NOW Inc.: A Combination Of Pipeline And Clear Energy Projects Will Fuel Its Low Relative Valuation

Nov. 09, 2022 1:59 PM ETNOW Inc. (DNOW)
Badsha Chowdhury profile picture
Badsha Chowdhury


  • Higher demand in crude pipeline transfer, chemical injection applications, and water transfer can benefit NOW in the short-to-medium term.
  • Along with the traditional MRO and PVF sales, NOW sees prospects in carbon capture and DigitalNOW projects.
  • Despite negative cash flows, robust liquidity will allow shareholders' returns through share repurchase.
  • I believe the stock is relatively undervalued at this level.

Oil Refinery And Pipeline In Desert During Sunset


DNOW Is Still Attractive

I discussed NOW Inc.'s (NYSE:DNOW) strengths and weaknesses in detail in my previous article. Despite the short-term weakness in the economy, demand is rising in crude pipeline transfer, chemical injection applications, and water transfer projects. Its performance

Producer Price Index: Iron and Steel Mills and Ferroalloy Manufacturing Index

Federal Reserve Bank of St. Louis

Change in Industry Indicators

NOW Inc.'s Filings

Quarterly revenues

NOW Inc.'s Filings

Rating history

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Relative valuation

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Total returns

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This article was written by

Badsha Chowdhury profile picture
I have more than 14 years of experience in analyzing and writing on stocks. I write on both long and short sides in an unbiased manner. I have been covering the energy sectors for the past 7 years, with the primary focus on the oilfield equipment services sector. I also cover the Industrial Supply industry. I occasionally co-author with Seeking Alpha contributor Thomas Prescott.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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