SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4S0 - US81762P1021 - Common Stock
125.32 EUR
-6.14 (-4.67%)
We assign a fundamental rating of 6 out of 10 to 4S0. 4S0 was compared to 105 industry peers in the Software industry. 4S0 scores excellent on profitability, but there are some minor concerns on its financial health. 4S0 is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
In the past 5 years 4S0 always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.94%, 4S0 is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Equity value of 15.32%, 4S0 is doing good in the industry, outperforming 62.86% of the companies in the same industry.
The Return On Invested Capital of 4S0 (10.34%) is better than 72.38% 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 13.20%.
The 3 year average ROIC (6.51%) for 4S0 is below the current ROIC(10.34%), indicating increased profibility in the last year.
| 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 63.81% of its industry peers.
4S0's Profit Margin has declined in the last couple of years.
4S0's Operating Margin of 13.85% is fine compared to the rest of the industry. 4S0 outperforms 64.76% of its industry peers.
4S0's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.05%, 4S0 is in the better half of the industry, outperforming 61.90% 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.
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.
Compared to 1 year ago, 4S0 has an improved debt to assets ratio.
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.
The Debt to FCF ratio of 4S0 (0.38) is better than 85.71% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that 4S0 is not too dependend on debt financing.
4S0's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. 4S0 outperforms 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.95
WACC10.87%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 4S0 should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, 4S0 is doing worse than 65.71% 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.
4S0's Quick ratio of 1.06 is on the low side compared to the rest of the industry. 4S0 is outperformed by 63.81% of its industry peers.
| 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.
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.
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
Based on estimates for the next years, 4S0 will show a very strong growth in Earnings Per Share. The EPS will grow by 63.46% on average per year.
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 Y29.2%
EPS Next 2Y21.68%
EPS Next 3Y20.96%
EPS Next 5Y63.46%
Revenue Next Year20.57%
Revenue Next 2Y19.49%
Revenue Next 3Y19.17%
Revenue Next 5Y18.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 44.28 indicates a quite expensive valuation of 4S0.
The rest of the industry has a similar Price/Earnings ratio as 4S0.
4S0's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 35.70, which means the current valuation is very expensive for 4S0.
The rest of the industry has a similar Price/Forward Earnings ratio as 4S0.
4S0's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.28 | ||
| Fwd PE | 35.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4S0 is valued cheaper than 80.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 4S0 is valued cheaply inside the industry as 92.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.82 | ||
| EV/EBITDA | 10.45 |
4.3 Compensation for Growth
4S0's 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)1.52
PEG (5Y)1.34
EPS Next 2Y21.68%
EPS Next 3Y20.96%
5. Dividend
5.1 Amount
4S0 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:4S0 (1/2/2026, 7:00:00 PM)
125.32
-6.14 (-4.67%)
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 Cap26.00B
Revenue(TTM)12.67B
Net Income(TTM)1.73B
Analysts82.75
Price Target198.37 (58.29%)
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)-80.81%
PT rev (3m)-80.15%
EPS NQ rev (1m)-80%
EPS NQ rev (3m)-80.34%
EPS NY rev (1m)-79.3%
EPS NY rev (3m)-78.92%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.28 | ||
| Fwd PE | 35.7 | ||
| P/S | 2.41 | ||
| P/FCF | 7.82 | ||
| P/OCF | 6.31 | ||
| P/B | 2.7 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | 10.45 |
EPS(TTM)2.83
EY2.26%
EPS(NY)3.51
Fwd EY2.8%
FCF(TTM)16.02
FCFY12.78%
OCF(TTM)19.86
OCFY15.85%
SpS51.96
BVpS46.36
TBVpS37.29
PEG (NY)1.52
PEG (5Y)1.34
Graham Number54.33
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
WACC10.87%
ROIC/WACC0.95
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 5Y63.46%
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 6 / 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.