Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<ul><li>DNOW’s underlying strategy is to increase earnings and free cash flow by gaining share in its traditional energy markets, while capitalizing on new revenue opportunities in the energy evolution and adjacent industrial markets.</li><li>DNOW is reaping the rewards of management’s efforts to provide procurement and supply chain solutions to customers through innovative technology and an efficient regionalized distribution model to increase market share and profitability.</li><li>Using the rig count as an activity proxy, average revenue per global rig in 2Q24 was $4,086 (~$1.5 million annualized), a 19% increase Q/Q and 12% Y/Y.</li></ul>

DNOW’s underlying strategy is to increase earnings and free cash flow by gaining share in its traditional energy markets, while capitalizing on new revenue opportunities in the energy evolution and adjacent industrial markets.DNOW is reaping the rewards of management’s efforts to provide procurement and supply chain solutions to customers through innovative technology and an efficient regionalized distribution model to increase market share and profitability.Using the rig count as an activity proxy, average revenue per global rig in 2Q24 was $4,086 (~$1.5 million annualized), a 19% increase Q/Q and 12% Y/Y.

DNOW, Inc. - Free Cash Flow Profile Supports Management's Value Proposition

NOW Inc

DNOW, Inc. - Free Cash Flow Profile Supports Management's Value Proposition