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SERVICENOW INC (4S0.DE) Stock Fundamental Analysis

FRA:4S0 - US81762P1021 - Common Stock

778.5 EUR
+7.3 (+0.95%)
Last: 9/5/2025, 7:00:00 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to 4S0. 4S0 was compared to 101 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. These ratings could make 4S0 a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

4S0 had positive earnings in the past year.
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.
4S0.DE Yearly Net Income VS EBIT VS OCF VS FCF4S0.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

1.2 Ratios

4S0 has a Return On Assets of 7.53%. This is in the better half of the industry: 4S0 outperforms 74.07% of its industry peers.
The Return On Equity of 4S0 (15.19%) is better than 71.30% of its industry peers.
The Return On Invested Capital of 4S0 (9.68%) is better than 75.00% of its industry peers.
4S0 had an Average Return On Invested Capital over the past 3 years of 6.51%. This is significantly below the industry average of 12.69%.
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 RankSector 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%
4S0.DE Yearly ROA, ROE, ROIC4S0.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60 -80 -100

1.3 Margins

With a decent Profit Margin value of 13.78%, 4S0 is doing good in the industry, outperforming 64.81% of the companies in the same industry.
In the last couple of years the Profit Margin of 4S0 has declined.
Looking at the Operating Margin, with a value of 13.28%, 4S0 is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
4S0's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 78.52%, 4S0 is doing good in the industry, outperforming 62.96% of the companies in the same industry.
In the last couple of years the Gross Margin of 4S0 has remained more or less at the same level.
Industry RankSector 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%
4S0.DE Yearly Profit, Operating, Gross Margins4S0.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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5

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
The number of shares outstanding for 4S0 has been increased compared to 5 years ago.
4S0 has a better debt/assets ratio than last year.
4S0.DE Yearly Shares Outstanding4S0.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
4S0.DE Yearly Total Debt VS Total Assets4S0.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

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.
4S0's Debt to FCF ratio of 0.39 is amongst the best of the industry. 4S0 outperforms 88.89% 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.
4S0 has a better Debt to Equity ratio (0.14) than 74.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 0.39
Altman-Z N/A
ROIC/WACC0.87
WACC11.16%
4S0.DE Yearly LT Debt VS Equity VS FCF4S0.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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.
4S0 has a Current ratio (1.09) which is in line with its industry peers.
A Quick Ratio of 1.09 indicates that 4S0 should not have too much problems paying its short term obligations.
4S0 has a Quick ratio of 1.09. This is comparable to the rest of the industry: 4S0 outperforms 42.59% of its industry peers.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09
4S0.DE Yearly Current Assets VS Current Liabilites4S0.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 23.47% 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 21.12%.
4S0 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.99% yearly.
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

The Earnings Per Share is expected to grow by 18.95% on average over the next years. This is quite good.
Based on estimates for the next years, 4S0 will show a quite strong growth in Revenue. The Revenue will grow by 18.32% on average per year.
EPS Next Y22.57%
EPS Next 2Y20.54%
EPS Next 3Y20.65%
EPS Next 5Y18.95%
Revenue Next Year19.88%
Revenue Next 2Y19.23%
Revenue Next 3Y19.09%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4S0.DE Yearly Revenue VS Estimates4S0.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B
4S0.DE Yearly EPS VS Estimates4S0.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 10 20 30 40 50

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 58.67, the valuation of 4S0 can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as 4S0.
Compared to an average S&P500 Price/Earnings ratio of 27.06, 4S0 is valued quite expensively.
4S0 is valuated quite expensively with a Price/Forward Earnings ratio of 44.99.
The rest of the industry has a similar Price/Forward Earnings ratio as 4S0.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, 4S0 is valued quite expensively.
Industry RankSector Rank
PE 58.67
Fwd PE 44.99
4S0.DE Price Earnings VS Forward Price Earnings4S0.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 62.04% of the companies listed in the same industry.
4S0's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 49.78
EV/EBITDA 81.47
4S0.DE Per share data4S0.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
A more expensive valuation may be justified as 4S0's earnings are expected to grow with 20.65% in the coming years.
PEG (NY)2.6
PEG (5Y)1.77
EPS Next 2Y20.54%
EPS Next 3Y20.65%

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0

5. Dividend

5.1 Amount

4S0 does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SERVICENOW INC

FRA:4S0 (9/5/2025, 7:00:00 PM)

778.5

+7.3 (+0.95%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)07-23 2025-07-23/amc
Earnings (Next)10-21 2025-10-21/amc
Inst Owners91.17%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap161.93B
Analysts83.14
Price Target1010.91 (29.85%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)4.13%
PT rev (3m)4%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-1.05%
EPS NY rev (1m)2.09%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.05%
Valuation
Industry RankSector Rank
PE 58.67
Fwd PE 44.99
P/S 15.71
P/FCF 49.78
P/OCF 40.31
P/B 17.33
P/tB 21.44
EV/EBITDA 81.47
EPS(TTM)13.27
EY1.7%
EPS(NY)17.3
Fwd EY2.22%
FCF(TTM)15.64
FCFY2.01%
OCF(TTM)19.31
OCFY2.48%
SpS49.56
BVpS44.93
TBVpS36.31
PEG (NY)2.6
PEG (5Y)1.77
Profitability
Industry RankSector 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 RankSector 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
WACC11.16%
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)23.47%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%30.67%
EPS Next Y22.57%
EPS Next 2Y20.54%
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 2Y19.23%
Revenue Next 3Y19.09%
Revenue Next 5Y18.32%
EBIT growth 1Y49.21%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year46.77%
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%