SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4S0 - US81762P1021 - Common Stock
111.46 EUR
-2.56 (-2.25%)
Overall 4S0 gets a fundamental rating of 6 out of 10. We evaluated 4S0 against 119 industry peers in the Software industry. 4S0 scores excellent on profitability, but there are some minor concerns on its financial health. 4S0 is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
- Each year in the past 5 years 4S0 had a positive operating cash flow.
1.2 Ratios
- 4S0 has a Return On Assets of 7.94%. This is in the better half of the industry: 4S0 outperforms 68.00% of its industry peers.
- The Return On Equity of 4S0 (15.32%) is better than 64.80% of its industry peers.
- 4S0 has a Return On Invested Capital of 10.34%. This is in the better half of the industry: 4S0 outperforms 75.20% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 4S0 is significantly below the industry average of 13.47%.
- The last Return On Invested Capital (10.34%) for 4S0 is above the 3 year average (6.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 15.32% | ||
| ROIC | 10.34% |
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
- 4S0 has a better Profit Margin (13.67%) than 64.80% of its industry peers.
- 4S0's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 13.85%, 4S0 is in the better half of the industry, outperforming 69.60% of the companies in the same industry.
- 4S0's Operating Margin has improved in the last couple of years.
- The Gross Margin of 4S0 (78.05%) is better than 65.60% of its industry peers.
- In the last couple of years the Gross Margin of 4S0 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.85% | ||
| PM (TTM) | 13.67% | ||
| GM | 78.05% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 4S0 is destroying value.
- Compared to 1 year ago, 4S0 has more shares outstanding
- 4S0 has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for 4S0 has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of 4S0 is 0.38, which is an excellent value as it means it would take 4S0, only 0.38 years of fcf income to pay off all of its debts.
- 4S0's Debt to FCF ratio of 0.38 is amongst the best of the industry. 4S0 outperforms 86.40% of its industry peers.
- A Debt/Equity ratio of 0.13 indicates that 4S0 is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.13, 4S0 is doing good in the industry, outperforming 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.96
WACC10.81%
2.3 Liquidity
- 4S0 has a Current Ratio of 1.06. This is a normal value and indicates that 4S0 is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.06, 4S0 is doing worse than 66.40% of the companies in the same industry.
- A Quick Ratio of 1.06 indicates that 4S0 should not have too much problems paying its short term obligations.
- 4S0 has a worse Quick ratio (1.06) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- 4S0 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.31%, which is quite impressive.
- 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.
- The Revenue has grown by 21.05% in the past year. This is a very strong growth!
- 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)24.31%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%29.57%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.81%
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 18.75% yearly.
- Based on estimates for the next years, 4S0 will show a quite strong growth in Revenue. The Revenue will grow by 18.38% on average per year.
EPS Next Y29.2%
EPS Next 2Y21.68%
EPS Next 3Y20.96%
EPS Next 5Y18.75%
Revenue Next Year20.57%
Revenue Next 2Y19.51%
Revenue Next 3Y19.21%
Revenue Next 5Y18.38%
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.
4. Valuation
4.1 Price/Earnings Ratio
- 4S0 is valuated quite expensively with a Price/Earnings ratio of 38.97.
- The rest of the industry has a similar Price/Earnings ratio as 4S0.
- When comparing the Price/Earnings ratio of 4S0 to the average of the S&P500 Index (27.38), we can say 4S0 is valued slightly more expensively.
- 4S0 is valuated quite expensively with a Price/Forward Earnings ratio of 31.39.
- 4S0's Price/Forward Earnings is on the same level as the industry average.
- 4S0 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.97 | ||
| Fwd PE | 31.39 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 4S0 is valued cheaply inside the industry as 82.40% of the companies are valued more expensively.
- 96.00% of the companies in the same industry are more expensive than 4S0, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.88 | ||
| EV/EBITDA | 8.32 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of 4S0 may justify a higher PE ratio.
- 4S0's earnings are expected to grow with 20.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)1.18
EPS Next 2Y21.68%
EPS Next 3Y20.96%
5. Dividend
5.1 Amount
- 4S0 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:4S0 (1/16/2026, 7:00:00 PM)
111.46
-2.56 (-2.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)01-29 2026-01-29/amc
Inst Owners90.36%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap23.13B
Revenue(TTM)12.67B
Net Income(TTM)1.73B
Analysts83.53
Price Target192.07 (72.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)12.64%
Min EPS beat(2)11.85%
Max EPS beat(2)13.44%
EPS beat(4)3
Avg EPS beat(4)7.15%
Min EPS beat(4)-0.99%
Max EPS beat(4)13.44%
EPS beat(8)7
Avg EPS beat(8)7.8%
EPS beat(12)11
Avg EPS beat(12)9.66%
EPS beat(16)15
Avg EPS beat(16)7.95%
Revenue beat(2)2
Avg Revenue beat(2)1.31%
Min Revenue beat(2)0.62%
Max Revenue beat(2)2%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)2%
Revenue beat(8)4
Avg Revenue beat(8)0.21%
Revenue beat(12)5
Avg Revenue beat(12)0.04%
Revenue beat(16)6
Avg Revenue beat(16)-0.15%
PT rev (1m)-80.91%
PT rev (3m)-80.7%
EPS NQ rev (1m)-80%
EPS NQ rev (3m)-80.33%
EPS NY rev (1m)-79.43%
EPS NY rev (3m)-78.92%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.97 | ||
| Fwd PE | 31.39 | ||
| P/S | 2.12 | ||
| P/FCF | 6.88 | ||
| P/OCF | 5.55 | ||
| P/B | 2.38 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | 8.32 |
EPS(TTM)2.86
EY2.57%
EPS(NY)3.55
Fwd EY3.19%
FCF(TTM)16.2
FCFY14.54%
OCF(TTM)20.08
OCFY18.02%
SpS52.55
BVpS46.89
TBVpS37.71
PEG (NY)1.33
PEG (5Y)1.18
Graham Number54.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 15.32% | ||
| ROCE | 12.61% | ||
| ROIC | 10.34% | ||
| ROICexc | 16.91% | ||
| ROICexgc | 22.84% | ||
| OM | 13.85% | ||
| PM (TTM) | 13.67% | ||
| GM | 78.05% | ||
| FCFM | 30.83% |
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%
ROICexgc growth 3Y18.02%
ROICexgc 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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 137.65% | ||
| Cap/Sales | 7.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 198.81% | ||
| Profit Quality | 225.59% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | N/A |
F-Score7
WACC10.81%
ROIC/WACC0.96
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)24.31%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%29.57%
EPS Next Y29.2%
EPS Next 2Y21.68%
EPS Next 3Y20.96%
EPS Next 5Y18.75%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.81%
Revenue Next Year20.57%
Revenue Next 2Y19.51%
Revenue Next 3Y19.21%
Revenue Next 5Y18.38%
EBIT growth 1Y39.29%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year50.19%
EBIT Next 3Y29.86%
EBIT Next 5Y23.66%
FCF growth 1Y64.21%
FCF growth 3Y23.49%
FCF growth 5Y30.31%
OCF growth 1Y63.82%
OCF growth 3Y24.88%
OCF growth 5Y28.12%
SERVICENOW INC / 4S0.DE FAQ
What is the ChartMill fundamental rating of SERVICENOW INC (4S0.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 4S0.DE.
Can you provide the valuation status for SERVICENOW INC?
ChartMill assigns a valuation rating of 5 / 10 to SERVICENOW INC (4S0.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for SERVICENOW INC?
SERVICENOW INC (4S0.DE) has a profitability rating of 7 / 10.
What is the expected EPS growth for SERVICENOW INC (4S0.DE) stock?
The Earnings per Share (EPS) of SERVICENOW INC (4S0.DE) is expected to grow by 29.2% in the next year.