SERVICENOW INC (NOW) Stock Fundamental Analysis

NYSE:NOW • US81762P1021

103.48 USD
+2.68 (+2.66%)
Last: Feb 24, 2026, 12:03 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall NOW gets a fundamental rating of 5 out of 10. We evaluated NOW against 274 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 not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • NOW had positive earnings in the past year.
  • In the past year NOW had a positive cash flow from operations.
  • In the past 5 years NOW has always 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

  • NOW's Return On Assets of 6.71% is fine compared to the rest of the industry. NOW outperforms 75.55% of its industry peers.
  • NOW has a better Return On Equity (13.48%) than 78.10% of its industry peers.
  • The Return On Invested Capital of NOW (9.33%) is better than 82.48% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NOW is below the industry average of 10.76%.
  • The 3 year average ROIC (8.15%) for NOW is below the current ROIC(9.33%), indicating increased profibility in the last year.
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

  • NOW's Profit Margin of 13.16% is fine compared to the rest of the industry. NOW outperforms 75.18% of its industry peers.
  • NOW's Profit Margin has improved in the last couple of years.
  • NOW has a Operating Margin of 13.76%. This is in the better half of the industry: NOW outperforms 79.20% of its industry peers.
  • NOW's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 77.56%, NOW is in the better half of the industry, outperforming 73.72% of the companies in the same industry.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOW is destroying value.
  • Compared to 1 year ago, NOW has more shares outstanding
  • The number of shares outstanding for NOW has been increased compared to 5 years ago.
  • The debt/assets ratio for NOW has been reduced compared to a year ago.
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.
  • NOW's Debt to FCF ratio of 0.33 is fine compared to the rest of the industry. NOW outperforms 79.56% of its industry peers.
  • NOW has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.12, NOW perfoms like the industry average, outperforming 51.46% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.33
Altman-Z N/A
ROIC/WACC0.85
WACC11%
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 has a worse Current ratio (1.00) than 73.72% 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 72.63% 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

More info and screens

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.
  • The Earnings Per Share has been growing by 30.37% on average over the past years. This is a very strong growth
  • The Revenue has grown by 20.88% in the past year. This is a very strong growth!
  • 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 19.08% 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 19.17% on average per year.
EPS Next Y19.44%
EPS Next 2Y25.87%
EPS Next 3Y20.67%
EPS Next 5Y19.08%
Revenue Next Year20.73%
Revenue Next 2Y19.55%
Revenue Next 3Y19.35%
Revenue Next 5Y19.17%

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.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • NOW is valuated quite expensively with a Price/Earnings ratio of 29.48.
  • The rest of the industry has a similar Price/Earnings ratio as NOW.
  • NOW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.64.
  • A Price/Forward Earnings ratio of 24.68 indicates a rather expensive valuation of NOW.
  • NOW's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 27.75. NOW is around the same levels.
Industry RankSector Rank
PE 29.48
Fwd PE 24.68
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 a bit cheaper than the industry average as 60.22% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOW indicates a somewhat cheap valuation: NOW is cheaper than 67.15% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 23.88
EV/EBITDA 38.24
NOW Per share dataNOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of NOW may justify a higher PE ratio.
  • A more expensive valuation may be justified as NOW's earnings are expected to grow with 20.67% in the coming years.
PEG (NY)1.52
PEG (5Y)0.97
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 (2/24/2026, 12:03:09 PM)

103.48

+2.68 (+2.66%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners90.36%
Inst Owner Change340.76%
Ins Owners0.11%
Ins Owner Change23.26%
Market Cap108.24B
Revenue(TTM)13.28B
Net Income(TTM)1.75B
Analysts83.46
Price Target199.14 (92.44%)
Short Float %2.03%
Short Ratio1.49
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)-10.96%
PT rev (3m)-83.22%
EPS NQ rev (1m)1.48%
EPS NQ rev (3m)-79.56%
EPS NY rev (1m)1.63%
EPS NY rev (3m)-79.53%
Revenue NQ rev (1m)2%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)1.78%
Revenue NY rev (3m)2.06%
Valuation
Industry RankSector Rank
PE 29.48
Fwd PE 24.68
P/S 8.15
P/FCF 23.88
P/OCF 19.88
P/B 8.35
P/tB 13.1
EV/EBITDA 38.24
EPS(TTM)3.51
EY3.39%
EPS(NY)4.19
Fwd EY4.05%
FCF(TTM)4.33
FCFY4.19%
OCF(TTM)5.2
OCFY5.03%
SpS12.69
BVpS12.39
TBVpS7.9
PEG (NY)1.52
PEG (5Y)0.97
Graham Number31.29
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
WACC11%
ROIC/WACC0.85
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 5Y19.08%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y22.38%
Revenue growth 5Y24.05%
Sales Q2Q%20.66%
Revenue Next Year20.73%
Revenue Next 2Y19.55%
Revenue Next 3Y19.35%
Revenue Next 5Y19.17%
EBIT growth 1Y33.94%
EBIT growth 3Y72.81%
EBIT growth 5Y55.91%
EBIT Next Year39.14%
EBIT Next 3Y22.86%
EBIT Next 5Y22.49%
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 5 / 10 to NOW.


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

ChartMill assigns a valuation rating of 4 / 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 7 / 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.