SERVICENOW INC (NOW) Fundamental Analysis & Valuation

NYSE:NOW • US81762P1021

Current stock price

114.88 USD
+1.26 (+1.11%)
At close:
114.85 USD
-0.03 (-0.03%)
Pre-Market:

This NOW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. NOW Profitability Analysis

1.1 Basic Checks

  • In the past year NOW was profitable.
  • NOW had a positive operating cash flow in the past year.
  • In the past 5 years NOW has always been profitable.
  • NOW had a positive operating cash flow in each of the past 5 years.
NOW Yearly Net Income VS EBIT VS OCF VS FCFNOW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B 5B

1.2 Ratios

  • NOW's Return On Assets of 6.71% is fine compared to the rest of the industry. NOW outperforms 79.06% of its industry peers.
  • The Return On Equity of NOW (13.48%) is better than 79.06% of its industry peers.
  • NOW has a better Return On Invested Capital (9.33%) than 84.12% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NOW is below the industry average of 10.87%.
  • The 3 year average ROIC (8.15%) for NOW is below the current ROIC(9.33%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.71%
ROE 13.48%
ROIC 9.33%
ROA(3y)7.89%
ROA(5y)5.65%
ROE(3y)17%
ROE(5y)12.74%
ROIC(3y)8.15%
ROIC(5y)6.36%
NOW Yearly ROA, ROE, ROICNOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40 -60 -80 -100

1.3 Margins

  • NOW has a Profit Margin of 13.16%. This is in the better half of the industry: NOW outperforms 77.98% of its industry peers.
  • NOW's Profit Margin has improved in the last couple of years.
  • NOW's Operating Margin of 13.76% is amongst the best of the industry. NOW outperforms 80.51% of its industry peers.
  • In the last couple of years the Operating Margin of NOW has grown nicely.
  • NOW has a better Gross Margin (77.56%) than 74.01% of its industry peers.
  • In the last couple of years the Gross Margin of NOW has remained more or less at the same level.
Industry RankSector Rank
OM 13.76%
PM (TTM) 13.16%
GM 77.56%
OM growth 3Y41.21%
OM growth 5Y25.68%
PM growth 3Y43.17%
PM growth 5Y38.09%
GM growth 3Y-0.3%
GM growth 5Y-0.14%
NOW Yearly Profit, Operating, Gross MarginsNOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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4

2. NOW Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOW is destroying value.
  • The number of shares outstanding for NOW has been increased compared to 1 year ago.
  • The number of shares outstanding for NOW has been increased compared to 5 years ago.
  • NOW has a better debt/assets ratio than last year.
NOW Yearly Shares OutstandingNOW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
NOW Yearly Total Debt VS Total AssetsNOW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • The Debt to FCF ratio of NOW is 0.33, which is an excellent value as it means it would take NOW, only 0.33 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 0.33, NOW is doing good in the industry, outperforming 79.42% of the companies in the same industry.
  • A Debt/Equity ratio of 0.12 indicates that NOW is not too dependend on debt financing.
  • NOW's Debt to Equity ratio of 0.12 is in line compared to the rest of the industry. NOW outperforms 51.99% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.33
Altman-Z N/A
ROIC/WACC0.86
WACC10.8%
NOW Yearly LT Debt VS Equity VS FCFNOW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.00 indicates that NOW should not have too much problems paying its short term obligations.
  • The Current ratio of NOW (1.00) is worse than 75.09% of its industry peers.
  • A Quick Ratio of 1.00 indicates that NOW should not have too much problems paying its short term obligations.
  • NOW's Quick ratio of 1.00 is on the low side compared to the rest of the industry. NOW is outperformed by 74.37% of its industry peers.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 1
NOW Yearly Current Assets VS Current LiabilitesNOW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. NOW Growth Analysis

3.1 Past

  • NOW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.99%, which is quite impressive.
  • Measured over the past years, NOW shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.37% on average per year.
  • Looking at the last year, NOW shows a very strong growth in Revenue. The Revenue has grown by 20.88%.
  • Measured over the past years, NOW shows a very strong growth in Revenue. The Revenue has been growing by 24.05% on average per year.
EPS 1Y (TTM)25.99%
EPS 3Y32.23%
EPS 5Y30.37%
EPS Q2Q%25.34%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y22.38%
Revenue growth 5Y24.05%
Sales Q2Q%20.66%

3.2 Future

  • Based on estimates for the next years, NOW will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.08% on average per year.
  • NOW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.17% yearly.
EPS Next Y20.07%
EPS Next 2Y20.21%
EPS Next 3Y20.56%
EPS Next 5Y19.08%
Revenue Next Year20.73%
Revenue Next 2Y19.56%
Revenue Next 3Y19.36%
Revenue Next 5Y19.17%

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.
  • 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.
NOW Yearly Revenue VS EstimatesNOW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
NOW Yearly EPS VS EstimatesNOW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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Find the best growth stocksShow best growing peers

4

4. NOW Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 32.73 indicates a quite expensive valuation of NOW.
  • The rest of the industry has a similar Price/Earnings ratio as NOW.
  • When comparing the Price/Earnings ratio of NOW to the average of the S&P500 Index (25.96), we can say NOW is valued slightly more expensively.
  • NOW is valuated quite expensively with a Price/Forward Earnings ratio of 27.26.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NOW is on the same level as its industry peers.
  • NOW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.04.
Industry RankSector Rank
PE 32.73
Fwd PE 27.26
NOW Price Earnings VS Forward Price EarningsNOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOW indicates a somewhat cheap valuation: NOW is cheaper than 60.29% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, NOW is valued a bit cheaper than 63.90% of the companies in the same industry.
Industry RankSector Rank
P/FCF 26.51
EV/EBITDA 43.98
NOW Per share dataNOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of NOW may justify a higher PE ratio.
  • A more expensive valuation may be justified as NOW's earnings are expected to grow with 20.56% in the coming years.
PEG (NY)1.63
PEG (5Y)1.08
EPS Next 2Y20.21%
EPS Next 3Y20.56%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. NOW Dividend Analysis

5.1 Amount

  • No dividends for NOW!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

NOW Fundamentals: All Metrics, Ratios and Statistics

SERVICENOW INC

NYSE:NOW (3/16/2026, 8:04:00 PM)

Premarket: 114.85 -0.03 (-0.03%)

114.88

+1.26 (+1.11%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners89.62%
Inst Owner Change343.86%
Ins Owners0.13%
Ins Owner Change26.56%
Market Cap120.16B
Revenue(TTM)13.28B
Net Income(TTM)1.75B
Analysts83.46
Price Target194.67 (69.46%)
Short Float %2.54%
Short Ratio1.35
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)7.51%
Min EPS beat(2)3.17%
Max EPS beat(2)11.85%
EPS beat(4)4
Avg EPS beat(4)8.19%
Min EPS beat(4)3.17%
Max EPS beat(4)13.44%
EPS beat(8)7
Avg EPS beat(8)6.88%
EPS beat(12)11
Avg EPS beat(12)8.95%
EPS beat(16)15
Avg EPS beat(16)8.07%
Revenue beat(2)2
Avg Revenue beat(2)0.39%
Min Revenue beat(2)0.17%
Max Revenue beat(2)0.62%
Revenue beat(4)3
Avg Revenue beat(4)0.48%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)2%
Revenue beat(8)4
Avg Revenue beat(8)0.16%
Revenue beat(12)6
Avg Revenue beat(12)0.11%
Revenue beat(16)7
Avg Revenue beat(16)-0.13%
PT rev (1m)-2.25%
PT rev (3m)-83.5%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-79.6%
EPS NY rev (1m)0.53%
EPS NY rev (3m)-79.54%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)2.06%
Valuation
Industry RankSector Rank
PE 32.73
Fwd PE 27.26
P/S 9.05
P/FCF 26.51
P/OCF 22.07
P/B 9.27
P/tB 14.54
EV/EBITDA 43.98
EPS(TTM)3.51
EY3.06%
EPS(NY)4.21
Fwd EY3.67%
FCF(TTM)4.33
FCFY3.77%
OCF(TTM)5.2
OCFY4.53%
SpS12.69
BVpS12.39
TBVpS7.9
PEG (NY)1.63
PEG (5Y)1.08
Graham Number31.29
Profitability
Industry RankSector Rank
ROA 6.71%
ROE 13.48%
ROCE 11.72%
ROIC 9.33%
ROICexc 15.63%
ROICexgc 31.55%
OM 13.76%
PM (TTM) 13.16%
GM 77.56%
FCFM 34.14%
ROA(3y)7.89%
ROA(5y)5.65%
ROE(3y)17%
ROE(5y)12.74%
ROIC(3y)8.15%
ROIC(5y)6.36%
ROICexc(3y)14.94%
ROICexc(5y)12.45%
ROICexgc(3y)23.6%
ROICexgc(5y)19.82%
ROCE(3y)10.23%
ROCE(5y)7.99%
ROICexgc growth 3Y29.88%
ROICexgc growth 5Y24.4%
ROICexc growth 3Y18.65%
ROICexc growth 5Y13.29%
OM growth 3Y41.21%
OM growth 5Y25.68%
PM growth 3Y43.17%
PM growth 5Y38.09%
GM growth 3Y-0.3%
GM growth 5Y-0.14%
F-Score5
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.33
Debt/EBITDA 0.58
Cap/Depr 123.44%
Cap/Sales 6.86%
Interest Coverage 250
Cash Conversion 212.24%
Profit Quality 259.33%
Current Ratio 1
Quick Ratio 1
Altman-Z N/A
F-Score5
WACC10.8%
ROIC/WACC0.86
Cap/Depr(3y)135.03%
Cap/Depr(5y)123.33%
Cap/Sales(3y)7.57%
Cap/Sales(5y)7.42%
Profit Quality(3y)217.46%
Profit Quality(5y)420.03%
High Growth Momentum
Growth
EPS 1Y (TTM)25.99%
EPS 3Y32.23%
EPS 5Y30.37%
EPS Q2Q%25.34%
EPS Next Y20.07%
EPS Next 2Y20.21%
EPS Next 3Y20.56%
EPS Next 5Y19.08%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y22.38%
Revenue growth 5Y24.05%
Sales Q2Q%20.66%
Revenue Next Year20.73%
Revenue Next 2Y19.56%
Revenue Next 3Y19.36%
Revenue Next 5Y19.17%
EBIT growth 1Y33.94%
EBIT growth 3Y72.81%
EBIT growth 5Y55.91%
EBIT Next Year44.76%
EBIT Next 3Y26.07%
EBIT Next 5Y22.49%
FCF growth 1Y34.31%
FCF growth 3Y27.77%
FCF growth 5Y27.34%
OCF growth 1Y27.58%
OCF growth 3Y25.98%
OCF growth 5Y24.96%

SERVICENOW INC / NOW Fundamental Analysis FAQ

What is the ChartMill fundamental rating of SERVICENOW INC (NOW) stock?

ChartMill assigns a fundamental rating of 6 / 10 to NOW.


What is the valuation status of SERVICENOW INC (NOW) stock?

ChartMill assigns a valuation rating of 4 / 10 to SERVICENOW INC (NOW). This can be considered as Fairly Valued.


How profitable is SERVICENOW INC (NOW) stock?

SERVICENOW INC (NOW) has a profitability rating of 8 / 10.


How financially healthy is SERVICENOW INC?

The financial health rating of SERVICENOW INC (NOW) is 4 / 10.


What is the expected EPS growth for SERVICENOW INC (NOW) stock?

The Earnings per Share (EPS) of SERVICENOW INC (NOW) is expected to grow by 20.07% in the next year.