SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - FRA:4S0 - US81762P1021 - Common Stock
776.7 EUR
-4 (-0.51%)
We assign a fundamental rating of 5 out of 10 to 4S0. 4S0 was compared to 103 industry peers in the Software industry. 4S0 scores excellent on profitability, but there are some minor concerns on its financial health. 4S0 is valued quite expensive, but it does show an excellent growth.
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
Looking at the Return On Assets, with a value of 7.94%, 4S0 is in the better half of the industry, outperforming 70.87% of the companies in the same industry.
4S0's Return On Equity of 15.32% is fine compared to the rest of the industry. 4S0 outperforms 68.93% of its industry peers.
The Return On Invested Capital of 4S0 (10.34%) is better than 74.76% 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 12.76%.
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
Looking at the Profit Margin, with a value of 13.67%, 4S0 is in the better half of the industry, outperforming 65.05% of the companies in the same industry.
In the last couple of years the Profit Margin of 4S0 has declined.
The Operating Margin of 4S0 (13.85%) is better than 67.96% of its industry peers.
4S0's Operating Margin has improved in the last couple of years.
4S0 has a Gross Margin of 78.05%. This is in the better half of the industry: 4S0 outperforms 65.05% 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
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.
4S0 has more shares outstanding than it did 5 years ago.
4S0 has a better debt/assets ratio than last year.
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.
With an excellent Debt to FCF ratio value of 0.38, 4S0 belongs to the best of the industry, outperforming 89.32% of the companies in the same industry.
4S0 has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
4S0's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. 4S0 outperforms 71.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.94
WACC11.05%
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.
4S0's Current ratio of 1.06 is on the low side compared to the rest of the industry. 4S0 is outperformed by 66.02% of its industry peers.
A Quick Ratio of 1.06 indicates that 4S0 should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.06, 4S0 is doing worse than 64.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.31% 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
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
The Earnings Per Share is expected to grow by 18.95% on average over the next years. This is quite good.
Based on estimates for the next years, 4S0 will show a quite strong growth in Revenue. The Revenue will grow by 18.32% on average per year.
EPS Next Y22.54%
EPS Next 2Y20.53%
EPS Next 3Y20.68%
EPS Next 5Y18.95%
Revenue Next Year19.88%
Revenue Next 2Y19.25%
Revenue Next 3Y19.18%
Revenue Next 5Y18.32%
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
With a Price/Earnings ratio of 53.83, 4S0 can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of 4S0 is on the same level as its industry peers.
When comparing the Price/Earnings ratio of 4S0 to the average of the S&P500 Index (26.03), we can say 4S0 is valued expensively.
With a Price/Forward Earnings ratio of 44.19, 4S0 can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 4S0 is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 4S0 to the average of the S&P500 Index (22.27), we can say 4S0 is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.83 | ||
| Fwd PE | 44.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4S0 is valued a bit more expensive than the industry average as 65.05% 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 | 47.63 | ||
| EV/EBITDA | 74.07 |
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 20.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.39
PEG (5Y)1.62
EPS Next 2Y20.53%
EPS Next 3Y20.68%
5. Dividend
5.1 Amount
4S0 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:4S0 (11/4/2025, 7:00:00 PM)
776.7
-4 (-0.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.68%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap161.55B
Revenue(TTM)12.67B
Net Income(TTM)1.73B
Analysts83.53
Price Target1014.45 (30.61%)
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)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)1.52%
PT rev (3m)4.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.83 | ||
| Fwd PE | 44.19 | ||
| P/S | 14.68 | ||
| P/FCF | 47.63 | ||
| P/OCF | 38.42 | ||
| P/B | 16.46 | ||
| P/tB | 20.46 | ||
| EV/EBITDA | 74.07 |
EPS(TTM)14.43
EY1.86%
EPS(NY)17.58
Fwd EY2.26%
FCF(TTM)16.31
FCFY2.1%
OCF(TTM)20.21
OCFY2.6%
SpS52.89
BVpS47.19
TBVpS37.96
PEG (NY)2.39
PEG (5Y)1.62
Graham Number123.78
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
WACC11.05%
ROIC/WACC0.94
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 Y22.54%
EPS Next 2Y20.53%
EPS Next 3Y20.68%
EPS Next 5Y18.95%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.81%
Revenue Next Year19.88%
Revenue Next 2Y19.25%
Revenue Next 3Y19.18%
Revenue Next 5Y18.32%
EBIT growth 1Y39.29%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year48.73%
EBIT Next 3Y29.6%
EBIT Next 5Y24.29%
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 5 / 10 to 4S0.DE.
What is the valuation status for 4S0 stock?
ChartMill assigns a valuation rating of 2 / 10 to SERVICENOW INC (4S0.DE). This can be considered as Overvalued.
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.