SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4S0 - US81762P1021 - Common Stock
130.68 EUR
+0.86 (+0.66%)
Taking everything into account, 4S0 scores 6 out of 10 in our fundamental rating. 4S0 was compared to 105 industry peers in the Software industry. 4S0 scores excellent on profitability, but there are some minor concerns on its financial health. 4S0 is growing strongly while it is still valued neutral. This is a good combination!
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.
4S0 had positive earnings in each of the past 5 years.
4S0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.94%, 4S0 is doing good in the industry, outperforming 65.71% of the companies in the same industry.
4S0 has a Return On Equity of 15.32%. This is in the better half of the industry: 4S0 outperforms 61.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.34%, 4S0 is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
4S0 had an Average Return On Invested Capital over the past 3 years of 6.51%. This is significantly below the industry average of 13.30%.
The 3 year average ROIC (6.51%) for 4S0 is below the current ROIC(10.34%), indicating increased profibility in the last year.
| 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 Profit Margin of 13.67%. This is in the better half of the industry: 4S0 outperforms 62.86% of its industry peers.
In the last couple of years the Profit Margin of 4S0 has declined.
The Operating Margin of 4S0 (13.85%) is better than 63.81% of its industry peers.
In the last couple of years the Operating Margin of 4S0 has grown nicely.
4S0 has a Gross Margin of 78.05%. This is in the better half of the industry: 4S0 outperforms 61.90% of its industry peers.
4S0's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 4S0 is destroying value.
4S0 has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 4S0 has more shares outstanding
Compared to 1 year ago, 4S0 has an improved debt to assets ratio.
2.2 Solvency
4S0 has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.38, 4S0 belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that 4S0 is not too dependend on debt financing.
4S0 has a better Debt to Equity ratio (0.13) than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.96
WACC10.79%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 4S0 should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, 4S0 is doing worse than 66.67% of the companies in the same industry.
4S0 has a Quick 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.
With a Quick ratio value of 1.06, 4S0 is not doing good in the industry: 64.76% of the companies in the same industry are doing better.
| 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.
4S0 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.14% yearly.
The Revenue has grown by 21.05% in the past year. This is a very strong growth!
The Revenue has been growing by 25.99% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 63.46% on average over the next years. This is a very strong growth
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 5Y63.46%
Revenue Next Year20.57%
Revenue Next 2Y19.49%
Revenue Next 3Y19.17%
Revenue Next 5Y18.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
The Price/Earnings ratio is 46.18, which means the current valuation is very expensive for 4S0.
4S0's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.84, 4S0 is valued quite expensively.
A Price/Forward Earnings ratio of 37.28 indicates a quite expensive valuation of 4S0.
The rest of the industry has a similar Price/Forward Earnings ratio as 4S0.
The average S&P500 Price/Forward Earnings ratio is at 23.40. 4S0 is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.18 | ||
| Fwd PE | 37.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4S0 is valued cheaper than 80.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 4S0 is valued cheaper than 92.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.17 | ||
| EV/EBITDA | 10.39 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
4S0 has a very decent profitability rating, which 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)1.58
PEG (5Y)1.39
EPS Next 2Y21.68%
EPS Next 3Y20.96%
5. Dividend
5.1 Amount
No dividends for 4S0!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:4S0 (12/29/2025, 7:00:00 PM)
130.68
+0.86 (+0.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.72%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap27.11B
Revenue(TTM)12.67B
Net Income(TTM)1.73B
Analysts82.75
Price Target198.37 (51.8%)
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)-80.81%
PT rev (3m)-80.15%
EPS NQ rev (1m)-80%
EPS NQ rev (3m)-80.34%
EPS NY rev (1m)-79.3%
EPS NY rev (3m)-78.92%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.18 | ||
| Fwd PE | 37.28 | ||
| P/S | 2.52 | ||
| P/FCF | 8.17 | ||
| P/OCF | 6.59 | ||
| P/B | 2.82 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 10.39 |
EPS(TTM)2.83
EY2.17%
EPS(NY)3.51
Fwd EY2.68%
FCF(TTM)16
FCFY12.24%
OCF(TTM)19.83
OCFY15.17%
SpS51.89
BVpS46.29
TBVpS37.24
PEG (NY)1.58
PEG (5Y)1.39
Graham Number54.29
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
WACC10.79%
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 5Y63.46%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.81%
Revenue Next Year20.57%
Revenue Next 2Y19.49%
Revenue Next 3Y19.17%
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.
What is the valuation status for 4S0 stock?
ChartMill assigns a valuation rating of 4 / 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 financial health of SERVICENOW INC (4S0.DE) stock?
The financial health rating of SERVICENOW INC (4S0.DE) is 4 / 10.