SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
FRA:4S0 - Deutsche Boerse Ag - US81762P1021 - Common Stock - Currency: EUR
Overall 4S0 gets a fundamental rating of 6 out of 10. We evaluated 4S0 against 103 industry peers in the Software industry. While 4S0 has a great profitability rating, there are some minor concerns on its financial health. 4S0 is valued quite expensively, but it does show have an excellent growth rating. This makes 4S0 very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year 4S0 was profitable.
In the past year 4S0 had a positive cash flow from operations.
Each year in the past 5 years 4S0 has been profitable.
4S0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.33%, 4S0 is doing good in the industry, outperforming 73.53% of the companies in the same industry.
4S0 has a better Return On Equity (15.17%) than 76.47% of its industry peers.
With a decent Return On Invested Capital value of 9.56%, 4S0 is doing good in the industry, outperforming 78.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 4S0 is below the industry average of 10.32%.
The last Return On Invested Capital (9.56%) for 4S0 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
4S0 has a better Profit Margin (13.41%) than 70.59% of its industry peers.
4S0's Profit Margin has declined in the last couple of years.
4S0 has a Operating Margin of 12.93%. This is in the better half of the industry: 4S0 outperforms 71.57% of its industry peers.
In the last couple of years the Operating Margin of 4S0 has grown nicely.
The Gross Margin of 4S0 (78.92%) is better than 69.61% of its industry peers.
In the last couple of years the Gross Margin of 4S0 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 4S0 is creating some value.
4S0 has more shares outstanding than it did 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
An Altman-Z score of 12.26 indicates that 4S0 is not in any danger for bankruptcy at the moment.
4S0 has a Altman-Z score of 12.26. This is amongst the best in the industry. 4S0 outperforms 93.14% of its industry peers.
The Debt to FCF ratio of 4S0 is 0.41, which is an excellent value as it means it would take 4S0, only 0.41 years of fcf income to pay off all of its debts.
4S0's Debt to FCF ratio of 0.41 is amongst the best of the industry. 4S0 outperforms 89.22% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that 4S0 is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.15, 4S0 is doing good in the industry, outperforming 69.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 12.26 |
ROIC/WACC1.07
WACC8.96%
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.
With a Current ratio value of 1.12, 4S0 is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
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.
Measured over the past years, 4S0 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 21.01% 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)23.29%
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 19.14% yearly.
Based on estimates for the next years, 4S0 will show a quite strong growth in Revenue. The Revenue will grow by 18.04% on average per year.
EPS Next Y20.16%
EPS Next 2Y20.07%
EPS Next 3Y20.36%
EPS Next 5Y19.14%
Revenue Next Year18.63%
Revenue Next 2Y18.98%
Revenue Next 3Y18.85%
Revenue Next 5Y18.04%
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
With a Price/Earnings ratio of 67.05, 4S0 can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as 4S0.
4S0's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.35.
A Price/Forward Earnings ratio of 48.63 indicates a quite expensive valuation of 4S0.
4S0's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.19. 4S0 is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.05 | ||
| Fwd PE | 48.63 |
4.2 Price Multiples
4S0's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 4S0 is more expensive than 63.73% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 4S0.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.72 | ||
| EV/EBITDA | 93.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 4S0 does not grow enough to justify the current Price/Earnings ratio.
4S0 has a very decent profitability rating, which may justify a higher PE ratio.
4S0's earnings are expected to grow with 20.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.33
PEG (5Y)2.02
EPS Next 2Y20.07%
EPS Next 3Y20.36%
5. Dividend
5.1 Amount
No dividends for 4S0!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:4S0 (6/20/2025, 4:02:25 PM)
850.9
+2.6 (+0.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.37%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap176.12B
Analysts83.2
Price Target965.92 (13.52%)
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)1.61%
PT rev (3m)-14.22%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-2.12%
EPS NY rev (1m)0%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.05 | ||
| Fwd PE | 48.63 | ||
| P/S | 17.63 | ||
| P/FCF | 55.72 | ||
| P/OCF | 43.92 | ||
| P/B | 19.94 | ||
| P/tB | 23.49 | ||
| EV/EBITDA | 93.02 |
EPS(TTM)12.69
EY1.49%
EPS(NY)17.5
Fwd EY2.06%
FCF(TTM)15.27
FCFY1.79%
OCF(TTM)19.38
OCFY2.28%
SpS48.28
BVpS42.68
TBVpS36.22
PEG (NY)3.33
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 | 12.26 |
F-Score8
WACC8.96%
ROIC/WACC1.07
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 5Y19.14%
Revenue 1Y (TTM)21.01%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%18.63%
Revenue Next Year18.63%
Revenue Next 2Y18.98%
Revenue Next 3Y18.85%
Revenue Next 5Y18.04%
EBIT growth 1Y56.11%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year44.62%
EBIT Next 3Y30%
EBIT Next 5Y24.59%
FCF growth 1Y69.53%
FCF growth 3Y23.49%
FCF growth 5Y30.31%
OCF growth 1Y66.65%
OCF growth 3Y24.88%
OCF growth 5Y28.12%