SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4S0 - US81762P1021 - Common Stock
686 EUR
-10 (-1.44%)
Overall 4S0 gets a fundamental rating of 5 out of 10. We evaluated 4S0 against 114 industry peers in the Software industry. While 4S0 belongs to the best of the industry regarding profitability, 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.
In the past year 4S0 had a positive cash flow from operations.
4S0 had positive earnings in each of the past 5 years.
In the past 5 years 4S0 always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.94%, 4S0 is doing good in the industry, outperforming 71.05% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.32%, 4S0 is in the better half of the industry, outperforming 69.30% of the companies in the same industry.
4S0 has a better Return On Invested Capital (10.34%) than 75.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 4S0 is significantly below the industry average of 13.10%.
The last Return On Invested Capital (10.34%) for 4S0 is above the 3 year average (6.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 15.32% | ||
| ROIC | 10.34% |
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 Profit Margin of 13.67%. This is in the better half of the industry: 4S0 outperforms 64.04% of its industry peers.
4S0's Profit Margin has declined in the last couple of years.
4S0's Operating Margin of 13.85% is fine compared to the rest of the industry. 4S0 outperforms 66.67% of its industry peers.
4S0's Operating Margin has improved in the last couple of years.
The Gross Margin of 4S0 (78.05%) is better than 67.54% 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 | 13.85% | ||
| PM (TTM) | 13.67% | ||
| GM | 78.05% |
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.
4S0 has more shares outstanding than it did 1 year ago.
4S0 has more shares outstanding than it did 5 years ago.
4S0 has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 4S0 is 0.38, which is an excellent value as it means it would take 4S0, only 0.38 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 4S0 (0.38) is better than 88.60% of its industry peers.
4S0 has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
4S0 has a Debt to Equity ratio of 0.13. This is in the better half of the industry: 4S0 outperforms 71.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.94
WACC10.94%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 4S0 should not have too much problems paying its short term obligations.
4S0's Current ratio of 1.06 is on the low side compared to the rest of the industry. 4S0 is outperformed by 63.16% of its industry peers.
4S0 has a Quick Ratio of 1.06. 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 Quick ratio value of 1.06, 4S0 is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
4S0 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.31%, 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 21.05% in the past year. This is a very strong growth!
4S0 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.99% yearly.
EPS 1Y (TTM)24.31%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%29.57%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.81%
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 18.48% yearly.
The Revenue is expected to grow by 18.38% on average over the next years. This is quite good.
EPS Next Y24.81%
EPS Next 2Y21.26%
EPS Next 3Y20.87%
EPS Next 5Y18.48%
Revenue Next Year20.41%
Revenue Next 2Y19.43%
Revenue Next 3Y19.2%
Revenue Next 5Y18.38%
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
4S0 is valuated quite expensively with a Price/Earnings ratio of 47.84.
4S0's Price/Earnings ratio is in line with the industry average.
4S0's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.15.
Based on the Price/Forward Earnings ratio of 38.80, the valuation of 4S0 can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 4S0 is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.12. 4S0 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.84 | ||
| Fwd PE | 38.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 4S0 indicates a slightly more expensive valuation: 4S0 is more expensive than 65.79% of the companies listed in the same industry.
4S0's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.33 | ||
| EV/EBITDA | 65.18 |
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.
The decent profitability rating of 4S0 may justify a higher PE ratio.
4S0's earnings are expected to grow with 20.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.93
PEG (5Y)1.44
EPS Next 2Y21.26%
EPS Next 3Y20.87%
5. Dividend
5.1 Amount
No dividends for 4S0!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:4S0 (11/27/2025, 7:00:00 PM)
686
-10 (-1.44%)
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 Cap142.69B
Revenue(TTM)12.67B
Net Income(TTM)1.73B
Analysts83.53
Price Target1033.9 (50.71%)
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)12.64%
Min EPS beat(2)11.85%
Max EPS beat(2)13.44%
EPS beat(4)3
Avg EPS beat(4)7.15%
Min EPS beat(4)-0.99%
Max EPS beat(4)13.44%
EPS beat(8)7
Avg EPS beat(8)7.8%
EPS beat(12)11
Avg EPS beat(12)9.66%
EPS beat(16)15
Avg EPS beat(16)7.95%
Revenue beat(2)2
Avg Revenue beat(2)1.31%
Min Revenue beat(2)0.62%
Max Revenue beat(2)2%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)2%
Revenue beat(8)4
Avg Revenue beat(8)0.21%
Revenue beat(12)5
Avg Revenue beat(12)0.04%
Revenue beat(16)6
Avg Revenue beat(16)-0.15%
PT rev (1m)3.87%
PT rev (3m)2.27%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)1.85%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.84 | ||
| Fwd PE | 38.8 | ||
| P/S | 13.05 | ||
| P/FCF | 42.33 | ||
| P/OCF | 34.15 | ||
| P/B | 14.63 | ||
| P/tB | 18.19 | ||
| EV/EBITDA | 65.18 |
EPS(TTM)14.34
EY2.09%
EPS(NY)17.68
Fwd EY2.58%
FCF(TTM)16.2
FCFY2.36%
OCF(TTM)20.09
OCFY2.93%
SpS52.56
BVpS46.89
TBVpS37.72
PEG (NY)1.93
PEG (5Y)1.44
Graham Number123.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 15.32% | ||
| ROCE | 12.61% | ||
| ROIC | 10.34% | ||
| ROICexc | 16.91% | ||
| ROICexgc | 22.84% | ||
| OM | 13.85% | ||
| PM (TTM) | 13.67% | ||
| GM | 78.05% | ||
| FCFM | 30.83% |
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%
ROICexgc growth 3Y18.02%
ROICexgc 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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 137.65% | ||
| Cap/Sales | 7.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 198.81% | ||
| Profit Quality | 225.59% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | N/A |
F-Score7
WACC10.94%
ROIC/WACC0.94
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)24.31%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%29.57%
EPS Next Y24.81%
EPS Next 2Y21.26%
EPS Next 3Y20.87%
EPS Next 5Y18.48%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.81%
Revenue Next Year20.41%
Revenue Next 2Y19.43%
Revenue Next 3Y19.2%
Revenue Next 5Y18.38%
EBIT growth 1Y39.29%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year48.73%
EBIT Next 3Y29.6%
EBIT Next 5Y23.66%
FCF growth 1Y64.21%
FCF growth 3Y23.49%
FCF growth 5Y30.31%
OCF growth 1Y63.82%
OCF growth 3Y24.88%
OCF growth 5Y28.12%
SERVICENOW INC / 4S0.DE FAQ
What is the ChartMill fundamental rating of SERVICENOW INC (4S0.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 4S0.DE.
What is the valuation status for 4S0 stock?
ChartMill assigns a valuation rating of 2 / 10 to SERVICENOW INC (4S0.DE). This can be considered as Overvalued.
Can you provide the profitability details for SERVICENOW INC?
SERVICENOW INC (4S0.DE) has a profitability rating of 7 / 10.
What is the financial health of SERVICENOW INC (4S0.DE) stock?
The financial health rating of SERVICENOW INC (4S0.DE) is 4 / 10.