SERVICENOW INC (NOW) Fundamental Analysis & Valuation

NYSE:NOW • US81762P1021

Current stock price

83 USD
-6.81 (-7.58%)
At close:
83.1948 USD
+0.19 (+0.23%)
After Hours:

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.
  • In the past year NOW had a positive cash flow from operations.
  • In the past 5 years NOW has always been profitable.
  • Each year in the past 5 years NOW had a positive operating cash flow.
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

  • With a decent Return On Assets value of 6.71%, NOW is doing good in the industry, outperforming 79.27% of the companies in the same industry.
  • NOW has a better Return On Equity (13.48%) than 79.27% of its industry peers.
  • NOW's Return On Invested Capital of 9.33% is amongst the best of the industry. NOW outperforms 84.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NOW is below the industry average of 10.99%.
  • 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's Profit Margin of 13.16% is fine compared to the rest of the industry. NOW outperforms 78.55% of its industry peers.
  • In the last couple of years the Profit Margin of NOW has grown nicely.
  • The Operating Margin of NOW (13.76%) is better than 80.36% of its industry peers.
  • In the last couple of years the Operating Margin of NOW has grown nicely.
  • Looking at the Gross Margin, with a value of 77.56%, NOW is in the better half of the industry, outperforming 73.82% of the companies in the same industry.
  • NOW's Gross Margin has been stable in the last couple of years.
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.
  • NOW has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, NOW has more shares outstanding
  • 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 78.91% of the companies in the same industry.
  • A Debt/Equity ratio of 0.12 indicates that NOW is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.12, NOW is in line with its industry, outperforming 52.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.33
Altman-Z N/A
ROIC/WACC0.85
WACC10.93%
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

  • NOW has a Current Ratio of 1.00. This is a normal value and indicates that NOW is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.00, NOW is not doing good in the industry: 74.91% of the companies in the same industry are doing better.
  • 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 73.82% 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

  • The Earnings Per Share has grown by an impressive 25.99% over the past year.
  • NOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.37% yearly.
  • NOW shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.88%.
  • NOW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.05% yearly.
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

  • The Earnings Per Share is expected to grow by 19.08% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 19.17% on average over the next years. This is quite good.
EPS Next Y20.01%
EPS Next 2Y20.21%
EPS Next 3Y20.64%
EPS Next 5Y19.08%
Revenue Next Year20.75%
Revenue Next 2Y19.56%
Revenue Next 3Y19.34%
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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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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5

4. NOW Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 23.65, NOW is valued on the expensive side.
  • NOW's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of NOW to the average of the S&P500 Index (26.78), we can say NOW is valued inline with the index average.
  • A Price/Forward Earnings ratio of 19.70 indicates a rather expensive valuation of NOW.
  • NOW's Price/Forward Earnings is on the same level as the industry average.
  • NOW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.54.
Industry RankSector Rank
PE 23.65
Fwd PE 19.7
NOW Price Earnings VS Forward Price EarningsNOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NOW is valued a bit cheaper than the industry average as 62.91% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, NOW is valued a bit cheaper than the industry average as 68.73% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.15
EV/EBITDA 33.76
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

  • NOW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • NOW has an outstanding profitability rating, which may justify a higher PE ratio.
  • NOW's earnings are expected to grow with 20.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)0.78
EPS Next 2Y20.21%
EPS Next 3Y20.64%

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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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NOW Fundamentals: All Metrics, Ratios and Statistics

SERVICENOW INC

NYSE:NOW (4/10/2026, 8:04:00 PM)

After market: 83.1948 +0.19 (+0.23%)

83

-6.81 (-7.58%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-22
Inst Owners90.1%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner Change26.56%
Market Cap86.82B
Revenue(TTM)13.28B
Net Income(TTM)1.75B
Analysts83.46
Price Target188.85 (127.53%)
Short Float %2.67%
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)-0.5%
PT rev (3m)-16.43%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.94%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.98%
Valuation
Industry RankSector Rank
PE 23.65
Fwd PE 19.7
P/S 6.54
P/FCF 19.15
P/OCF 15.95
P/B 6.7
P/tB 10.5
EV/EBITDA 33.76
EPS(TTM)3.51
EY4.23%
EPS(NY)4.21
Fwd EY5.08%
FCF(TTM)4.33
FCFY5.22%
OCF(TTM)5.2
OCFY6.27%
SpS12.69
BVpS12.39
TBVpS7.9
PEG (NY)1.18
PEG (5Y)0.78
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
WACC10.93%
ROIC/WACC0.85
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 Y20.01%
EPS Next 2Y20.21%
EPS Next 3Y20.64%
EPS Next 5Y19.08%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y22.38%
Revenue growth 5Y24.05%
Sales Q2Q%20.66%
Revenue Next Year20.75%
Revenue Next 2Y19.56%
Revenue Next 3Y19.34%
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 5 / 10 to SERVICENOW INC (NOW). This can be considered as Fairly Valued.


Can you provide the profitability details for SERVICENOW INC?

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


What are the PE and PB ratios of SERVICENOW INC (NOW) stock?

The Price/Earnings (PE) ratio for SERVICENOW INC (NOW) is 23.65 and the Price/Book (PB) ratio is 6.7.


What is the earnings growth outlook for SERVICENOW INC?

The Earnings per Share (EPS) of SERVICENOW INC (NOW) is expected to grow by 20.01% in the next year.