SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4S0 - US81762P1021 - Common Stock
121.74 EUR
-1 (-0.81%)
4S0 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Software industry. While 4S0 has a great profitability rating, 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
In the past year 4S0 was profitable.
In the past year 4S0 had a positive cash flow from operations.
4S0 had positive earnings in each of the past 5 years.
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 68.00% of the companies in the same industry.
The Return On Equity of 4S0 (15.32%) is better than 64.80% of its industry peers.
The Return On Invested Capital of 4S0 (10.34%) is better than 75.20% of its industry peers.
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
Looking at the Profit Margin, with a value of 13.67%, 4S0 is in the better half of 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 has a better Operating Margin (13.85%) than 69.60% of its industry peers.
In the last couple of years the Operating Margin of 4S0 has grown nicely.
Looking at the Gross Margin, with a value of 78.05%, 4S0 is in the better half of the industry, outperforming 64.80% of the companies in the same industry.
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.
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.
Looking at the Debt to FCF ratio, with a value of 0.38, 4S0 belongs to the top of the industry, outperforming 86.40% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that 4S0 is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.13, 4S0 is doing good in 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
A Current Ratio of 1.06 indicates that 4S0 should not have too much problems paying its short term obligations.
4S0 has a worse Current ratio (1.06) than 66.40% of its industry peers.
A Quick Ratio of 1.06 indicates that 4S0 should not have too much problems paying its short term obligations.
4S0's Quick ratio of 1.06 is on the low side compared to the rest of the industry. 4S0 is outperformed by 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.
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 21.05%.
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
Based on estimates for the next years, 4S0 will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.75% on average per year.
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
With a Price/Earnings ratio of 42.57, 4S0 can be considered very expensive at the moment.
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 27.19.
4S0 is valuated quite expensively with a Price/Forward Earnings ratio of 34.36.
4S0's Price/Forward Earnings is on the same level as the industry average.
4S0 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.57 | ||
| Fwd PE | 34.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4S0 is valued 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 | 7.53 | ||
| EV/EBITDA | 9.46 |
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.
A more expensive valuation may be justified as 4S0's earnings are expected to grow with 20.96% in the coming years.
PEG (NY)1.46
PEG (5Y)1.28
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 (1/12/2026, 4:45:38 PM)
121.74
-1 (-0.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.36%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap25.26B
Revenue(TTM)12.67B
Net Income(TTM)1.73B
Analysts83.53
Price Target198.37 (62.95%)
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 | 42.57 | ||
| Fwd PE | 34.36 | ||
| P/S | 2.32 | ||
| P/FCF | 7.53 | ||
| P/OCF | 6.07 | ||
| P/B | 2.6 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 9.46 |
EPS(TTM)2.86
EY2.35%
EPS(NY)3.54
Fwd EY2.91%
FCF(TTM)16.17
FCFY13.28%
OCF(TTM)20.04
OCFY16.46%
SpS52.44
BVpS46.79
TBVpS37.63
PEG (NY)1.46
PEG (5Y)1.28
Graham Number54.87
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.