SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - FRA:4S0 - US81762P1021 - Common Stock
706.3 EUR
-2.9 (-0.41%)
We assign a fundamental rating of 5 out of 10 to 4S0. 4S0 was compared to 107 industry peers in the Software industry. While 4S0 has a great profitability rating, there are some minor concerns on its financial health. 4S0 is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year 4S0 was profitable.
4S0 had a positive operating cash flow in the past year.
In the past 5 years 4S0 has always been profitable.
4S0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
4S0's Return On Assets of 7.94% is fine compared to the rest of the industry. 4S0 outperforms 69.16% of its industry peers.
Looking at the Return On Equity, with a value of 15.32%, 4S0 is in the better half of the industry, outperforming 66.36% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.34%, 4S0 is in the better half of the industry, outperforming 73.83% 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 13.52%.
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 better Profit Margin (13.67%) than 64.49% of its industry peers.
In the last couple of years the Profit Margin of 4S0 has declined.
4S0 has a Operating Margin of 13.85%. This is in the better half of the industry: 4S0 outperforms 67.29% 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 66.36% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for 4S0 has been reduced compared to a year ago.
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.
4S0 has a better Debt to FCF ratio (0.38) than 89.72% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that 4S0 is not too dependend on debt financing.
4S0 has a better Debt to Equity ratio (0.13) than 71.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.94
WACC11.02%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 4S0 should not have too much problems paying its short term obligations.
With a Current ratio value of 1.06, 4S0 is not doing good in the industry: 65.42% 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.
With a Quick ratio value of 1.06, 4S0 is not doing good in the industry: 62.62% of the companies in the same industry are doing better.
| 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.
4S0 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.14% yearly.
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
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.
4S0 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.38% yearly.
EPS Next Y24.81%
EPS Next 2Y21.26%
EPS Next 3Y20.87%
EPS Next 5Y18.48%
Revenue Next Year20.41%
Revenue Next 2Y19.43%
Revenue Next 3Y19.2%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
4S0 is valuated quite expensively with a Price/Earnings ratio of 49.22.
The rest of the industry has a similar Price/Earnings ratio as 4S0.
Compared to an average S&P500 Price/Earnings ratio of 25.47, 4S0 is valued quite expensively.
4S0 is valuated quite expensively with a Price/Forward Earnings ratio of 39.94.
4S0's Price/Forward Earnings is on the same level as the industry average.
4S0 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.22 | ||
| Fwd PE | 39.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 4S0 is valued a bit more expensive than the industry average as 67.29% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as 4S0.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.58 | ||
| EV/EBITDA | 67.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 4S0 may justify a higher PE ratio.
A more expensive valuation may be justified as 4S0's earnings are expected to grow with 20.87% in the coming years.
PEG (NY)1.98
PEG (5Y)1.49
EPS Next 2Y21.26%
EPS Next 3Y20.87%
5. Dividend
5.1 Amount
4S0 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:4S0 (11/19/2025, 7:00:00 PM)
706.3
-2.9 (-0.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.68%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap146.91B
Revenue(TTM)12.67B
Net Income(TTM)1.73B
Analysts83.53
Price Target996.65 (41.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0.13%
PT rev (3m)-1.04%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)1.82%
EPS NY rev (3m)3.95%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.22 | ||
| Fwd PE | 39.94 | ||
| P/S | 13.43 | ||
| P/FCF | 43.58 | ||
| P/OCF | 35.15 | ||
| P/B | 15.06 | ||
| P/tB | 18.72 | ||
| EV/EBITDA | 67.17 |
EPS(TTM)14.35
EY2.03%
EPS(NY)17.68
Fwd EY2.5%
FCF(TTM)16.21
FCFY2.29%
OCF(TTM)20.09
OCFY2.84%
SpS52.58
BVpS46.91
TBVpS37.73
PEG (NY)1.98
PEG (5Y)1.49
Graham Number123.07
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
WACC11.02%
ROIC/WACC0.94
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 Y24.81%
EPS Next 2Y21.26%
EPS Next 3Y20.87%
EPS Next 5Y18.48%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.81%
Revenue Next Year20.41%
Revenue Next 2Y19.43%
Revenue Next 3Y19.2%
Revenue Next 5Y18.38%
EBIT growth 1Y39.29%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year48.73%
EBIT Next 3Y29.6%
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.
What is the valuation status for 4S0 stock?
ChartMill assigns a valuation rating of 2 / 10 to SERVICENOW INC (4S0.DE). This can be considered as Overvalued.
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.