DNOW Inc. distributes pipe, valves, fittings, and pumps in the United States, Canada, and internationally. The company offers flanges, gaskets, fasteners, electrical, instrumentation, artificial lift, and pumping systems, process and production equipment, production measurement technology, maintenance, repair and operating consumables (MRO), and general and specialty products; personal protective equipment; and mill, tools, safety supplies, as well as vapor recovery systems …
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Competitive advantage assessment
Key strengths
Strong Interest Coverage & Conservative LeverageDebt serviceability is strong (score 0.84), with robust interest coverage.
Key risks
Commodity Pressure / Weak DifferentiationGross margin at 15.8th percentile with high volatility suggests weak pricing power or commoditized products.
ROIC Below WACC or PeersROIC at 5.3th percentile suggests inefficient capital deployment.
The dashed ring is the peer median. Defense scores are percentile ranks
against peers, so 50 is roughly the typical company in this group.
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DNOW Inc. ranks #18 of 21
scored companies in Industrial Distribution by moat score — the top 86%.
The widest moat in the group is Fastenal Company (FAST)
at 91/100.
Moat scores for companies ranked near DNOW in Industrial Distribution
Pricing power is the ability to raise prices without losing volume.
Cost Advantage
Score 31
· 15% of the moat score
A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.
Customer Stickiness
Score 35
· 15% of the moat score
Stickiness is what makes revenue repeat without being re-won every year.
Capital Efficiency
Score 12
· 18% of the moat score
Capital efficiency asks what the company earns on the money tied up in the business.
Resilience
Score 64
· 17% of the moat score
Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.
Scale & Market Position
Score 16
· 15% of the moat score
Scale matters only when it converts into economics.
DNOW Inc. (DNOW) scores 25 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #18 of 21 scored companies in Industrial Distribution, the top 86%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 20 companies in Industrial Distribution. Its strongest defense is Resilience (64/100) and its weakest is Pricing Power (8/100).
How does DNOW Inc. compare with other Industrial Distribution companies?
DNOW Inc. ranks #18 of 21 scored companies in Industrial Distribution by moat score. The widest moat in Industrial Distribution is Fastenal Company (FAST) at 91/100. The companies ranked closest are Resideo Technologies, Inc. (REZI) at 40 just above it and Bluelinx Holdings Inc. (BXC) at 17 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 20 companies in Industrial Distribution. The defenses are then weighted to produce the overall score out of 100.
Why is DNOW Inc. scored with the Corporate Default template?
Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.
Which competitive defenses are measured for DNOW Inc.?
The Corporate Default template measures 6 defenses, and DNOW scores: Pricing Power (8), Cost Advantage (31), Customer Stickiness (35), Capital Efficiency (12), Resilience (64), Scale & Market Position (16). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
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