SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4S0 - US81762P1021 - Common Stock
116.62 EUR
-2.96 (-2.48%)
4S0 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Software industry. 4S0 has an excellent profitability rating, but there are some minor concerns on its financial health. 4S0 is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
- Each year in the past 5 years 4S0 has been profitable.
- 4S0 had a positive operating cash flow in each of the past 5 years.
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 68.00% of the companies in the same industry.
- 4S0 has a better Return On Equity (15.32%) than 64.80% 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 75.20% 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 12.89%.
- 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
- With a decent Profit Margin value of 13.67%, 4S0 is doing good in the industry, outperforming 64.80% 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 13.85% is fine compared to the rest of the industry. 4S0 outperforms 69.60% of its industry peers.
- In the last couple of years the Operating Margin of 4S0 has grown nicely.
- With a decent Gross Margin value of 78.05%, 4S0 is doing good in the industry, outperforming 64.80% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 4S0 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
- 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.
- 4S0 has a better Debt to FCF ratio (0.38) than 86.40% of its industry peers.
- A Debt/Equity ratio of 0.13 indicates that 4S0 is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.13, 4S0 is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.96
WACC10.79%
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.
- Looking at the Current ratio, with a value of 1.06, 4S0 is doing worse than 66.40% of the companies in the same industry.
- A Quick Ratio of 1.06 indicates that 4S0 should not have too much problems paying its short term obligations.
- The Quick ratio of 4S0 (1.06) is worse than 64.00% of its industry peers.
| 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.
- Looking at the last year, 4S0 shows a very strong growth in Revenue. The Revenue has grown by 21.05%.
- 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 18.75% on average over the next years. This is quite good.
- The Revenue is expected to grow by 18.38% on average over the next years. This is quite good.
EPS Next Y29.2%
EPS Next 2Y21.68%
EPS Next 3Y20.96%
EPS Next 5Y18.75%
Revenue Next Year20.57%
Revenue Next 2Y19.49%
Revenue Next 3Y19.17%
Revenue Next 5Y18.38%
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.
- 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
- A Price/Earnings ratio of 40.92 indicates a quite expensive valuation of 4S0.
- Compared to the rest of the industry, the Price/Earnings ratio of 4S0 is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.33. 4S0 is valued slightly more expensive when compared to this.
- A Price/Forward Earnings ratio of 32.95 indicates a quite expensive valuation of 4S0.
- The rest of the industry has a similar Price/Forward Earnings ratio as 4S0.
- When comparing the Price/Forward Earnings ratio of 4S0 to the average of the S&P500 Index (24.12), we can say 4S0 is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.92 | ||
| Fwd PE | 32.95 |
4.2 Price Multiples
- 4S0's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 4S0 is cheaper than 81.60% of the companies in the same industry.
- 4S0's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 4S0 is cheaper than 94.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.22 | ||
| EV/EBITDA | 9.16 |
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)1.4
PEG (5Y)1.23
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 (1/14/2026, 4:57:06 PM)
116.62
-2.96 (-2.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners90.36%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap24.20B
Revenue(TTM)12.67B
Net Income(TTM)1.73B
Analysts83.53
Price Target198.37 (70.1%)
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)-80.29%
PT rev (3m)-80.07%
EPS NQ rev (1m)-80%
EPS NQ rev (3m)-80.34%
EPS NY rev (1m)-79.43%
EPS NY rev (3m)-78.92%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.92 | ||
| Fwd PE | 32.95 | ||
| P/S | 2.23 | ||
| P/FCF | 7.22 | ||
| P/OCF | 5.82 | ||
| P/B | 2.5 | ||
| P/tB | 3.1 | ||
| EV/EBITDA | 9.16 |
EPS(TTM)2.85
EY2.44%
EPS(NY)3.54
Fwd EY3.04%
FCF(TTM)16.15
FCFY13.85%
OCF(TTM)20.02
OCFY17.17%
SpS52.39
BVpS46.74
TBVpS37.59
PEG (NY)1.4
PEG (5Y)1.23
Graham Number54.75
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 5Y18.75%
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 5 / 10 to 4S0.DE.
Can you provide the valuation status for SERVICENOW INC?
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 expected EPS growth for SERVICENOW INC (4S0.DE) stock?
The Earnings per Share (EPS) of SERVICENOW INC (4S0.DE) is expected to grow by 29.2% in the next year.