Recent News
On June 26, 2025 MRC Global and DNOW announced a definitive all-stock merger valuing the combined enterprise at approximately $1.5 billion including debt, with the new company operating under the DNOW name and an anticipated close in Q4 2025. Coverage on July 5, 2025 emphasized the transaction’s claimed $70 million of projected annual cost savings and the allocation of ownership between DNOW and MRC shareholders. A registrant filing on June 30, 2025 confirmed the combination and noted suspension of the previously authorized share repurchase program.
Technical Analysis
ADX at 19.21 indicates no trend; trend strength lacks confirmation even as event risk increases price dispersion. This moderates conviction in trend-following signals given the pending corporate transaction.
DI+ shows a peak & reversal, a bearish signal reflecting weakening directional buying pressure; DI- shows a dip & reversal, a bearish signal reflecting strengthening downside pressure. Together these directional-index developments bias near-term price movement lower relative to the recent sideways-to-up price action.
MACD at 0.29 with a peak & reversal and a signal line of 0.24 signals waning bullish momentum despite a positive absolute reading; momentum conditions therefore favor consolidation or a pullback rather than renewed acceleration.
MRO registers 29.14 and shows a dip & reversal; the positive MRO implies price above modeled target and heightened potential for a correction toward fair-value reference levels derived in valuation work.
RSI at 57.03 with a dip & reversal indicates moderate buying exhaustion compared with recent highs; momentum has room to re-test higher bands but currently reflects internal weakening.
Price sits at $15.15, above the 200-day average ($13.00), the 50-day average ($14.08) and the 20-day average ($14.62), consistent with a short-term up bias that lacks trend strength given ADX below 20. Price has crossed above the -1x Bollinger band and trades near the upper 1x Bollinger boundary ($15.26), increasing the probability of short-term reversion to the mean if merger-related selling intensifies.
Ichimoku components show the Chikou span above the cloud with Tenkan at $14.55 and Kijun at $14.19, signaling residual bullish structure; however, the directional indicators and MRO reduce the probability that bullish Ichimoku readings drive directional follow-through before deal-close volatility resolves.
Volume at 468,900 sits below the 10-day average (489,970) and well below the 50- and 200-day averages, implying limited participation on recent price moves and raising the likelihood that headline-driven flows will produce outsized price swings relative to technicals.
Fundamental Analysis
Revenue totaled $798,000,000 with revenue growth year-over-year of 274.427% and trailing revenue growth of 12.079%; sequential sales dynamics showed pockets of strength in the Gas Utilities sector while other end-markets moderated. QoQ revenue growth data show contraction in the most recent quarter, consistent with large project timing effects.
EBIT totaled $28,000,000, yielding an EBIT margin of 3.51% with a QoQ improvement of 38.805% and a YoY decline of 40.414%. The company’s EBIT margin sits below the industry peer mean of 28.299% and below the industry peer median of 21.284%, indicating lower operating profitability relative to peers by that measure.
Gross margin stands at 18.922% with a YoY decline of 8.998% and QoQ decline of 5.124%, reflecting margin pressure consistent with project mix and cost absorption effects. Operating margin at 2.632% fell YoY by 55.307% despite a QoQ gain of 4.114%.
Liquidity metrics show a current ratio of 1.84 and a quick ratio of 1.00, with a cash ratio of 0.13; these levels provide working-capital cover but limited cash-only headroom. Net working capital sits at $491,000,000 while change in working capital contributed a $79,000,000 cash inflow in the period noted.
Cash generation weakens: operating cash flow was negative $44,000,000 and free cash flow was negative $59,000,000, producing a free cash flow yield of -5.211% and free cash flow growth YoY of -18.809%. Free cash to net income stands at -453.846%, underscoring cash conversion stress relative to profit.
Balance-sheet leverage appears elevated for a distributor: total debt $622,000,000, net debt $374,000,000, debt-to-equity 116.045%, and debt-to-EBITDA at 15.95x. Interest coverage of 2.8x offers some buffer but produces limited headroom for incremental rates or margin compression.
Efficiency measures offer mixed signals: asset turnover at 0.4589 exceeds the industry peer mean of 0.1526 and the industry peer median of 0.1649, indicating relatively higher revenue generation per asset base; inventory turnover at 1.36 shows modest circulation with days inventory outstanding of ~76 days. Receivables turnover at 1.75 indicates extended collection cycles relative to efficient distributors.
Profitability returns remain low: return on equity 2.425% and return on assets 0.748%, reflecting thin margins and capital intensity. WMDST notes net income of $13,000,000 on these operating and cash metrics.
Valuation summary: enterprise multiple stands at 43.06 and forward P/E at 44.67 while forward revenue of $365,584,711 and a forward price target mean of $16.58 sit near current price; WMDST values the stock as over-valued given stretched multiple levels combined with cash-flow constraints and elevated leverage ahead of the announced merger.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-05 |
| NEXT REPORT DATE: | 2025-11-04 |
| CASH FLOW | Begin Period Cash Flow | $ 63.0 M |
| Operating Cash Flow | $ -44.00 M | |
| Capital Expenditures | $ -15.00 M | |
| Change In Working Capital | $ -79.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 12.0 M | |
| End Period Cash Flow | $ 75.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 798.0 M | |
| Forward Revenue | $ 365.6 M | |
| COSTS | ||
| Cost Of Revenue | $ 647.0 M | |
| Depreciation | $ 7.0 M | |
| Depreciation and Amortization | $ 11.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 777.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 151.0 M | |
| EBITDA | $ 39.0 M | |
| EBIT | $ 28.0 M | |
| Operating Income | $ 21.0 M | |
| Interest Income | — | |
| Interest Expense | $ 10.0 M | |
| Net Interest Income | $ -10.00 M | |
| Income Before Tax | $ 18.0 M | |
| Tax Provision | $ 5.0 M | |
| Tax Rate | 27.778 % | |
| Net Income | $ 13.0 M | |
| Net Income From Continuing Operations | $ 13.0 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ 0.28 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.8 B | |
| Intangible Assets | $ 399.0 M | |
| Net Tangible Assets | $ 137.0 M | |
| Total Current Assets | $ 1.1 B | |
| Cash and Short-Term Investments | $ 75.0 M | |
| Cash | $ 75.0 M | |
| Net Receivables | $ 469.0 M | |
| Inventory | $ 490.0 M | |
| Long-Term Investments | $ 36.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 438.0 M | |
| Short-Term Debt | $ 4.0 M | |
| Total Current Liabilities | $ 587.0 M | |
| Net Debt | $ 374.0 M | |
| Total Debt | $ 622.0 M | |
| Total Liabilities | $ 1.2 B | |
| EQUITY | ||
| Total Equity | $ 536.0 M | |
| Retained Earnings | $ -661.00 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.30 | |
| Shares Outstanding | 85.081 M | |
| Revenue Per-Share | $ 9.38 | |
| VALUATION | Market Capitalization | $ 1.1 B |
| Enterprise Value | $ 1.7 B | |
| Enterprise Multiple | 43.059 | |
| Enterprise Multiple QoQ | -19.838 % | |
| Enterprise Multiple YoY | 122.082 % | |
| Enterprise Multiple IPRWA | high: 81.177 MRC: 43.059 mean: 34.096 median: 33.686 low: -30.767 |
|
| EV/R | 2.104 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.31 | |
| Asset To Liability | 1.433 | |
| Debt To Capital | 0.537 | |
| Debt To Assets | 0.351 | |
| Debt To Assets QoQ | 7.457 % | |
| Debt To Assets YoY | 821.472 % | |
| Debt To Assets IPRWA | high: 1.005 MRC: 0.351 mean: 0.349 median: 0.281 low: 0.001 |
|
| Debt To Equity | 1.16 | |
| Debt To Equity QoQ | 9.575 % | |
| Debt To Equity YoY | 792.517 % | |
| Debt To Equity IPRWA | high: 4.438 mean: 1.162 MRC: 1.16 median: 0.675 low: 0.001 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.112 | |
| Price To Book QoQ | 9.698 % | |
| Price To Book YoY | -1.787 % | |
| Price To Book IPRWA | high: 8.224 mean: 3.538 median: 2.337 MRC: 2.112 low: -0.753 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 1.419 | |
| Price To Sales QoQ | -0.074 % | |
| Price To Sales YoY | 4.942 % | |
| Price To Sales IPRWA | high: 28.151 median: 8.514 mean: 8.468 MRC: 1.419 low: 0.206 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 44.665 | |
| Forward PE/G | — | |
| Forward P/S | 3.097 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 4.599 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.459 | |
| Asset Turnover Ratio QoQ | 7.245 % | |
| Asset Turnover Ratio YoY | 2.228 % | |
| Asset Turnover Ratio IPRWA | MRC: 0.459 high: 0.425 median: 0.165 mean: 0.153 low: 0.012 |
|
| Receivables Turnover | 1.752 | |
| Receivables Turnover Ratio QoQ | 0.883 % | |
| Receivables Turnover Ratio YoY | 0.967 % | |
| Receivables Turnover Ratio IPRWA | high: 5.629 mean: 2.501 MRC: 1.752 median: 1.486 low: 0.271 |
|
| Inventory Turnover | 1.362 | |
| Inventory Turnover Ratio QoQ | 4.548 % | |
| Inventory Turnover Ratio YoY | 9.031 % | |
| Inventory Turnover Ratio IPRWA | high: 23.074 mean: 3.432 median: 1.477 MRC: 1.362 low: 0.018 |
|
| Days Sales Outstanding (DSO) | 52.086 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 58.329 | |
| Cash Conversion Cycle Days QoQ | -8.648 % | |
| Cash Conversion Cycle Days YoY | -19.102 % | |
| Cash Conversion Cycle Days IPRWA | high: 258.765 MRC: 58.329 mean: 57.201 median: 37.221 low: -82.078 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.625 | |
| CapEx To Revenue | -0.019 | |
| CapEx To Depreciation | -2.143 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 981.0 M | |
| Net Invested Capital | $ 985.0 M | |
| Invested Capital | $ 985.0 M | |
| Net Tangible Assets | $ 137.0 M | |
| Net Working Capital | $ 491.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.128 | |
| Current Ratio | 1.836 | |
| Current Ratio QoQ | 9.011 % | |
| Current Ratio YoY | -11.843 % | |
| Current Ratio IPRWA | high: 5.901 MRC: 1.836 mean: 1.722 median: 1.315 low: 0.225 |
|
| Quick Ratio | 1.002 | |
| Quick Ratio QoQ | 10.205 % | |
| Quick Ratio YoY | -8.824 % | |
| Quick Ratio IPRWA | high: 5.054 mean: 1.306 MRC: 1.002 median: 1.0 low: 0.021 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 15.949 | |
| Cost Of Debt | 1.226 % | |
| Interest Coverage Ratio | 2.8 | |
| Interest Coverage Ratio QoQ | 40.0 % | |
| Interest Coverage Ratio YoY | -60.0 % | |
| Interest Coverage Ratio IPRWA | high: 19.818 median: 10.049 mean: 9.865 MRC: 2.8 low: -14.138 |
|
| Operating Cash Flow Ratio | -0.049 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 69.798 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.108 % | |
| Revenue Growth | 12.079 % | |
| Revenue Growth QoQ | -48.842 % | |
| Revenue Growth YoY | 274.427 % | |
| Revenue Growth IPRWA | high: 37.841 % MRC: 12.079 % median: 2.748 % mean: 1.251 % low: -47.474 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 18.922 % | |
| Gross Margin QoQ | -5.124 % | |
| Gross Margin YoY | -8.998 % | |
| Gross Margin IPRWA | high: 88.082 % mean: 34.465 % median: 31.238 % MRC: 18.922 % low: -11.161 % |
|
| EBIT Margin | 3.509 % | |
| EBIT Margin QoQ | 38.805 % | |
| EBIT Margin YoY | -40.414 % | |
| EBIT Margin IPRWA | high: 78.109 % mean: 28.299 % median: 21.284 % MRC: 3.509 % low: -53.941 % |
|
| Return On Sales (ROS) | 2.632 % | |
| Return On Sales QoQ | 4.114 % | |
| Return On Sales YoY | -55.307 % | |
| Return On Sales IPRWA | high: 71.161 % mean: 25.042 % median: 18.885 % MRC: 2.632 % low: -56.009 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -59.00 M | |
| Free Cash Flow Yield | -5.211 % | |
| Free Cash Flow Yield QoQ | -1152.727 % | |
| Free Cash Flow Yield YoY | -206.586 % | |
| Free Cash Flow Yield IPRWA | high: 18.006 % median: 1.36 % mean: 1.351 % MRC: -5.211 % low: -17.178 % |
|
| Free Cash Growth | -1280.0 % | |
| Free Cash Growth QoQ | 1272.757 % | |
| Free Cash Growth YoY | -1880.87 % | |
| Free Cash Growth IPRWA | high: 710.046 % mean: 58.516 % median: -19.815 % low: -813.176 % MRC: -1280.0 % |
|
| Free Cash To Net Income | -4.538 | |
| Cash Flow Margin | -3.634 % | |
| Cash Flow To Earnings | -2.231 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.748 % | |
| Return On Assets QoQ | -156.581 % | |
| Return On Assets YoY | -53.799 % | |
| Return On Assets IPRWA | high: 4.459 % median: 2.59 % mean: 2.265 % MRC: 0.748 % low: -7.595 % |
|
| Return On Capital Employed (ROCE) | 2.359 % | |
| Return On Equity (ROE) | 0.024 | |
| Return On Equity QoQ | -157.876 % | |
| Return On Equity YoY | -57.723 % | |
| Return On Equity IPRWA | high: 0.199 median: 0.045 mean: 0.043 MRC: 0.024 low: -0.205 |
|
| DuPont ROE | 2.45 % | |
| Return On Invested Capital (ROIC) | 2.053 % | |
| Return On Invested Capital QoQ | 14.95 % | |
| Return On Invested Capital YoY | -98.879 % | |
| Return On Invested Capital IPRWA | high: 7.199 % mean: 3.993 % median: 3.423 % MRC: 2.053 % low: -7.343 % |
|