Now Inc Intrinsic Value – NOW INC Reports Earnings Results for Second Quarter of Fiscal Year 2023
August 4, 2023
🌥️Earnings Overview
On August 2nd, 2023, NOW INC ($NYSE:DNOW) announced their financial results for the second quarter of 2023, which ended on June 30th. The total revenue for the quarter was USD 594.0 million, an impressive 10.2% increase compared to the same quarter in the prior year. Moreover, the company’s net income was USD 34.0 million, a significant 30.8% growth from the same quarter in the year before.
Stock Price
On Wednesday, NOW INC reported their earnings results for the second quarter of fiscal year 2023. The stock opened at $10.9 and closed at $10.5, marking a 9.6% drop from its previous closing price of 11.6. This marks the third consecutive quarter of the company’s profitability dipping, as the company has struggled to protect its profits amid the challenging business environment. Despite the decrease in net income and earnings per share, NOW INC reported a 3% increase in revenue year-on-year. The company attributed this increase to higher sales of new products released in the first half of the year, as well as increased efficiency in production and marketing costs.
NOW INC’s future looks uncertain, as the company faces an uncertain economic environment in the coming quarters. Many analysts believe that NOW INC will need to make changes to its strategy in order to protect its profits over the coming year. Investors continue to watch the stock closely, as it remains volatile in the face of fluctuating market conditions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Now Inc. More…
| Total Revenues | Net Income | Net Margin |
| 2.3k | 137 | 6.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Now Inc. More…
| Operations | Investing | Financing |
| 130 | -105 | -57 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Now Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.42k | 543 | 8.19 |
Key Ratios Snapshot
Some of the financial key ratios for Now Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.9% | 46.3% | 6.5% |
| FCF Margin | ROE | ROA |
| 5.0% | 10.9% | 6.6% |
Analysis – Now Inc Intrinsic Value
At GoodWhale, we recently conducted a financial analysis of NOW INC. After applying our proprietary Valuation Line, we estimate that the fair value of NOW INC share is around $12.8. Currently, the stock is traded at $10.5, which is a fair price that is undervalued by 18.0%. Therefore, we believe that NOW INC is an exciting opportunity for investors to purchase a stock at a discounted price that holds long-term potential. We believe that NOW INC has strong fundamentals and is well-positioned to capitalize on long-term growth opportunities. More…
Peers
NOW Inc is an American provider of oilfield products and services with operations in the United States, Canada, Latin America, the Middle East, Africa, and Asia Pacific. The company’s product and service offerings include drill pipes, tubing, casing, downhole completion tools, pressure control equipment, and oil country tubular goods. NOW Inc’s competitors include Oil States International Inc, NexTier Oilfield Solutions Inc, and RPC Inc.
– Oil States International Inc ($NYSE:OIS)
The company has a market cap of 460.1M as of 2022 and a Return on Equity of -1.47%. The company is engaged in the exploration, production, and development of oil and gas properties. The company has operations in the United States, Canada, Ecuador, the United Kingdom, and China.
– NexTier Oilfield Solutions Inc ($NYSE:NEX)
NexTier Oilfield Solutions Inc is a leading provider of oilfield services. The company has a market cap of 2.58B and a ROE of 20.02%. The company provides a wide range of services including drilling, completion, and production services. The company has a strong presence in the United States and Canada.
– RPC Inc ($NYSE:RES)
RPC Inc is a publicly traded company with a market capitalization of $2.21 billion as of 2022. The company has a return on equity of 16.65%. RPC Inc provides a variety of services including oil and gas exploration, production, and transportation. The company also provides environmental services, such as oil spill response and cleanup, and pipeline integrity testing.
Summary
Now Inc‘s financial results for the second quarter of fiscal year 2023 (ending June 30th, 2023) showed strong growth in revenue and net income. Revenue was up 10.2% year-over-year to USD 594.0 million while net income was up 30.8% to USD 34.0 million. Despite these positive results, the stock price dropped on the day of the announcement.
This could be due to a variety of factors, such as market sentiment, weak guidance, or a perceived lack of value in the stock. Investors should do their own due diligence to understand why the share price dropped, and make an informed decision on whether to invest in the company or not.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
