SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4S0 - US81762P1021 - Common Stock
113.06 EUR
+5.16 (+4.78%)
4S0 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 119 industry peers in the Software industry. 4S0 scores excellent on profitability, but 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
- 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.
- 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 64.71% of the companies in the same industry.
- 4S0 has a better Return On Equity (15.32%) than 61.34% of its industry peers.
- 4S0's Return On Invested Capital of 10.34% is fine compared to the rest of the industry. 4S0 outperforms 72.27% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 4S0 is significantly below the industry average of 13.47%.
- 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 63.03% 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 67.23% 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 64.71% 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.
- 4S0 has more shares outstanding than it did 5 years ago.
- 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 86.55% 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 68.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.95
WACC10.85%
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.
- With a Current ratio value of 1.06, 4S0 is not doing good in the industry: 66.39% of the companies in the same industry are doing better.
- 4S0 has a Quick 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.
- The Quick ratio of 4S0 (1.06) is worse than 63.87% 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.
- 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)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
- 4S0 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.75% yearly.
- 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 2Y19.51%
Revenue Next 3Y19.21%
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 39.81, 4S0 can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of 4S0 is on the same level as its industry peers.
- 4S0's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 32.09, 4S0 can be considered very expensive at the moment.
- 4S0's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. 4S0 is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.81 | ||
| Fwd PE | 32.09 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 4S0 is valued cheaply inside the industry as 83.19% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 4S0 indicates a rather cheap valuation: 4S0 is cheaper than 95.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.03 | ||
| EV/EBITDA | 8.05 |
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)1.36
PEG (5Y)1.2
EPS Next 2Y21.68%
EPS Next 3Y20.96%
5. Dividend
5.1 Amount
- No dividends for 4S0!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 5 / 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.