SERVICENOW INC (1NOW.MI) Stock Fundamental Analysis
BIT:1NOW - Euronext Milan - US81762P1021 - Common Stock - Currency: EUR
Taking everything into account, 1NOW scores 6 out of 10 in our fundamental rating. 1NOW was compared to 98 industry peers in the Software industry. 1NOW scores excellent on profitability, but there are some minor concerns on its financial health. 1NOW shows excellent growth, but is valued quite expensive already. With these ratings, 1NOW could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
1NOW had positive earnings in the past year.
1NOW had a positive operating cash flow in the past year.
1NOW had positive earnings in each of the past 5 years.
In the past 5 years 1NOW always reported a positive cash flow from operatings.
1.2 Ratios
1NOW has a Return On Assets of 7.33%. This is in the better half of the industry: 1NOW outperforms 69.39% of its industry peers.
The Return On Equity of 1NOW (15.17%) is better than 71.43% of its industry peers.
1NOW has a better Return On Invested Capital (9.56%) than 73.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1NOW is significantly below the industry average of 12.15%.
The last Return On Invested Capital (9.56%) for 1NOW is above the 3 year average (6.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 15.17% | ||
| ROIC | 9.56% |
ROA(3y)6.46%
ROA(5y)4.58%
ROE(3y)14.66%
ROE(5y)10.88%
ROIC(3y)6.51%
ROIC(5y)5.28%
1.3 Margins
1NOW's Profit Margin of 13.41% is fine compared to the rest of the industry. 1NOW outperforms 66.33% of its industry peers.
In the last couple of years the Profit Margin of 1NOW has declined.
Looking at the Operating Margin, with a value of 12.93%, 1NOW is in the better half of the industry, outperforming 66.33% of the companies in the same industry.
1NOW's Operating Margin has improved in the last couple of years.
1NOW has a better Gross Margin (78.92%) than 67.35% of its industry peers.
In the last couple of years the Gross Margin of 1NOW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.93% | ||
| PM (TTM) | 13.41% | ||
| GM | 78.92% |
OM growth 3Y41.76%
OM growth 5Y59.12%
PM growth 3Y49.27%
PM growth 5Y-6.45%
GM growth 3Y0.91%
GM growth 5Y0.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1NOW is destroying value.
1NOW has more shares outstanding than it did 1 year ago.
1NOW has more shares outstanding than it did 5 years ago.
1NOW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.56 indicates that 1NOW is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1NOW (11.56) is better than 92.86% of its industry peers.
1NOW has a debt to FCF ratio of 0.41. This is a very positive value and a sign of high solvency as it would only need 0.41 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.41, 1NOW belongs to the top of the industry, outperforming 88.78% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that 1NOW is not too dependend on debt financing.
The Debt to Equity ratio of 1NOW (0.15) is better than 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 11.56 |
ROIC/WACC0.84
WACC11.45%
2.3 Liquidity
1NOW has a Current Ratio of 1.12. This is a normal value and indicates that 1NOW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.12, 1NOW is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that 1NOW should not have too much problems paying its short term obligations.
1NOW has a Quick ratio of 1.12. This is comparable to the rest of the industry: 1NOW outperforms 44.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.29% over the past year.
The Earnings Per Share has been growing by 33.14% on average over the past years. This is a very strong growth
The Revenue has grown by 21.01% in the past year. This is a very strong growth!
Measured over the past years, 1NOW shows a very strong growth in Revenue. The Revenue has been growing by 25.99% on average per year.
EPS 1Y (TTM)23.29%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%18.48%
Revenue 1Y (TTM)21.01%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%18.63%
3.2 Future
1NOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.77% yearly.
1NOW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.47% yearly.
EPS Next Y20.16%
EPS Next 2Y20.07%
EPS Next 3Y20.36%
EPS Next 5Y18.77%
Revenue Next Year18.63%
Revenue Next 2Y19.02%
Revenue Next 3Y18.92%
Revenue Next 5Y19.47%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 62.65, which means the current valuation is very expensive for 1NOW.
The rest of the industry has a similar Price/Earnings ratio as 1NOW.
When comparing the Price/Earnings ratio of 1NOW to the average of the S&P500 Index (26.93), we can say 1NOW is valued expensively.
Based on the Price/Forward Earnings ratio of 45.44, the valuation of 1NOW can be described as expensive.
1NOW's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.31, 1NOW is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.65 | ||
| Fwd PE | 45.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1NOW is valued a bit more expensive than 65.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1NOW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.06 | ||
| EV/EBITDA | 86.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1NOW may justify a higher PE ratio.
1NOW's earnings are expected to grow with 20.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.11
PEG (5Y)1.89
EPS Next 2Y20.07%
EPS Next 3Y20.36%
5. Dividend
5.1 Amount
No dividends for 1NOW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NOW (8/6/2025, 7:00:00 PM)
780.6
-145.2 (-15.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners92.16%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap161.58B
Analysts82.35
Price Target943.58 (20.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.66%
Min EPS beat(2)-0.99%
Max EPS beat(2)4.31%
EPS beat(4)3
Avg EPS beat(4)4.75%
Min EPS beat(4)-0.99%
Max EPS beat(4)9.1%
EPS beat(8)7
Avg EPS beat(8)8.01%
EPS beat(12)11
Avg EPS beat(12)8.33%
EPS beat(16)15
Avg EPS beat(16)7.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.1%
Max Revenue beat(2)-0.87%
Revenue beat(4)1
Avg Revenue beat(4)-0.31%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)0.97%
Revenue beat(8)3
Avg Revenue beat(8)-0.13%
Revenue beat(12)3
Avg Revenue beat(12)-0.45%
Revenue beat(16)6
Avg Revenue beat(16)-0.05%
PT rev (1m)-9.23%
PT rev (3m)-11.85%
EPS NQ rev (1m)-1.44%
EPS NQ rev (3m)-2.72%
EPS NY rev (1m)1.21%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.65 | ||
| Fwd PE | 45.44 | ||
| P/S | 16.47 | ||
| P/FCF | 52.06 | ||
| P/OCF | 41.04 | ||
| P/B | 18.63 | ||
| P/tB | 21.95 | ||
| EV/EBITDA | 86.93 |
EPS(TTM)12.46
EY1.6%
EPS(NY)17.18
Fwd EY2.2%
FCF(TTM)14.99
FCFY1.92%
OCF(TTM)19.02
OCFY2.44%
SpS47.4
BVpS41.9
TBVpS35.56
PEG (NY)3.11
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 15.17% | ||
| ROCE | 11.66% | ||
| ROIC | 9.56% | ||
| ROICexc | 19.88% | ||
| ROICexgc | 26.54% | ||
| OM | 12.93% | ||
| PM (TTM) | 13.41% | ||
| GM | 78.92% | ||
| FCFM | 31.63% |
ROA(3y)6.46%
ROA(5y)4.58%
ROE(3y)14.66%
ROE(5y)10.88%
ROIC(3y)6.51%
ROIC(5y)5.28%
ROICexc(3y)13.22%
ROICexc(5y)11.32%
ROICexgc(3y)18.4%
ROICexgc(5y)16.07%
ROCE(3y)7.94%
ROCE(5y)6.44%
ROICexcg growth 3Y18.02%
ROICexcg growth 5Y53.98%
ROICexc growth 3Y29.2%
ROICexc growth 5Y52.18%
OM growth 3Y41.76%
OM growth 5Y59.12%
PM growth 3Y49.27%
PM growth 5Y-6.45%
GM growth 3Y0.91%
GM growth 5Y0.57%
F-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 164.14% | ||
| Cap/Sales | 8.5% | ||
| Interest Coverage | 64.48 | ||
| Cash Conversion | 221.62% | ||
| Profit Quality | 235.89% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 11.56 |
F-Score8
WACC11.45%
ROIC/WACC0.84
Cap/Depr(3y)136.22%
Cap/Depr(5y)124.36%
Cap/Sales(3y)7.82%
Cap/Sales(5y)7.96%
Profit Quality(3y)353.89%
Profit Quality(5y)596.69%
High Growth Momentum
Growth
EPS 1Y (TTM)23.29%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%18.48%
EPS Next Y20.16%
EPS Next 2Y20.07%
EPS Next 3Y20.36%
EPS Next 5Y18.77%
Revenue 1Y (TTM)21.01%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%18.63%
Revenue Next Year18.63%
Revenue Next 2Y19.02%
Revenue Next 3Y18.92%
Revenue Next 5Y19.47%
EBIT growth 1Y56.11%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year44.62%
EBIT Next 3Y30%
EBIT Next 5Y26.41%
FCF growth 1Y69.53%
FCF growth 3Y23.49%
FCF growth 5Y30.31%
OCF growth 1Y66.65%
OCF growth 3Y24.88%
OCF growth 5Y28.12%