [5] Financial Performance and Valuation - ServiceNow's stock has declined by 24.6% year to date, underperforming the broader Zacks Computer and Technology sector, which has returned 25.9% [6] - The forward 12-month price/sales ratio for NOW is 10.83X, significantly higher than the sector average of 6.61X, suggesting that the stock may be overvalued [9] - The Zacks Consensus Estimate for fourth-quarter 2025 earnings is $4.35 per share, reflecting an 18.53% year-over-year growth [11]