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NYSE:NOW qualifies as a high growth stock and is consolidating.

By Mill Chart

Last update: Apr 10, 2024

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether SERVICENOW INC (NYSE:NOW) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but SERVICENOW INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

How do we evaluate the Growth for NYSE:NOW?

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:NOW has achieved a 9 out of 10:

  • The Earnings Per Share has grown by an impressive 41.90% over the past year.
  • Measured over the past years, NOW shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.92% on average per year.
  • The Revenue has grown by 23.82% in the past year. This is a very strong growth!
  • NOW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.02% yearly.
  • NOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.24% yearly.
  • NOW is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.56% yearly.

Unpacking NYSE:NOW's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:NOW scores a 7 out of 10:

  • NOW has an Altman-Z score of 10.71. This indicates that NOW is financially healthy and has little risk of bankruptcy at the moment.
  • NOW's Altman-Z score of 10.71 is amongst the best of the industry. NOW outperforms 89.53% of its industry peers.
  • The Debt to FCF ratio of NOW is 0.55, which is an excellent value as it means it would take NOW, only 0.55 years of fcf income to pay off all of its debts.
  • NOW has a better Debt to FCF ratio (0.55) than 81.59% of its industry peers.
  • A Debt/Equity ratio of 0.20 indicates that NOW is not too dependend on debt financing.
  • The current and quick ratio evaluation for NOW is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Insights: NYSE:NOW

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:NOW has achieved a 8:

  • With an excellent Return On Assets value of 9.96%, NOW belongs to the best of the industry, outperforming 91.34% of the companies in the same industry.
  • With an excellent Return On Equity value of 22.69%, NOW belongs to the best of the industry, outperforming 92.78% of the companies in the same industry.
  • The Return On Invested Capital of NOW (6.19%) is better than 83.03% of its industry peers.
  • The 3 year average ROIC (4.58%) for NOW is below the current ROIC(6.19%), indicating increased profibility in the last year.
  • NOW has a better Profit Margin (19.30%) than 89.53% of its industry peers.
  • In the last couple of years the Profit Margin of NOW has grown nicely.
  • NOW's Operating Margin of 8.49% is amongst the best of the industry. NOW outperforms 80.14% of its industry peers.
  • NOW's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 78.59%, NOW is doing good in the industry, outperforming 79.78% of the companies in the same industry.

Why is NYSE:NOW a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:NOW has a 8 as its setup rating:

NOW has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 779.66, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of NOW

Check the latest full technical report of NOW for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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SERVICENOW INC

NYSE:NOW (5/24/2024, 7:04:01 PM)

After market: 740 +1.49 (+0.2%)

738.51

-19.64 (-2.59%)

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