SERVICENOW INC (NOW) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:NOW • US81762P1021

100.74 USD
-1.89 (-1.84%)
At close: Feb 6, 2026
101.392 USD
+0.65 (+0.65%)
After Hours: 2/6/2026, 8:04:00 PM
Fundamental Rating

6

Taking everything into account, NOW scores 6 out of 10 in our fundamental rating. NOW was compared to 278 industry peers in the Software industry. While NOW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NOW is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year NOW was profitable.
  • NOW had a positive operating cash flow in the past year.
  • Each year in the past 5 years NOW has been profitable.
  • In the past 5 years NOW always reported a positive cash flow from operatings.
NOW Yearly Net Income VS EBIT VS OCF VS FCFNOW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B 5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.71%, NOW is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
  • NOW's Return On Equity of 13.48% is fine compared to the rest of the industry. NOW outperforms 78.78% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 9.33%, NOW belongs to the top of the industry, outperforming 82.73% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for NOW is below the industry average of 10.78%.
  • The last Return On Invested Capital (9.33%) for NOW is above the 3 year average (8.15%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.71%
ROE 13.48%
ROIC 9.33%
ROA(3y)7.89%
ROA(5y)5.65%
ROE(3y)17%
ROE(5y)12.74%
ROIC(3y)8.15%
ROIC(5y)6.36%
NOW Yearly ROA, ROE, ROICNOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40 -60 -80 -100

1.3 Margins

  • Looking at the Profit Margin, with a value of 13.16%, NOW is in the better half of the industry, outperforming 74.82% of the companies in the same industry.
  • NOW's Profit Margin has improved in the last couple of years.
  • The Operating Margin of NOW (13.76%) is better than 80.22% of its industry peers.
  • In the last couple of years the Operating Margin of NOW has grown nicely.
  • NOW's Gross Margin of 77.56% is fine compared to the rest of the industry. NOW outperforms 74.10% of its industry peers.
  • NOW's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.76%
PM (TTM) 13.16%
GM 77.56%
OM growth 3Y41.21%
OM growth 5Y25.68%
PM growth 3Y43.17%
PM growth 5Y38.09%
GM growth 3Y-0.3%
GM growth 5Y-0.14%
NOW Yearly Profit, Operating, Gross MarginsNOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • NOW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for NOW remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for NOW has been increased compared to 5 years ago.
  • Compared to 1 year ago, NOW has an improved debt to assets ratio.
NOW Yearly Shares OutstandingNOW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
NOW Yearly Total Debt VS Total AssetsNOW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • NOW has a debt to FCF ratio of 0.33. This is a very positive value and a sign of high solvency as it would only need 0.33 years to pay back of all of its debts.
  • The Debt to FCF ratio of NOW (0.33) is better than 79.50% of its industry peers.
  • A Debt/Equity ratio of 0.12 indicates that NOW is not too dependend on debt financing.
  • NOW has a Debt to Equity ratio (0.12) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.33
Altman-Z N/A
ROIC/WACC0.86
WACC10.9%
NOW Yearly LT Debt VS Equity VS FCFNOW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.00 indicates that NOW should not have too much problems paying its short term obligations.
  • NOW's Current ratio of 1.00 is on the low side compared to the rest of the industry. NOW is outperformed by 74.10% of its industry peers.
  • NOW has a Quick Ratio of 1.00. This is a normal value and indicates that NOW is financially healthy and should not expect problems in meeting its short term obligations.
  • NOW's Quick ratio of 1.00 is on the low side compared to the rest of the industry. NOW is outperformed by 72.66% of its industry peers.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 1
NOW Yearly Current Assets VS Current LiabilitesNOW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. Growth

3.1 Past

  • NOW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.99%, which is quite impressive.
  • NOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.37% yearly.
  • NOW shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.88%.
  • The Revenue has been growing by 24.05% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)25.99%
EPS 3Y32.23%
EPS 5Y30.37%
EPS Q2Q%25.34%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y22.38%
Revenue growth 5Y24.05%
Sales Q2Q%20.66%

3.2 Future

  • Based on estimates for the next years, NOW will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.42% on average per year.
  • Based on estimates for the next years, NOW will show a quite strong growth in Revenue. The Revenue will grow by 17.38% on average per year.
EPS Next Y19.44%
EPS Next 2Y25.87%
EPS Next 3Y20.67%
EPS Next 5Y16.42%
Revenue Next Year20.41%
Revenue Next 2Y19.44%
Revenue Next 3Y19.21%
Revenue Next 5Y17.38%

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.
NOW Yearly Revenue VS EstimatesNOW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
NOW Yearly EPS VS EstimatesNOW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 28.70 indicates a quite expensive valuation of NOW.
  • NOW's Price/Earnings ratio is in line with the industry average.
  • NOW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.92.
  • The Price/Forward Earnings ratio is 24.03, which indicates a rather expensive current valuation of NOW.
  • NOW's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of NOW to the average of the S&P500 Index (27.78), we can say NOW is valued inline with the index average.
Industry RankSector Rank
PE 28.7
Fwd PE 24.03
NOW Price Earnings VS Forward Price EarningsNOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NOW is valued cheaply inside the industry as 93.88% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, NOW is valued cheaper than 97.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.61
EV/EBITDA 5.44
NOW Per share dataNOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • NOW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • NOW has an outstanding profitability rating, which may justify a higher PE ratio.
  • NOW's earnings are expected to grow with 20.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)0.95
EPS Next 2Y25.87%
EPS Next 3Y20.67%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • NOW does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

SERVICENOW INC

NYSE:NOW (2/6/2026, 8:04:00 PM)

After market: 101.392 +0.65 (+0.65%)

100.74

-1.89 (-1.84%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners90.36%
Inst Owner Change70.91%
Ins Owners0.11%
Ins Owner Change1.37%
Market Cap20.90B
Revenue(TTM)13.28B
Net Income(TTM)1.75B
Analysts83.53
Price Target199.14 (97.68%)
Short Float %N/A
Short Ratio2.08
Dividend
Industry RankSector 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)7.51%
Min EPS beat(2)3.17%
Max EPS beat(2)11.85%
EPS beat(4)4
Avg EPS beat(4)8.19%
Min EPS beat(4)3.17%
Max EPS beat(4)13.44%
EPS beat(8)7
Avg EPS beat(8)6.88%
EPS beat(12)11
Avg EPS beat(12)8.95%
EPS beat(16)15
Avg EPS beat(16)8.07%
Revenue beat(2)2
Avg Revenue beat(2)0.39%
Min Revenue beat(2)0.17%
Max Revenue beat(2)0.62%
Revenue beat(4)3
Avg Revenue beat(4)0.48%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)2%
Revenue beat(8)4
Avg Revenue beat(8)0.16%
Revenue beat(12)6
Avg Revenue beat(12)0.11%
Revenue beat(16)7
Avg Revenue beat(16)-0.13%
PT rev (1m)-3.51%
PT rev (3m)-81.04%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-79.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-79.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.57%
Valuation
Industry RankSector Rank
PE 28.7
Fwd PE 24.03
P/S 1.57
P/FCF 4.61
P/OCF 3.84
P/B 1.61
P/tB 2.53
EV/EBITDA 5.44
EPS(TTM)3.51
EY3.48%
EPS(NY)4.19
Fwd EY4.16%
FCF(TTM)21.85
FCFY21.69%
OCF(TTM)26.24
OCFY26.05%
SpS64
BVpS62.48
TBVpS39.84
PEG (NY)1.48
PEG (5Y)0.95
Graham Number70.25
Profitability
Industry RankSector Rank
ROA 6.71%
ROE 13.48%
ROCE 11.72%
ROIC 9.33%
ROICexc 15.63%
ROICexgc 31.55%
OM 13.76%
PM (TTM) 13.16%
GM 77.56%
FCFM 34.14%
ROA(3y)7.89%
ROA(5y)5.65%
ROE(3y)17%
ROE(5y)12.74%
ROIC(3y)8.15%
ROIC(5y)6.36%
ROICexc(3y)14.94%
ROICexc(5y)12.45%
ROICexgc(3y)23.6%
ROICexgc(5y)19.82%
ROCE(3y)10.23%
ROCE(5y)7.99%
ROICexgc growth 3Y29.88%
ROICexgc growth 5Y24.4%
ROICexc growth 3Y18.65%
ROICexc growth 5Y13.29%
OM growth 3Y41.21%
OM growth 5Y25.68%
PM growth 3Y43.17%
PM growth 5Y38.09%
GM growth 3Y-0.3%
GM growth 5Y-0.14%
F-Score5
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.33
Debt/EBITDA 0.58
Cap/Depr 123.44%
Cap/Sales 6.86%
Interest Coverage 250
Cash Conversion 212.24%
Profit Quality 259.33%
Current Ratio 1
Quick Ratio 1
Altman-Z N/A
F-Score5
WACC10.9%
ROIC/WACC0.86
Cap/Depr(3y)135.03%
Cap/Depr(5y)123.33%
Cap/Sales(3y)7.57%
Cap/Sales(5y)7.42%
Profit Quality(3y)217.46%
Profit Quality(5y)420.03%
High Growth Momentum
Growth
EPS 1Y (TTM)25.99%
EPS 3Y32.23%
EPS 5Y30.37%
EPS Q2Q%25.34%
EPS Next Y19.44%
EPS Next 2Y25.87%
EPS Next 3Y20.67%
EPS Next 5Y16.42%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y22.38%
Revenue growth 5Y24.05%
Sales Q2Q%20.66%
Revenue Next Year20.41%
Revenue Next 2Y19.44%
Revenue Next 3Y19.21%
Revenue Next 5Y17.38%
EBIT growth 1Y33.94%
EBIT growth 3Y72.81%
EBIT growth 5Y55.91%
EBIT Next Year39.14%
EBIT Next 3Y22.86%
EBIT Next 5Y22.21%
FCF growth 1Y34.31%
FCF growth 3Y27.77%
FCF growth 5Y27.34%
OCF growth 1Y27.58%
OCF growth 3Y25.98%
OCF growth 5Y24.96%

SERVICENOW INC / NOW FAQ

What is the ChartMill fundamental rating of SERVICENOW INC (NOW) stock?

ChartMill assigns a fundamental rating of 6 / 10 to NOW.


What is the valuation status of SERVICENOW INC (NOW) stock?

ChartMill assigns a valuation rating of 5 / 10 to SERVICENOW INC (NOW). This can be considered as Fairly Valued.


How profitable is SERVICENOW INC (NOW) stock?

SERVICENOW INC (NOW) has a profitability rating of 8 / 10.


How financially healthy is SERVICENOW INC?

The financial health rating of SERVICENOW INC (NOW) is 4 / 10.


What is the expected EPS growth for SERVICENOW INC (NOW) stock?

The Earnings per Share (EPS) of SERVICENOW INC (NOW) is expected to grow by 19.44% in the next year.