SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
FRA:4S0 - Deutsche Boerse Ag - US81762P1021 - Common Stock - Currency: EUR
Overall 4S0 gets a fundamental rating of 6 out of 10. We evaluated 4S0 against 101 industry peers in the Software industry. While 4S0 has a great profitability rating, there are some minor concerns on its financial health. 4S0 is valued quite expensively, but it does show have an excellent growth rating. These ratings could make 4S0 a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
4S0 had positive earnings in the past year.
In the past year 4S0 had a positive cash flow from operations.
In the past 5 years 4S0 has always been profitable.
Each year in the past 5 years 4S0 had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.33%, 4S0 is doing good in the industry, outperforming 74.26% of the companies in the same industry.
4S0 has a Return On Equity of 15.17%. This is in the better half of the industry: 4S0 outperforms 77.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.56%, 4S0 is in the better half of the industry, outperforming 75.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 4S0 is below the industry average of 10.93%.
The 3 year average ROIC (6.51%) for 4S0 is below the current ROIC(9.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 15.17% | ||
| ROIC | 9.56% |
ROA(3y)6.46%
ROA(5y)4.58%
ROE(3y)14.66%
ROE(5y)10.88%
ROIC(3y)6.51%
ROIC(5y)5.28%
1.3 Margins
4S0's Profit Margin of 13.41% is fine compared to the rest of the industry. 4S0 outperforms 71.29% of its industry peers.
4S0's Profit Margin has declined in the last couple of years.
4S0 has a better Operating Margin (12.93%) than 69.31% of its industry peers.
4S0's Operating Margin has improved in the last couple of years.
The Gross Margin of 4S0 (78.92%) is better than 67.33% 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 | 12.93% | ||
| PM (TTM) | 13.41% | ||
| GM | 78.92% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 4S0 is destroying value.
The number of shares outstanding for 4S0 has been increased compared to 1 year ago.
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.
2.2 Solvency
4S0 has an Altman-Z score of 12.40. This indicates that 4S0 is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 4S0 (12.40) is better than 94.06% of its industry peers.
The Debt to FCF ratio of 4S0 is 0.41, which is an excellent value as it means it would take 4S0, only 0.41 years of fcf income to pay off all of its debts.
4S0 has a better Debt to FCF ratio (0.41) than 90.10% of its industry peers.
4S0 has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
4S0 has a better Debt to Equity ratio (0.15) than 69.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 12.4 |
ROIC/WACC0.88
WACC10.83%
2.3 Liquidity
A Current Ratio of 1.12 indicates that 4S0 should not have too much problems paying its short term obligations.
With a Current ratio value of 1.12, 4S0 perfoms like the industry average, outperforming 42.57% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that 4S0 should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, 4S0 is in line with its industry, outperforming 44.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.29% over the past year.
The Earnings Per Share has been growing by 33.14% on average over the past years. This is a very strong growth
Looking at the last year, 4S0 shows a very strong growth in Revenue. The Revenue has grown by 21.01%.
The Revenue has been growing by 25.99% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)23.29%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%18.48%
Revenue 1Y (TTM)21.01%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%18.63%
3.2 Future
Based on estimates for the next years, 4S0 will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.14% on average per year.
4S0 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.04% yearly.
EPS Next Y20.05%
EPS Next 2Y19.97%
EPS Next 3Y20.13%
EPS Next 5Y19.14%
Revenue Next Year18.63%
Revenue Next 2Y18.99%
Revenue Next 3Y18.85%
Revenue Next 5Y18.04%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 65.67, the valuation of 4S0 can be described as expensive.
4S0's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. 4S0 is valued rather expensively when compared to this.
4S0 is valuated quite expensively with a Price/Forward Earnings ratio of 47.68.
The rest of the industry has a similar Price/Forward Earnings ratio as 4S0.
The average S&P500 Price/Forward Earnings ratio is at 21.76. 4S0 is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.67 | ||
| Fwd PE | 47.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4S0 is valued a bit more expensive than the industry average as 64.36% of the companies are valued more cheaply.
4S0's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.53 | ||
| EV/EBITDA | 94.17 |
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.
4S0's earnings are expected to grow with 20.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.28
PEG (5Y)1.98
EPS Next 2Y19.97%
EPS Next 3Y20.13%
5. Dividend
5.1 Amount
No dividends for 4S0!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:4S0 (7/11/2025, 7:00:00 PM)
816.3
-25.1 (-2.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.37%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap168.96B
Analysts83.2
Price Target965.92 (18.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)1
Avg EPS beat(2)1.66%
Min EPS beat(2)-0.99%
Max EPS beat(2)4.31%
EPS beat(4)3
Avg EPS beat(4)4.75%
Min EPS beat(4)-0.99%
Max EPS beat(4)9.1%
EPS beat(8)7
Avg EPS beat(8)8.01%
EPS beat(12)11
Avg EPS beat(12)8.33%
EPS beat(16)15
Avg EPS beat(16)7.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.1%
Max Revenue beat(2)-0.87%
Revenue beat(4)1
Avg Revenue beat(4)-0.31%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)0.97%
Revenue beat(8)3
Avg Revenue beat(8)-0.13%
Revenue beat(12)3
Avg Revenue beat(12)-0.45%
Revenue beat(16)6
Avg Revenue beat(16)-0.05%
PT rev (1m)0.97%
PT rev (3m)-8.1%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-2.1%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.67 | ||
| Fwd PE | 47.68 | ||
| P/S | 17.25 | ||
| P/FCF | 54.53 | ||
| P/OCF | 42.98 | ||
| P/B | 19.51 | ||
| P/tB | 22.99 | ||
| EV/EBITDA | 94.17 |
EPS(TTM)12.43
EY1.52%
EPS(NY)17.12
Fwd EY2.1%
FCF(TTM)14.97
FCFY1.83%
OCF(TTM)18.99
OCFY2.33%
SpS47.32
BVpS41.84
TBVpS35.5
PEG (NY)3.28
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 15.17% | ||
| ROCE | 11.66% | ||
| ROIC | 9.56% | ||
| ROICexc | 19.88% | ||
| ROICexgc | 26.54% | ||
| OM | 12.93% | ||
| PM (TTM) | 13.41% | ||
| GM | 78.92% | ||
| FCFM | 31.63% |
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-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 164.14% | ||
| Cap/Sales | 8.5% | ||
| Interest Coverage | 64.48 | ||
| Cash Conversion | 221.62% | ||
| Profit Quality | 235.89% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 12.4 |
F-Score8
WACC10.83%
ROIC/WACC0.88
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)23.29%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%18.48%
EPS Next Y20.05%
EPS Next 2Y19.97%
EPS Next 3Y20.13%
EPS Next 5Y19.14%
Revenue 1Y (TTM)21.01%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%18.63%
Revenue Next Year18.63%
Revenue Next 2Y18.99%
Revenue Next 3Y18.85%
Revenue Next 5Y18.04%
EBIT growth 1Y56.11%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year44.62%
EBIT Next 3Y30%
EBIT Next 5Y24.59%
FCF growth 1Y69.53%
FCF growth 3Y23.49%
FCF growth 5Y30.31%
OCF growth 1Y66.65%
OCF growth 3Y24.88%
OCF growth 5Y28.12%