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SERVICENOW INC (4S0.DE) Stock Fundamental Analysis

Europe - FRA:4S0 - US81762P1021 - Common Stock

811.5 EUR
+20.6 (+2.6%)
Last: 9/18/2025, 4:32:11 PM
Fundamental Rating

5

4S0 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 103 industry peers in the Software industry. 4S0 has an excellent profitability rating, but there are some minor concerns on its financial health. 4S0 is valued quite expensive, but it does show an excellent growth. These ratings would make 4S0 suitable for growth investing!


Dividend Valuation Growth Profitability Health

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7

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.
In the past 5 years 4S0 has always been profitable.
In the past 5 years 4S0 always reported a positive cash flow from operatings.
4S0.DE Yearly Net Income VS EBIT VS OCF VS FCF4S0.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

1.2 Ratios

4S0 has a Return On Assets of 7.53%. This is in the better half of the industry: 4S0 outperforms 73.79% of its industry peers.
Looking at the Return On Equity, with a value of 15.19%, 4S0 is in the better half of the industry, outperforming 70.87% of the companies in the same industry.
4S0's Return On Invested Capital of 9.68% is fine compared to the rest of the industry. 4S0 outperforms 74.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 4S0 is significantly below the industry average of 12.80%.
The last Return On Invested Capital (9.68%) for 4S0 is above the 3 year average (6.51%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.53%
ROE 15.19%
ROIC 9.68%
ROA(3y)6.46%
ROA(5y)4.58%
ROE(3y)14.66%
ROE(5y)10.88%
ROIC(3y)6.51%
ROIC(5y)5.28%
4S0.DE Yearly ROA, ROE, ROIC4S0.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60 -80 -100

1.3 Margins

Looking at the Profit Margin, with a value of 13.78%, 4S0 is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
In the last couple of years the Profit Margin of 4S0 has declined.
The Operating Margin of 4S0 (13.28%) is better than 64.08% of its industry peers.
4S0's Operating Margin has improved in the last couple of years.
The Gross Margin of 4S0 (78.52%) is better than 64.08% of its industry peers.
4S0's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.28%
PM (TTM) 13.78%
GM 78.52%
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%
4S0.DE Yearly Profit, Operating, Gross Margins4S0.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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5

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
Compared to 1 year ago, 4S0 has an improved debt to assets ratio.
4S0.DE Yearly Shares Outstanding4S0.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
4S0.DE Yearly Total Debt VS Total Assets4S0.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

4S0 has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.39, 4S0 belongs to the top of the industry, outperforming 89.32% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that 4S0 is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.14, 4S0 is doing good in the industry, outperforming 73.79% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 0.39
Altman-Z N/A
ROIC/WACC0.88
WACC10.96%
4S0.DE Yearly LT Debt VS Equity VS FCF4S0.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.3 Liquidity

4S0 has a Current Ratio of 1.09. This is a normal value and indicates that 4S0 is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 4S0 (1.09) is comparable to the rest of the industry.
4S0 has a Quick Ratio of 1.09. This is a normal value and indicates that 4S0 is financially healthy and should not expect problems in meeting its short term obligations.
4S0 has a Quick ratio (1.09) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09
4S0.DE Yearly Current Assets VS Current Liabilites4S0.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 23.47% 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.
4S0 shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.12%.
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)23.47%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%30.67%
Revenue 1Y (TTM)21.12%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%22.38%

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 18.95% yearly.
Based on estimates for the next years, 4S0 will show a quite strong growth in Revenue. The Revenue will grow by 18.32% on average per year.
EPS Next Y22.57%
EPS Next 2Y20.54%
EPS Next 3Y20.65%
EPS Next 5Y18.95%
Revenue Next Year19.88%
Revenue Next 2Y19.24%
Revenue Next 3Y19.12%
Revenue Next 5Y18.32%

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.
4S0.DE Yearly Revenue VS Estimates4S0.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B
4S0.DE Yearly EPS VS Estimates4S0.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 10 20 30 40 50

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 61.90, which means the current valuation is very expensive for 4S0.
4S0's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.20. 4S0 is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 47.46, 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 is valuated expensively when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 61.9
Fwd PE 47.46
4S0.DE Price Earnings VS Forward Price Earnings4S0.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

65.05% of the companies in the same industry are cheaper than 4S0, based on the Enterprise Value to EBITDA ratio.
4S0's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 52.51
EV/EBITDA 83.85
4S0.DE Per share data4S0.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
4S0 has a very decent profitability rating, which may justify a higher PE ratio.
4S0's earnings are expected to grow with 20.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.74
PEG (5Y)1.87
EPS Next 2Y20.54%
EPS Next 3Y20.65%

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0

5. Dividend

5.1 Amount

4S0 does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SERVICENOW INC

FRA:4S0 (9/18/2025, 4:32:11 PM)

811.5

+20.6 (+2.6%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)07-23 2025-07-23/amc
Earnings (Next)10-21 2025-10-21/amc
Inst Owners91.17%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap168.79B
Analysts83.14
Price Target999.27 (23.14%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)8.88%
Min EPS beat(2)4.31%
Max EPS beat(2)13.44%
EPS beat(4)3
Avg EPS beat(4)5.83%
Min EPS beat(4)-0.99%
Max EPS beat(4)13.44%
EPS beat(8)7
Avg EPS beat(8)7.91%
EPS beat(12)11
Avg EPS beat(12)9.1%
EPS beat(16)15
Avg EPS beat(16)7.89%
Revenue beat(2)1
Avg Revenue beat(2)0.57%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)2%
Revenue beat(4)2
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)2%
Revenue beat(8)3
Avg Revenue beat(8)0.11%
Revenue beat(12)4
Avg Revenue beat(12)-0.18%
Revenue beat(16)6
Avg Revenue beat(16)-0.09%
PT rev (1m)-0.78%
PT rev (3m)2.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)2.09%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)1.06%
Valuation
Industry RankSector Rank
PE 61.9
Fwd PE 47.46
P/S 16.57
P/FCF 52.51
P/OCF 42.52
P/B 18.28
P/tB 22.61
EV/EBITDA 83.85
EPS(TTM)13.11
EY1.62%
EPS(NY)17.1
Fwd EY2.11%
FCF(TTM)15.45
FCFY1.9%
OCF(TTM)19.09
OCFY2.35%
SpS48.97
BVpS44.4
TBVpS35.88
PEG (NY)2.74
PEG (5Y)1.87
Profitability
Industry RankSector Rank
ROA 7.53%
ROE 15.19%
ROCE 11.81%
ROIC 9.68%
ROICexc 17.68%
ROICexgc 24.64%
OM 13.28%
PM (TTM) 13.78%
GM 78.52%
FCFM 31.56%
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%
ROICexcg growth 3Y18.02%
ROICexcg 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 Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 0.39
Debt/EBITDA 0.67
Cap/Depr 141.91%
Cap/Sales 7.41%
Interest Coverage 250
Cash Conversion 210.62%
Profit Quality 229.08%
Current Ratio 1.09
Quick Ratio 1.09
Altman-Z N/A
F-Score7
WACC10.96%
ROIC/WACC0.88
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)23.47%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%30.67%
EPS Next Y22.57%
EPS Next 2Y20.54%
EPS Next 3Y20.65%
EPS Next 5Y18.95%
Revenue 1Y (TTM)21.12%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%22.38%
Revenue Next Year19.88%
Revenue Next 2Y19.24%
Revenue Next 3Y19.12%
Revenue Next 5Y18.32%
EBIT growth 1Y49.21%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year46.77%
EBIT Next 3Y29.6%
EBIT Next 5Y24.29%
FCF growth 1Y65%
FCF growth 3Y23.49%
FCF growth 5Y30.31%
OCF growth 1Y61.53%
OCF growth 3Y24.88%
OCF growth 5Y28.12%