SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
FRA:4S0 - Deutsche Boerse Ag - US81762P1021 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 4S0. 4S0 was compared to 100 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. These ratings would make 4S0 suitable 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.
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
The Return On Assets of 4S0 (7.33%) is better than 73.00% of its industry peers.
With a decent Return On Equity value of 15.17%, 4S0 is doing good in the industry, outperforming 76.00% of the companies in the same industry.
4S0 has a Return On Invested Capital of 9.56%. This is in the better half of the industry: 4S0 outperforms 77.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 4S0 is below the industry average of 10.48%.
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
Looking at the Profit Margin, with a value of 13.41%, 4S0 is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 4S0 has declined.
4S0 has a Operating Margin of 12.93%. This is in the better half of the industry: 4S0 outperforms 70.00% of its industry peers.
4S0's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 78.92%, 4S0 is doing good in the industry, outperforming 70.00% 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 | 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.
Compared to 1 year ago, 4S0 has more shares outstanding
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
4S0 has an Altman-Z score of 12.84. This indicates that 4S0 is financially healthy and has little risk of bankruptcy at the moment.
4S0 has a better Altman-Z score (12.84) than 94.00% 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.
Looking at the Debt to FCF ratio, with a value of 0.41, 4S0 belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that 4S0 is not too dependend on debt financing.
4S0 has a better Debt to Equity ratio (0.15) than 71.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 12.84 |
ROIC/WACC0.87
WACC11.01%
2.3 Liquidity
A Current Ratio of 1.12 indicates that 4S0 should not have too much problems paying its short term obligations.
4S0 has a Current ratio (1.12) which is comparable to the rest of the industry.
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 in line with its industry peers.
| 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.
4S0 shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.01%.
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.
4S0 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.47% yearly.
EPS Next Y20.16%
EPS Next 2Y20.07%
EPS Next 3Y20.36%
EPS Next 5Y18.77%
Revenue Next Year18.63%
Revenue Next 2Y19.02%
Revenue Next 3Y18.92%
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
With a Price/Earnings ratio of 69.05, 4S0 can be considered very expensive at the moment.
4S0's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.91, 4S0 is valued quite expensively.
Based on the Price/Forward Earnings ratio of 50.04, the valuation of 4S0 can be described as expensive.
4S0's Price/Forward Earnings is on the same level as the industry average.
4S0 is valuated expensively when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.05 | ||
| Fwd PE | 50.04 |
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 61.00% of the companies listed in the same industry.
4S0's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.34 | ||
| EV/EBITDA | 98.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)3.43
PEG (5Y)2.08
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 (5/23/2025, 4:54:33 PM)
888.7
-16.9 (-1.87%)
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 Cap183.96B
Analysts82.35
Price Target956.59 (7.64%)
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)-8.99%
PT rev (3m)-14.33%
EPS NQ rev (1m)-1.44%
EPS NQ rev (3m)-2.72%
EPS NY rev (1m)1.21%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.05 | ||
| Fwd PE | 50.04 | ||
| P/S | 18.14 | ||
| P/FCF | 57.34 | ||
| P/OCF | 45.2 | ||
| P/B | 20.52 | ||
| P/tB | 24.18 | ||
| EV/EBITDA | 98.06 |
EPS(TTM)12.87
EY1.45%
EPS(NY)17.76
Fwd EY2%
FCF(TTM)15.5
FCFY1.74%
OCF(TTM)19.66
OCFY2.21%
SpS48.99
BVpS43.31
TBVpS36.75
PEG (NY)3.43
PEG (5Y)2.08
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 | 12.84 |
F-Score8
WACC11.01%
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)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 5Y18.77%
Revenue 1Y (TTM)21.01%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%18.63%
Revenue Next Year18.63%
Revenue Next 2Y19.02%
Revenue Next 3Y18.92%
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%