SERVICENOW INC (1NOW.MI) Stock Fundamental Analysis
BIT:1NOW - Euronext Milan - US81762P1021 - Common Stock - Currency: EUR
Overall 1NOW gets a fundamental rating of 6 out of 10. We evaluated 1NOW against 97 industry peers in the Software industry. While 1NOW has a great profitability rating, there are some minor concerns on its financial health. 1NOW shows excellent growth, but is valued quite expensive already. This makes 1NOW very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year 1NOW was profitable.
1NOW had a positive operating cash flow in the past year.
In the past 5 years 1NOW has always been profitable.
1NOW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.99%, 1NOW is in the better half of the industry, outperforming 69.07% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.83%, 1NOW is in the better half of the industry, outperforming 74.23% of the companies in the same industry.
The Return On Invested Capital of 1NOW (9.30%) is better than 74.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1NOW is below the industry average of 10.77%.
The last Return On Invested Capital (9.30%) for 1NOW is above the 3 year average (6.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 14.83% | ||
| ROIC | 9.3% |
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 has a Profit Margin of 12.97%. This is in the better half of the industry: 1NOW outperforms 64.95% of its industry peers.
In the last couple of years the Profit Margin of 1NOW has declined.
The Operating Margin of 1NOW (12.42%) is better than 68.04% of its industry peers.
In the last couple of years the Operating Margin of 1NOW has grown nicely.
1NOW has a Gross Margin of 79.18%. This is in the better half of the industry: 1NOW outperforms 70.10% of its industry peers.
1NOW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.42% | ||
| PM (TTM) | 12.97% | ||
| GM | 79.18% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1NOW is destroying value.
The number of shares outstanding for 1NOW has been increased compared to 1 year ago.
Compared to 5 years ago, 1NOW has more shares outstanding
Compared to 1 year ago, 1NOW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 12.38 indicates that 1NOW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.38, 1NOW belongs to the top of the industry, outperforming 94.85% of the companies in the same industry.
The Debt to FCF ratio of 1NOW is 0.44, which is an excellent value as it means it would take 1NOW, only 0.44 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.44, 1NOW belongs to the best of the industry, outperforming 86.60% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that 1NOW is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.15, 1NOW is doing good in the industry, outperforming 69.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 12.38 |
ROIC/WACC0.87
WACC10.72%
2.3 Liquidity
A Current Ratio of 1.10 indicates that 1NOW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.10, 1NOW is not doing good in the industry: 60.82% of the companies in the same industry are doing better.
1NOW has a Quick Ratio of 1.10. This is a normal value and indicates that 1NOW is financially healthy and should not expect problems in meeting its short term obligations.
1NOW has a Quick ratio (1.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
1NOW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.34%, which is quite impressive.
Measured over the past years, 1NOW shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.14% on average per year.
The Revenue has grown by 22.44% 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)29.34%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%18.01%
Revenue 1Y (TTM)22.44%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.34%
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.
The Revenue is expected to grow by 19.47% on average over the next years. This is quite good.
EPS Next Y18.72%
EPS Next 2Y19.86%
EPS Next 3Y20.68%
EPS Next 5Y18.77%
Revenue Next Year18.64%
Revenue Next 2Y19.14%
Revenue Next 3Y19.34%
Revenue Next 5Y19.47%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 70.57, the valuation of 1NOW can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as 1NOW.
1NOW is valuated expensively when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 59.44, 1NOW can be considered very expensive at the moment.
1NOW's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.42. 1NOW is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.57 | ||
| Fwd PE | 59.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1NOW is valued a bit more expensive than the industry average as 61.86% of the companies are valued more cheaply.
1NOW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.29 | ||
| EV/EBITDA | 101.53 |
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.
A more expensive valuation may be justified as 1NOW's earnings are expected to grow with 20.68% in the coming years.
PEG (NY)3.77
PEG (5Y)2.13
EPS Next 2Y19.86%
EPS Next 3Y20.68%
5. Dividend
5.1 Amount
1NOW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NOW (5/5/2025, 7:00:00 PM)
868
+46.4 (+5.65%)
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 Cap179.68B
Analysts82
Price Target1039.53 (19.76%)
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)2.79%
Min EPS beat(2)-0.99%
Max EPS beat(2)6.57%
EPS beat(4)3
Avg EPS beat(4)5.56%
Min EPS beat(4)-0.99%
Max EPS beat(4)9.1%
EPS beat(8)7
Avg EPS beat(8)9.33%
EPS beat(12)11
Avg EPS beat(12)8.03%
EPS beat(16)15
Avg EPS beat(16)8.47%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-1.1%
Max Revenue beat(2)0.97%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)0.97%
Revenue beat(8)3
Avg Revenue beat(8)-0.07%
Revenue beat(12)4
Avg Revenue beat(12)-0.34%
Revenue beat(16)7
Avg Revenue beat(16)0.06%
PT rev (1m)-7.96%
PT rev (3m)8.62%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-2.1%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-1.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.57 | ||
| Fwd PE | 59.44 | ||
| P/S | 18.53 | ||
| P/FCF | 60.29 | ||
| P/OCF | 47.69 | ||
| P/B | 21.18 | ||
| P/tB | 25.04 | ||
| EV/EBITDA | 101.53 |
EPS(TTM)12.3
EY1.42%
EPS(NY)14.6
Fwd EY1.68%
FCF(TTM)14.4
FCFY1.66%
OCF(TTM)18.2
OCFY2.1%
SpS46.85
BVpS40.99
TBVpS34.67
PEG (NY)3.77
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 14.83% | ||
| ROCE | 11.34% | ||
| ROIC | 9.3% | ||
| ROICexc | 17.86% | ||
| ROICexgc | 23.39% | ||
| OM | 12.42% | ||
| PM (TTM) | 12.97% | ||
| GM | 79.18% | ||
| FCFM | 30.73% |
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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 158.16% | ||
| Cap/Sales | 8.12% | ||
| Interest Coverage | 59.3 | ||
| Cash Conversion | 221.32% | ||
| Profit Quality | 236.84% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 12.38 |
F-Score8
WACC10.72%
ROIC/WACC0.87
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)29.34%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%18.01%
EPS Next Y18.72%
EPS Next 2Y19.86%
EPS Next 3Y20.68%
EPS Next 5Y18.77%
Revenue 1Y (TTM)22.44%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.34%
Revenue Next Year18.64%
Revenue Next 2Y19.14%
Revenue Next 3Y19.34%
Revenue Next 5Y19.47%
EBIT growth 1Y79%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year46.45%
EBIT Next 3Y30.44%
EBIT Next 5Y26.41%
FCF growth 1Y24.82%
FCF growth 3Y23.49%
FCF growth 5Y30.31%
OCF growth 1Y25.57%
OCF growth 3Y24.88%
OCF growth 5Y28.12%