SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
FRA:4S0 - Deutsche Boerse Ag - US81762P1021 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 4S0. 4S0 was compared to 95 industry peers in the Software industry. 4S0 has an excellent profitability rating, but there are some minor concerns on its financial health. 4S0 shows excellent growth, but is valued quite expensive already. With these ratings, 4S0 could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year 4S0 was profitable.
4S0 had a positive operating cash flow in the past year.
In the past 5 years 4S0 has always been profitable.
In the past 5 years 4S0 always reported a positive cash flow from operatings.
1.2 Ratios
4S0 has a better Return On Assets (7.33%) than 72.63% of its industry peers.
With a decent Return On Equity value of 15.17%, 4S0 is doing good in the industry, outperforming 74.74% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.56%, 4S0 is doing good in the industry, outperforming 76.84% 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 below the industry average of 11.01%.
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
Looking at the Profit Margin, with a value of 13.41%, 4S0 is in the better half of the industry, outperforming 67.37% of the companies in the same industry.
In the last couple of years the Profit Margin of 4S0 has declined.
4S0's Operating Margin of 12.93% is fine compared to the rest of the industry. 4S0 outperforms 70.53% of its industry peers.
4S0's Operating Margin has improved in the last couple of years.
4S0 has a Gross Margin of 78.92%. This is in the better half of the industry: 4S0 outperforms 70.53% of its industry peers.
4S0's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, 4S0 has more shares outstanding
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 12.05. This indicates that 4S0 is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 4S0 (12.05) is better than 94.74% of its industry peers.
4S0 has a debt to FCF ratio of 0.41. This is a very positive value and a sign of high solvency as it would only need 0.41 years to pay back of all of its debts.
The Debt to FCF ratio of 4S0 (0.41) is better than 86.32% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that 4S0 is not too dependend on debt financing.
The Debt to Equity ratio of 4S0 (0.15) is better than 67.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 12.05 |
ROIC/WACC0.91
WACC10.51%
2.3 Liquidity
4S0 has a Current Ratio of 1.12. 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 1.12 is in line compared to the rest of the industry. 4S0 outperforms 41.05% of its industry peers.
4S0 has a Quick Ratio of 1.12. This is a normal value and indicates that 4S0 is financially healthy and should not expect problems in meeting its short term obligations.
4S0 has a Quick ratio of 1.12. This is comparable to the rest of the industry: 4S0 outperforms 43.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
4S0 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.29%, 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.
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
4S0 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.77% yearly.
Based on estimates for the next years, 4S0 will show a quite strong growth in Revenue. The Revenue will grow by 19.47% on average per year.
EPS Next Y18.72%
EPS Next 2Y19.86%
EPS Next 3Y20.68%
EPS Next 5Y18.77%
Revenue Next Year18.64%
Revenue Next 2Y18.98%
Revenue Next 3Y19.22%
Revenue Next 5Y19.47%
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.
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
A Price/Earnings ratio of 65.59 indicates a quite expensive valuation of 4S0.
4S0's Price/Earnings ratio is in line with the industry average.
4S0's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.78.
The Price/Forward Earnings ratio is 47.72, which means the current valuation is very expensive for 4S0.
The rest of the industry has a similar Price/Forward Earnings ratio as 4S0.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, 4S0 is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.59 | ||
| Fwd PE | 47.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4S0 is valued a bit more expensive than 61.05% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 4S0 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.49 | ||
| EV/EBITDA | 91.17 |
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 20.68% in the coming years.
PEG (NY)3.5
PEG (5Y)1.98
EPS Next 2Y19.86%
EPS Next 3Y20.68%
5. Dividend
5.1 Amount
No dividends for 4S0!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:4S0 (4/25/2025, 7:00:00 PM)
840.9
+18.8 (+2.29%)
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 Cap174.07B
Analysts82
Price Target910.54 (8.28%)
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)1.65%
Min EPS beat(2)-0.99%
Max EPS beat(2)4.29%
EPS beat(4)3
Avg EPS beat(4)4.74%
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)-19.65%
PT rev (3m)-13.68%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-1.9%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.59 | ||
| Fwd PE | 47.72 | ||
| P/S | 17.24 | ||
| P/FCF | 54.49 | ||
| P/OCF | 42.95 | ||
| P/B | 19.5 | ||
| P/tB | 22.98 | ||
| EV/EBITDA | 91.17 |
EPS(TTM)12.82
EY1.52%
EPS(NY)17.62
Fwd EY2.1%
FCF(TTM)15.43
FCFY1.84%
OCF(TTM)19.58
OCFY2.33%
SpS48.79
BVpS43.13
TBVpS36.6
PEG (NY)3.5
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 | 12.05 |
F-Score8
WACC10.51%
ROIC/WACC0.91
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 Y18.72%
EPS Next 2Y19.86%
EPS Next 3Y20.68%
EPS Next 5Y18.77%
Revenue 1Y (TTM)21.01%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%18.63%
Revenue Next Year18.64%
Revenue Next 2Y18.98%
Revenue Next 3Y19.22%
Revenue Next 5Y19.47%
EBIT growth 1Y56.11%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year46.45%
EBIT Next 3Y30.44%
EBIT Next 5Y26.41%
FCF growth 1Y69.53%
FCF growth 3Y23.49%
FCF growth 5Y30.31%
OCF growth 1Y66.65%
OCF growth 3Y24.88%
OCF growth 5Y28.12%