DNOW Inc. (DNOW) exhibits 17.0% gross margins and -3.6% return on invested capital within Consumer Discretionary (Oil and Gas Field Machinery), balanced against a 24.0x enterprise multiple and 4.8% implied options volatility.
Sustained 17.0% gross profitability converts into -3.3% operating margin and -3.6% ROIC, outpacing sector cost of capital.
ROIC: -3.6% // GM: 17.0%YoY revenue trajectory of +18.8% paired with 4.45% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +18.8% // FCF YLD: 4.45%Altman Z-Score of 1.81 and Piotroski F-Score of 5/9 indicate low near-term refinancing stress.
ALTMAN Z: 1.81 // F-SCORE: 5/9Trading at 24.0x trailing P/E (— Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 24.0x // EV/EBITDA: —Options market prices a ±5.2% implied move with a 0.85 put/call ratio around $16.66 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Oil and Gas Field Machinery require continuous execution to defend 0.0% net margins.
NET MARGIN: 0.0% // D/E: 0.45x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
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