SERVICENOW INC (NOW) Stock Fundamental Analysis

NYSE:NOW • US81762P1021

104.85 USD
-2.52 (-2.35%)
Last: Feb 20, 2026, 01:50 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, NOW scores 5 out of 10 in our fundamental rating. NOW was compared to 276 industry peers in the Software industry. While NOW has a great profitability rating, there are some minor concerns on its financial health. NOW is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • NOW had positive earnings in the past year.
  • In the past year NOW had a positive cash flow from operations.
  • Each year in the past 5 years NOW has been profitable.
  • In the past 5 years NOW always reported a positive cash flow from operatings.
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 75.72% of the companies in the same industry.
  • NOW's Return On Equity of 13.48% is fine compared to the rest of the industry. NOW outperforms 78.62% of its industry peers.
  • NOW's Return On Invested Capital of 9.33% is amongst the best of the industry. NOW outperforms 82.61% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NOW is below the industry average of 10.64%.
  • 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

  • The Profit Margin of NOW (13.16%) is better than 75.00% of its industry peers.
  • NOW's Profit Margin has improved in the last couple of years.
  • NOW has a better Operating Margin (13.76%) than 79.35% of its industry peers.
  • In the last couple of years the Operating Margin of NOW has grown nicely.
  • The Gross Margin of NOW (77.56%) is better than 73.55% of its industry peers.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

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.
  • Compared to 1 year ago, NOW has an improved debt to assets ratio.
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

  • NOW has a debt to FCF ratio of 0.33. This is a very positive value and a sign of high solvency as it would only need 0.33 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 0.33, NOW is doing good in the industry, outperforming 79.35% 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 has a Debt to Equity ratio (0.12) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.33
Altman-Z N/A
ROIC/WACC0.85
WACC10.99%
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.
  • NOW has a Current ratio of 1.00. This is in the lower half of the industry: NOW underperforms 73.91% of its industry peers.
  • A Quick Ratio of 1.00 indicates that NOW should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.00, NOW is not doing good in the industry: 72.83% of the companies in the same industry are doing better.
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

More info and screens

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

8

3. Growth

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.
  • 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.
  • Based on estimates for the next years, NOW will show a quite strong growth in Revenue. The Revenue will grow by 19.17% on average per year.
EPS Next Y19.44%
EPS Next 2Y25.87%
EPS Next 3Y20.67%
EPS Next 5Y19.08%
Revenue Next Year20.41%
Revenue Next 2Y19.44%
Revenue Next 3Y19.21%
Revenue Next 5Y19.17%

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.
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

More info and screens

Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 29.87, which means the current valuation is very expensive for NOW.
  • Compared to the rest of the industry, the Price/Earnings ratio of NOW is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of NOW to the average of the S&P500 Index (27.09), we can say NOW is valued inline with the index average.
  • The Price/Forward Earnings ratio is 25.01, which means the current valuation is very expensive for NOW.
  • 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 27.98.
Industry RankSector Rank
PE 29.87
Fwd PE 25.01
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

  • NOW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NOW is cheaper than 60.14% of the companies in the same industry.
  • 67.03% of the companies in the same industry are more expensive than NOW, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 24.19
EV/EBITDA 40.92
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.
  • NOW has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as NOW's earnings are expected to grow with 20.67% in the coming years.
PEG (NY)1.54
PEG (5Y)0.98
EPS Next 2Y25.87%
EPS Next 3Y20.67%

More info and screens

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

0

5. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

SERVICENOW INC

NYSE:NOW (2/20/2026, 1:50:09 PM)

104.85

-2.52 (-2.35%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners90.36%
Inst Owner Change263.21%
Ins Owners0.11%
Ins Owner Change10.48%
Market Cap109.67B
Revenue(TTM)13.28B
Net Income(TTM)1.75B
Analysts83.46
Price Target199.14 (89.93%)
Short Float %2.03%
Short Ratio1.49
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)-14.08%
PT rev (3m)-83.12%
EPS NQ rev (1m)1.82%
EPS NQ rev (3m)-79.59%
EPS NY rev (1m)1.63%
EPS NY rev (3m)-79.53%
Revenue NQ rev (1m)2.03%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)1.65%
Revenue NY rev (3m)1.8%
Valuation
Industry RankSector Rank
PE 29.87
Fwd PE 25.01
P/S 8.26
P/FCF 24.19
P/OCF 20.15
P/B 8.46
P/tB 13.27
EV/EBITDA 40.92
EPS(TTM)3.51
EY3.35%
EPS(NY)4.19
Fwd EY4%
FCF(TTM)4.33
FCFY4.13%
OCF(TTM)5.2
OCFY4.96%
SpS12.69
BVpS12.39
TBVpS7.9
PEG (NY)1.54
PEG (5Y)0.98
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
WACC10.99%
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 Y19.44%
EPS Next 2Y25.87%
EPS Next 3Y20.67%
EPS Next 5Y19.08%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y22.38%
Revenue growth 5Y24.05%
Sales Q2Q%20.66%
Revenue Next Year20.41%
Revenue Next 2Y19.44%
Revenue Next 3Y19.21%
Revenue Next 5Y19.17%
EBIT growth 1Y33.94%
EBIT growth 3Y72.81%
EBIT growth 5Y55.91%
EBIT Next Year39.14%
EBIT Next 3Y22.86%
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 FAQ

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

ChartMill assigns a fundamental rating of 5 / 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 7 / 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 19.44% in the next year.