SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4S0 - US81762P1021 - Common Stock
129.98 EUR
-2.64 (-1.99%)
We assign a fundamental rating of 6 out of 10 to 4S0. 4S0 was compared to 115 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 also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
4S0 had positive earnings in the past year.
In the past year 4S0 had a positive cash flow from operations.
Each year in the past 5 years 4S0 has been profitable.
In the past 5 years 4S0 always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 4S0 (7.94%) is better than 67.83% of its industry peers.
4S0 has a Return On Equity of 15.32%. This is in the better half of the industry: 4S0 outperforms 64.35% of its industry peers.
The Return On Invested Capital of 4S0 (10.34%) is better than 73.91% 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
4S0 has a Profit Margin of 13.67%. This is in the better half of the industry: 4S0 outperforms 62.61% of its industry peers.
In the last couple of years the Profit Margin of 4S0 has declined.
The Operating Margin of 4S0 (13.85%) is better than 66.09% of its industry peers.
4S0's Operating Margin has improved in the last couple of years.
4S0's Gross Margin of 78.05% is fine compared to the rest of the industry. 4S0 outperforms 64.35% 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
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
4S0 has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of 4S0 (0.38) is better than 87.83% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that 4S0 is not too dependend on debt financing.
The Debt to Equity ratio of 4S0 (0.13) is better than 71.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.96
WACC10.81%
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 66.96% 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 64.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
4S0 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.01%.
The Earnings Per Share has been growing by 33.14% on average over the past years. This is a very strong growth
4S0 shows a strong growth in Revenue. In the last year, 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)-29.01%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%-74.09%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.81%
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 18.48% yearly.
Based on estimates for the next years, 4S0 will show a quite strong growth in Revenue. The Revenue will grow by 18.38% on average per year.
EPS Next Y25.64%
EPS Next 2Y21.6%
EPS Next 3Y21%
EPS Next 5Y18.48%
Revenue Next Year20.53%
Revenue Next 2Y19.43%
Revenue Next 3Y19.11%
Revenue Next 5Y18.38%
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
With a Price/Earnings ratio of 16.09, 4S0 is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of 4S0 indicates a rather cheap valuation: 4S0 is cheaper than 86.09% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.61, 4S0 is valued a bit cheaper.
A Price/Forward Earnings ratio of 7.41 indicates a rather cheap valuation of 4S0.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 4S0 indicates a rather cheap valuation: 4S0 is cheaper than 92.17% of the companies listed in the same industry.
4S0 is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 7.41 |
4.2 Price Multiples
80.87% of the companies in the same industry are more expensive than 4S0, based on the Enterprise Value to EBITDA ratio.
93.91% of the companies in the same industry are more expensive than 4S0, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 10.56 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of 4S0 may justify a higher PE ratio.
4S0's earnings are expected to grow with 21.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)0.49
EPS Next 2Y21.6%
EPS Next 3Y21%
5. Dividend
5.1 Amount
4S0 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:4S0 (12/23/2025, 3:01:41 PM)
129.98
-2.64 (-1.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.72%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap26.97B
Revenue(TTM)12.67B
Net Income(TTM)1.73B
Analysts82.75
Price Target1006.21 (674.13%)
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)0
Avg EPS beat(2)-77.47%
Min EPS beat(2)-77.63%
Max EPS beat(2)-77.31%
EPS beat(4)1
Avg EPS beat(4)-37.9%
Min EPS beat(4)-77.63%
Max EPS beat(4)4.31%
EPS beat(8)5
Avg EPS beat(8)-14.73%
EPS beat(12)9
Avg EPS beat(12)-5.36%
EPS beat(16)13
Avg EPS beat(16)-3.31%
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)0.96%
PT rev (3m)0.69%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-1.67%
EPS NY rev (1m)0.67%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 7.41 | ||
| P/S | 2.5 | ||
| P/FCF | 8.11 | ||
| P/OCF | 6.54 | ||
| P/B | 2.8 | ||
| P/tB | 3.48 | ||
| EV/EBITDA | 10.56 |
EPS(TTM)8.08
EY6.22%
EPS(NY)17.54
Fwd EY13.49%
FCF(TTM)16.02
FCFY12.33%
OCF(TTM)19.87
OCFY15.28%
SpS51.98
BVpS46.38
TBVpS37.3
PEG (NY)0.63
PEG (5Y)0.49
Graham Number91.82
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
WACC10.81%
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)-29.01%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%-74.09%
EPS Next Y25.64%
EPS Next 2Y21.6%
EPS Next 3Y21%
EPS Next 5Y18.48%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.81%
Revenue Next Year20.53%
Revenue Next 2Y19.43%
Revenue Next 3Y19.11%
Revenue Next 5Y18.38%
EBIT growth 1Y39.29%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year50.54%
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 6 / 10 to 4S0.DE.
What is the valuation status for 4S0 stock?
ChartMill assigns a valuation rating of 9 / 10 to SERVICENOW INC (4S0.DE). This can be considered as Undervalued.
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.