SERVICENOW INC (NOW) Fundamental Analysis & Valuation

NYSE:NOW • US81762P1021

Current stock price

89.81 USD
-7.66 (-7.86%)
At close:
88.5 USD
-1.31 (-1.46%)
After Hours:

This NOW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. NOW Profitability Analysis

1.1 Basic Checks

  • NOW had positive earnings in the past year.
  • 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

  • NOW has a Return On Assets of 6.71%. This is in the better half of the industry: NOW outperforms 79.27% of its industry peers.
  • NOW's Return On Equity of 13.48% is fine compared to the rest of the industry. NOW outperforms 79.27% of its industry peers.
  • With an excellent Return On Invested Capital value of 9.33%, NOW belongs to the best of the industry, outperforming 84.00% 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 10.99%.
  • 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 has a better Profit Margin (13.16%) than 78.55% of its industry peers.
  • NOW's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 13.76%, NOW belongs to the top of the industry, outperforming 80.36% of the companies in the same industry.
  • 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 73.82% 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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4

2. NOW Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOW is destroying value.
  • Compared to 1 year ago, NOW has more shares outstanding
  • Compared to 5 years ago, NOW has more shares outstanding
  • 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.
  • With a decent Debt to FCF ratio value of 0.33, NOW is doing good in the industry, outperforming 78.91% of the companies in the same industry.
  • NOW has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
  • NOW's Debt to Equity ratio of 0.12 is in line compared to the rest of the industry. NOW outperforms 52.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.33
Altman-Z N/A
ROIC/WACC0.85
WACC10.92%
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.
  • Looking at the Current ratio, with a value of 1.00, NOW is doing worse than 74.91% of the companies in the same industry.
  • A Quick Ratio of 1.00 indicates that NOW should not have too much problems paying its short term obligations.
  • NOW has a Quick ratio of 1.00. This is in the lower half of the industry: NOW underperforms 73.82% 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. NOW Growth Analysis

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

  • The Earnings Per Share is expected to grow by 19.08% on average over the next years. This is quite good.
  • NOW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.17% yearly.
EPS Next Y20.01%
EPS Next 2Y20.21%
EPS Next 3Y20.64%
EPS Next 5Y19.08%
Revenue Next Year20.75%
Revenue Next 2Y19.56%
Revenue Next 3Y19.34%
Revenue Next 5Y19.17%

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.
  • 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.
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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5

4. NOW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.59, which means the current valuation is very expensive for NOW.
  • NOW's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.91, NOW is valued at the same level.
  • A Price/Forward Earnings ratio of 21.32 indicates a rather expensive valuation of NOW.
  • The rest of the industry has a similar Price/Forward Earnings ratio as NOW.
  • When comparing the Price/Forward Earnings ratio of NOW to the average of the S&P500 Index (23.68), we can say NOW is valued inline with the index average.
Industry RankSector Rank
PE 25.59
Fwd PE 21.32
NOW Price Earnings VS Forward Price EarningsNOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • NOW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NOW is cheaper than 62.18% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, NOW is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 20.72
EV/EBITDA 36.88
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

  • 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.
  • A more expensive valuation may be justified as NOW's earnings are expected to grow with 20.64% in the coming years.
PEG (NY)1.28
PEG (5Y)0.84
EPS Next 2Y20.21%
EPS Next 3Y20.64%

More info and screens

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

0

5. NOW Dividend Analysis

5.1 Amount

  • No dividends for NOW!.
Industry RankSector Rank
Dividend Yield 0%

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NOW Fundamentals: All Metrics, Ratios and Statistics

SERVICENOW INC

NYSE:NOW (4/9/2026, 8:04:00 PM)

After market: 88.5 -1.31 (-1.46%)

89.81

-7.66 (-7.86%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-22
Inst Owners89.62%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner Change26.56%
Market Cap93.94B
Revenue(TTM)13.28B
Net Income(TTM)1.75B
Analysts83.46
Price Target193.69 (115.67%)
Short Float %2.67%
Short Ratio1.35
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)-0.5%
PT rev (3m)-16.43%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.94%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.98%
Valuation
Industry RankSector Rank
PE 25.59
Fwd PE 21.32
P/S 7.07
P/FCF 20.72
P/OCF 17.26
P/B 7.25
P/tB 11.37
EV/EBITDA 36.88
EPS(TTM)3.51
EY3.91%
EPS(NY)4.21
Fwd EY4.69%
FCF(TTM)4.33
FCFY4.83%
OCF(TTM)5.2
OCFY5.8%
SpS12.69
BVpS12.39
TBVpS7.9
PEG (NY)1.28
PEG (5Y)0.84
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
WACC10.92%
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 Y20.01%
EPS Next 2Y20.21%
EPS Next 3Y20.64%
EPS Next 5Y19.08%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y22.38%
Revenue growth 5Y24.05%
Sales Q2Q%20.66%
Revenue Next Year20.75%
Revenue Next 2Y19.56%
Revenue Next 3Y19.34%
Revenue Next 5Y19.17%
EBIT growth 1Y33.94%
EBIT growth 3Y72.81%
EBIT growth 5Y55.91%
EBIT Next Year44.76%
EBIT Next 3Y26.07%
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 Fundamental Analysis 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.


Can you provide the profitability details for SERVICENOW INC?

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


What are the PE and PB ratios of SERVICENOW INC (NOW) stock?

The Price/Earnings (PE) ratio for SERVICENOW INC (NOW) is 25.59 and the Price/Book (PB) ratio is 7.25.


What is the earnings growth outlook for SERVICENOW INC?

The Earnings per Share (EPS) of SERVICENOW INC (NOW) is expected to grow by 20.01% in the next year.