SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
FRA:4S0 - Deutsche Boerse Ag - US81762P1021 - Common Stock - Currency: EUR
4S0 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 95 industry peers in the Software industry. 4S0 scores excellent on profitability, but there are some minor concerns on its financial health. 4S0 is valued quite expensive, but it does show an excellent growth. With these ratings, 4S0 could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year 4S0 was profitable.
4S0 had a positive operating cash flow in the past year.
In the past 5 years 4S0 has always been profitable.
4S0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
4S0 has a better Return On Assets (7.33%) than 72.63% of its industry peers.
4S0 has a Return On Equity of 15.17%. This is in the better half of the industry: 4S0 outperforms 74.74% of its industry peers.
4S0's Return On Invested Capital of 9.56% is fine compared to the rest of the industry. 4S0 outperforms 76.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 4S0 is below the industry average of 11.01%.
The 3 year average ROIC (6.51%) for 4S0 is below the current ROIC(9.56%), indicating increased profibility in the last year.
| 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
The Profit Margin of 4S0 (13.41%) is better than 67.37% of its industry peers.
4S0's Profit Margin has declined in the last couple of years.
4S0's Operating Margin of 12.93% is fine compared to the rest of the industry. 4S0 outperforms 70.53% of its industry peers.
In the last couple of years the Operating Margin of 4S0 has grown nicely.
4S0's Gross Margin of 78.92% is fine compared to the rest of the industry. 4S0 outperforms 70.53% of its industry peers.
4S0's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 4S0 is destroying value.
4S0 has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 4S0 has more shares outstanding
Compared to 1 year ago, 4S0 has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.96 indicates that 4S0 is not in any danger for bankruptcy at the moment.
The Altman-Z score of 4S0 (11.96) is better than 94.74% of its industry peers.
4S0 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.
4S0's Debt to FCF ratio of 0.41 is amongst the best of the industry. 4S0 outperforms 86.32% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that 4S0 is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.15, 4S0 is in the better half of the industry, outperforming 67.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 11.96 |
ROIC/WACC0.92
WACC10.41%
2.3 Liquidity
4S0 has a Current Ratio of 1.12. This is a normal value and indicates that 4S0 is financially healthy and should not expect problems in meeting its short term obligations.
4S0's Current ratio of 1.12 is in line compared to the rest of the industry. 4S0 outperforms 41.05% of its industry peers.
A Quick Ratio of 1.12 indicates that 4S0 should not have too much problems paying its short term obligations.
4S0 has a Quick ratio (1.12) which is comparable to the rest of the industry.
| 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, 4S0 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
4S0 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 2Y18.98%
Revenue Next 3Y19.22%
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.
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
The Price/Earnings ratio is 66.88, which means the current valuation is very expensive for 4S0.
The rest of the industry has a similar Price/Earnings ratio as 4S0.
When comparing the Price/Earnings ratio of 4S0 to the average of the S&P500 Index (27.75), we can say 4S0 is valued expensively.
A Price/Forward Earnings ratio of 48.65 indicates a quite expensive valuation of 4S0.
The rest of the industry has a similar Price/Forward Earnings ratio as 4S0.
4S0's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.88 | ||
| Fwd PE | 48.65 |
4.2 Price Multiples
61.05% of the companies in the same industry are cheaper than 4S0, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as 4S0.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.55 | ||
| EV/EBITDA | 90.4 |
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 20.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.57
PEG (5Y)2.02
EPS Next 2Y19.86%
EPS Next 3Y20.68%
5. Dividend
5.1 Amount
No dividends for 4S0!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:4S0 (5/2/2025, 5:03:51 PM)
856.1
+23.1 (+2.77%)
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 Cap177.21B
Analysts82
Price Target910.54 (6.36%)
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)1.65%
Min EPS beat(2)-0.99%
Max EPS beat(2)4.29%
EPS beat(4)3
Avg EPS beat(4)4.74%
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)-19.65%
PT rev (3m)-13.68%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-1.9%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.88 | ||
| Fwd PE | 48.65 | ||
| P/S | 17.57 | ||
| P/FCF | 55.55 | ||
| P/OCF | 43.79 | ||
| P/B | 19.88 | ||
| P/tB | 23.42 | ||
| EV/EBITDA | 90.4 |
EPS(TTM)12.8
EY1.5%
EPS(NY)17.6
Fwd EY2.06%
FCF(TTM)15.41
FCFY1.8%
OCF(TTM)19.55
OCFY2.28%
SpS48.72
BVpS43.07
TBVpS36.55
PEG (NY)3.57
PEG (5Y)2.02
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 | 11.96 |
F-Score8
WACC10.41%
ROIC/WACC0.92
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 Y18.72%
EPS Next 2Y19.86%
EPS Next 3Y20.68%
EPS Next 5Y18.77%
Revenue 1Y (TTM)21.01%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%18.63%
Revenue Next Year18.64%
Revenue Next 2Y18.98%
Revenue Next 3Y19.22%
Revenue Next 5Y19.47%
EBIT growth 1Y56.11%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year46.45%
EBIT Next 3Y30.44%
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%