SERVICENOW INC (4S0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4S0 - US81762P1021 - Common Stock
119.66 EUR
-2.84 (-2.32%)
Taking everything into account, 4S0 scores 5 out of 10 in our fundamental rating. 4S0 was compared to 125 industry peers in the Software industry. 4S0 has an excellent profitability rating, 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.
In the past year 4S0 had a positive cash flow from operations.
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 has a Return On Assets of 7.94%. This is in the better half of the industry: 4S0 outperforms 68.00% of its industry peers.
4S0 has a better Return On Equity (15.32%) than 64.80% of its industry peers.
With a decent Return On Invested Capital value of 10.34%, 4S0 is doing good in the industry, outperforming 75.20% 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 12.89%.
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
The Profit Margin of 4S0 (13.67%) is better than 64.80% of its industry peers.
In the last couple of years the Profit Margin of 4S0 has declined.
With a decent Operating Margin value of 13.85%, 4S0 is doing good in the industry, outperforming 69.60% of the companies in the same industry.
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 64.80% 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.
4S0 has more shares outstanding than it did 1 year ago.
4S0 has more shares outstanding than it did 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 86.40% of its industry peers.
4S0 has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
4S0's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. 4S0 outperforms 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.96
WACC10.8%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 4S0 should not have too much problems paying its short term obligations.
The Current ratio of 4S0 (1.06) is worse than 66.40% of its industry peers.
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.
4S0 has a worse Quick ratio (1.06) than 64.00% 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.
Looking at the last year, 4S0 shows a very strong growth in Revenue. The Revenue has grown by 21.05%.
4S0 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.99% yearly.
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 quite strong growth in Earnings Per Share. The EPS will grow by 18.75% 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 5Y18.75%
Revenue Next Year20.57%
Revenue Next 2Y19.49%
Revenue Next 3Y19.17%
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
Based on the Price/Earnings ratio of 42.13, the valuation of 4S0 can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 4S0 is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.25, 4S0 is valued quite expensively.
A Price/Forward Earnings ratio of 33.92 indicates a quite expensive valuation of 4S0.
The rest of the industry has a similar Price/Forward Earnings ratio as 4S0.
The average S&P500 Price/Forward Earnings ratio is at 23.98. 4S0 is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.13 | ||
| Fwd PE | 33.92 |
4.2 Price Multiples
4S0's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 4S0 is cheaper than 81.60% of the companies in the same industry.
94.40% 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 | 7.43 | ||
| EV/EBITDA | 9.49 |
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)1.44
PEG (5Y)1.27
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 (1/13/2026, 5:20:00 PM)
119.66
-2.84 (-2.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.36%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap24.83B
Revenue(TTM)12.67B
Net Income(TTM)1.73B
Analysts83.53
Price Target198.37 (65.78%)
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)-80.29%
PT rev (3m)-80.07%
EPS NQ rev (1m)-80%
EPS NQ rev (3m)-80.34%
EPS NY rev (1m)-79.43%
EPS NY rev (3m)-78.92%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.13 | ||
| Fwd PE | 33.92 | ||
| P/S | 2.29 | ||
| P/FCF | 7.43 | ||
| P/OCF | 6 | ||
| P/B | 2.57 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 9.49 |
EPS(TTM)2.84
EY2.37%
EPS(NY)3.53
Fwd EY2.95%
FCF(TTM)16.1
FCFY13.45%
OCF(TTM)19.96
OCFY16.68%
SpS52.22
BVpS46.59
TBVpS37.47
PEG (NY)1.44
PEG (5Y)1.27
Graham Number54.56
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
WACC10.8%
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)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 5Y18.75%
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 5 / 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.