SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - FRA:4S0 - US81762P1021 - Common Stock
810.2 EUR
+3.6 (+0.45%)
4S0 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 industry peers in the Software industry. While 4S0 has a great profitability rating, there are some minor concerns on its financial health. 4S0 shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year 4S0 was profitable.
4S0 had a positive operating cash flow in the past year.
Each year in the past 5 years 4S0 has been profitable.
In the past 5 years 4S0 always reported a positive cash flow from operatings.
1.2 Ratios
4S0 has a Return On Assets of 7.53%. This is in the better half of the industry: 4S0 outperforms 70.91% of its industry peers.
4S0 has a better Return On Equity (15.19%) than 70.91% of its industry peers.
4S0's Return On Invested Capital of 9.68% is fine compared to the rest of the industry. 4S0 outperforms 76.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 4S0 is significantly below the industry average of 12.42%.
The last Return On Invested Capital (9.68%) for 4S0 is above the 3 year average (6.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 15.19% | ||
| ROIC | 9.68% |
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
With a decent Profit Margin value of 13.78%, 4S0 is doing good in the industry, outperforming 65.45% of the companies in the same industry.
In the last couple of years the Profit Margin of 4S0 has declined.
4S0's Operating Margin of 13.28% is fine compared to the rest of the industry. 4S0 outperforms 67.27% of its industry peers.
In the last couple of years the Operating Margin of 4S0 has grown nicely.
With a decent Gross Margin value of 78.52%, 4S0 is doing good in the industry, outperforming 66.36% of the companies in the same industry.
4S0's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.28% | ||
| PM (TTM) | 13.78% | ||
| GM | 78.52% |
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
4S0 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 4S0 has been increased compared to 1 year ago.
4S0 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 4S0 has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of 4S0 is 0.39, which is an excellent value as it means it would take 4S0, only 0.39 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 4S0 (0.39) is better than 88.18% of its industry peers.
4S0 has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.14, 4S0 is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | N/A |
ROIC/WACC0.88
WACC10.99%
2.3 Liquidity
4S0 has a Current Ratio of 1.09. This is a normal value and indicates that 4S0 is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.09, 4S0 is doing worse than 61.82% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that 4S0 should not have too much problems paying its short term obligations.
The Quick ratio of 4S0 (1.09) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
4S0 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.47%, which is quite impressive.
4S0 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.14% yearly.
The Revenue has grown by 21.12% in the past year. This is a very strong growth!
The Revenue has been growing by 25.99% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)23.47%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%30.67%
Revenue 1Y (TTM)21.12%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%22.38%
3.2 Future
Based on estimates for the next years, 4S0 will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.95% on average per year.
4S0 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.32% yearly.
EPS Next Y22.58%
EPS Next 2Y20.57%
EPS Next 3Y20.65%
EPS Next 5Y18.95%
Revenue Next Year19.88%
Revenue Next 2Y19.25%
Revenue Next 3Y19.18%
Revenue Next 5Y18.32%
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.
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
A Price/Earnings ratio of 60.60 indicates a quite expensive valuation of 4S0.
4S0's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.77. 4S0 is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 46.44, which means the current valuation is very expensive for 4S0.
4S0's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, 4S0 is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.6 | ||
| Fwd PE | 46.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4S0 is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 4S0 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.41 | ||
| EV/EBITDA | 83.86 |
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 4S0 may justify a higher PE ratio.
4S0's earnings are expected to grow with 20.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.68
PEG (5Y)1.83
EPS Next 2Y20.57%
EPS Next 3Y20.65%
5. Dividend
5.1 Amount
4S0 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:4S0 (10/22/2025, 10:05:16 AM)
810.2
+3.6 (+0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.68%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap168.52B
Analysts83.53
Price Target995.4 (22.86%)
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)2
Avg EPS beat(2)8.88%
Min EPS beat(2)4.31%
Max EPS beat(2)13.44%
EPS beat(4)3
Avg EPS beat(4)5.83%
Min EPS beat(4)-0.99%
Max EPS beat(4)13.44%
EPS beat(8)7
Avg EPS beat(8)7.91%
EPS beat(12)11
Avg EPS beat(12)9.1%
EPS beat(16)15
Avg EPS beat(16)7.89%
Revenue beat(2)1
Avg Revenue beat(2)0.57%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)2%
Revenue beat(4)2
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)2%
Revenue beat(8)3
Avg Revenue beat(8)0.11%
Revenue beat(12)4
Avg Revenue beat(12)-0.18%
Revenue beat(16)6
Avg Revenue beat(16)-0.09%
PT rev (1m)-0.39%
PT rev (3m)2.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)0.01%
EPS NY rev (3m)2.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.6 | ||
| Fwd PE | 46.44 | ||
| P/S | 16.22 | ||
| P/FCF | 51.41 | ||
| P/OCF | 41.63 | ||
| P/B | 17.89 | ||
| P/tB | 22.14 | ||
| EV/EBITDA | 83.86 |
EPS(TTM)13.37
EY1.65%
EPS(NY)17.45
Fwd EY2.15%
FCF(TTM)15.76
FCFY1.95%
OCF(TTM)19.46
OCFY2.4%
SpS49.94
BVpS45.28
TBVpS36.6
PEG (NY)2.68
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 15.19% | ||
| ROCE | 11.81% | ||
| ROIC | 9.68% | ||
| ROICexc | 17.68% | ||
| ROICexgc | 24.64% | ||
| OM | 13.28% | ||
| PM (TTM) | 13.78% | ||
| GM | 78.52% | ||
| FCFM | 31.56% |
ROA(3y)6.46%
ROA(5y)4.58%
ROE(3y)14.66%
ROE(5y)10.88%
ROIC(3y)6.51%
ROIC(5y)5.28%
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-Score7
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.39 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 141.91% | ||
| Cap/Sales | 7.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 210.62% | ||
| Profit Quality | 229.08% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | N/A |
F-Score7
WACC10.99%
ROIC/WACC0.88
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)23.47%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%30.67%
EPS Next Y22.58%
EPS Next 2Y20.57%
EPS Next 3Y20.65%
EPS Next 5Y18.95%
Revenue 1Y (TTM)21.12%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%22.38%
Revenue Next Year19.88%
Revenue Next 2Y19.25%
Revenue Next 3Y19.18%
Revenue Next 5Y18.32%
EBIT growth 1Y49.21%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year48.73%
EBIT Next 3Y29.6%
EBIT Next 5Y24.29%
FCF growth 1Y65%
FCF growth 3Y23.49%
FCF growth 5Y30.31%
OCF growth 1Y61.53%
OCF growth 3Y24.88%
OCF growth 5Y28.12%