SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
FRA:4S0 - Deutsche Boerse Ag - US81762P1021 - Common Stock - Currency: EUR
Taking everything into account, 4S0 scores 6 out of 10 in our fundamental rating. 4S0 was compared to 101 industry peers in the Software industry. While 4S0 has a great profitability rating, there are some minor concerns on its financial health. 4S0 shows excellent growth, but is valued quite expensive already. 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.
4S0 had a positive operating cash flow in the past year.
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
The Return On Assets of 4S0 (6.99%) is better than 69.70% of its industry peers.
The Return On Equity of 4S0 (14.83%) is better than 72.73% of its industry peers.
With a decent Return On Invested Capital value of 9.30%, 4S0 is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 4S0 is significantly below the industry average of 11.53%.
The last Return On Invested Capital (9.30%) for 4S0 is above the 3 year average (6.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 14.83% | ||
| ROIC | 9.3% |
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
The Profit Margin of 4S0 (12.97%) is better than 67.68% of its industry peers.
4S0's Profit Margin has declined in the last couple of years.
4S0 has a Operating Margin of 12.42%. This is in the better half of the industry: 4S0 outperforms 69.70% of its industry peers.
4S0's Operating Margin has improved in the last couple of years.
4S0's Gross Margin of 79.18% is fine compared to the rest of the industry. 4S0 outperforms 71.72% of its industry peers.
4S0's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.42% | ||
| PM (TTM) | 12.97% | ||
| GM | 79.18% |
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%
2. Health
2.1 Basic Checks
4S0 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 4S0 has been increased compared to 1 year ago.
Compared to 5 years ago, 4S0 has more shares outstanding
The debt/assets ratio for 4S0 has been reduced compared to a year ago.
2.2 Solvency
4S0 has an Altman-Z score of 10.71. This indicates that 4S0 is financially healthy and has little risk of bankruptcy at the moment.
4S0's Altman-Z score of 10.71 is amongst the best of the industry. 4S0 outperforms 92.93% of its industry peers.
4S0 has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
4S0 has a Debt to FCF ratio of 0.44. This is amongst the best in the industry. 4S0 outperforms 87.88% 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 70.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 10.71 |
ROIC/WACC0.67
WACC13.9%
2.3 Liquidity
A Current Ratio of 1.10 indicates that 4S0 should not have too much problems paying its short term obligations.
4S0's Current ratio of 1.10 is in line compared to the rest of the industry. 4S0 outperforms 41.41% of its industry peers.
A Quick Ratio of 1.10 indicates that 4S0 should not have too much problems paying its short term obligations.
4S0 has a Quick ratio (1.10) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
4S0 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.34%, which is quite impressive.
The Earnings Per Share has been growing by 33.14% on average over the past years. This is a very strong growth
The Revenue has grown by 22.44% 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)29.34%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%18.01%
Revenue 1Y (TTM)22.44%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.34%
3.2 Future
Based on estimates for the next years, 4S0 will show a very strong growth in Earnings Per Share. The EPS will grow by 20.23% on average per year.
4S0 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.58% yearly.
EPS Next Y19.09%
EPS Next 2Y20.08%
EPS Next 3Y20.8%
EPS Next 5Y20.23%
Revenue Next Year18.77%
Revenue Next 2Y19.23%
Revenue Next 3Y19.41%
Revenue Next 5Y18.58%
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
The Price/Earnings ratio is 60.47, which means the current valuation is very expensive for 4S0.
4S0's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.35. 4S0 is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 50.77, the valuation of 4S0 can be described as expensive.
4S0's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of 4S0 to the average of the S&P500 Index (22.10), we can say 4S0 is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.47 | ||
| Fwd PE | 50.77 |
4.2 Price Multiples
4S0's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 4S0.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.41 | ||
| EV/EBITDA | 85.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 4S0 may justify a higher PE ratio.
A more expensive valuation may be justified as 4S0's earnings are expected to grow with 20.80% in the coming years.
PEG (NY)3.17
PEG (5Y)1.82
EPS Next 2Y20.08%
EPS Next 3Y20.8%
5. Dividend
5.1 Amount
4S0 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:4S0 (3/7/2025, 7:00:00 PM)
775.8
-57.1 (-6.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners92.16%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap159.81B
Analysts81.6
Price Target1133.18 (46.07%)
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)2.79%
Min EPS beat(2)-0.99%
Max EPS beat(2)6.57%
EPS beat(4)3
Avg EPS beat(4)5.56%
Min EPS beat(4)-0.99%
Max EPS beat(4)9.1%
EPS beat(8)7
Avg EPS beat(8)9.33%
EPS beat(12)11
Avg EPS beat(12)8.03%
EPS beat(16)15
Avg EPS beat(16)8.47%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-1.1%
Max Revenue beat(2)0.97%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)0.97%
Revenue beat(8)3
Avg Revenue beat(8)-0.07%
Revenue beat(12)4
Avg Revenue beat(12)-0.34%
Revenue beat(16)7
Avg Revenue beat(16)0.06%
PT rev (1m)1.49%
PT rev (3m)15.93%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)-1.78%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.47 | ||
| Fwd PE | 50.77 | ||
| P/S | 15.8 | ||
| P/FCF | 51.41 | ||
| P/OCF | 40.66 | ||
| P/B | 18.06 | ||
| P/tB | 21.35 | ||
| EV/EBITDA | 85.99 |
EPS(TTM)12.83
EY1.65%
EPS(NY)15.28
Fwd EY1.97%
FCF(TTM)15.09
FCFY1.95%
OCF(TTM)19.08
OCFY2.46%
SpS49.11
BVpS42.96
TBVpS36.34
PEG (NY)3.17
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 14.83% | ||
| ROCE | 11.34% | ||
| ROIC | 9.3% | ||
| ROICexc | 17.86% | ||
| ROICexgc | 23.39% | ||
| OM | 12.42% | ||
| PM (TTM) | 12.97% | ||
| GM | 79.18% | ||
| FCFM | 30.73% |
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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 158.16% | ||
| Cap/Sales | 8.12% | ||
| Interest Coverage | 59.3 | ||
| Cash Conversion | 221.32% | ||
| Profit Quality | 236.84% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 10.71 |
F-Score8
WACC13.9%
ROIC/WACC0.67
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)29.34%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%18.01%
EPS Next Y19.09%
EPS Next 2Y20.08%
EPS Next 3Y20.8%
EPS Next 5Y20.23%
Revenue 1Y (TTM)22.44%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.34%
Revenue Next Year18.77%
Revenue Next 2Y19.23%
Revenue Next 3Y19.41%
Revenue Next 5Y18.58%
EBIT growth 1Y79%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year46.11%
EBIT Next 3Y30.61%
EBIT Next 5Y27.19%
FCF growth 1Y24.82%
FCF growth 3Y23.49%
FCF growth 5Y30.31%
OCF growth 1Y25.57%
OCF growth 3Y24.88%
OCF growth 5Y28.12%