SERVICENOW INC (NOW) Fundamental Analysis & Valuation

NYSE:NOW • US81762P1021

Current stock price

104.65 USD
-6.3 (-5.68%)
At close:
105.3 USD
+0.65 (+0.62%)
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

  • In the past year NOW was profitable.
  • In the past year NOW had a positive cash flow from operations.
  • NOW had positive earnings in each of the past 5 years.
  • NOW had a positive operating cash flow in each of the past 5 years.
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 79.14% of its industry peers.
  • The Return On Equity of NOW (13.48%) is better than 79.14% of its industry peers.
  • With an excellent Return On Invested Capital value of 9.33%, NOW belongs to the best of the industry, outperforming 84.17% 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 10.92%.
  • 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

  • With a decent Profit Margin value of 13.16%, NOW is doing good in the industry, outperforming 78.42% of the companies in the same industry.
  • NOW's Profit Margin has improved in the last couple of years.
  • NOW has a better Operating Margin (13.76%) than 80.58% of its industry peers.
  • In the last couple of years the Operating Margin of NOW has grown nicely.
  • Looking at the Gross Margin, with a value of 77.56%, NOW is in the better half of the industry, outperforming 74.10% of the companies in the same industry.
  • In the last couple of years the Gross Margin of NOW has remained more or less at the same level.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOW is destroying value.
  • NOW has more shares outstanding than it did 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

  • The Debt to FCF ratio of NOW is 0.33, which is an excellent value as it means it would take NOW, only 0.33 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of NOW (0.33) is better than 78.78% 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 51.80% 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
WACC10.94%
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

  • NOW has a Current 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.
  • Looking at the Current ratio, with a value of 1.00, NOW is doing worse than 74.46% of the companies in the same industry.
  • 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.
  • The Quick ratio of NOW (1.00) is worse than 73.74% 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.
  • Looking at the last year, NOW shows a very strong growth in Revenue. 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

  • NOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.08% yearly.
  • 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 Year20.74%
Revenue Next 2Y19.6%
Revenue Next 3Y19.42%
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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4

4. NOW Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 29.81, the valuation of NOW can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of NOW is on the same level as its industry peers.
  • NOW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.50, which is the current average of the S&P500 Index.
  • NOW is valuated rather expensively with a Price/Forward Earnings ratio of 24.84.
  • NOW's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of NOW to the average of the S&P500 Index (22.67), we can say NOW is valued inline with the index average.
Industry RankSector Rank
PE 29.81
Fwd PE 24.84
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 61.15% of the companies in the same industry.
  • 65.11% of the companies in the same industry are more expensive than NOW, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 24.15
EV/EBITDA 42.38
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.
  • 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)1.49
PEG (5Y)0.98
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 (3/24/2026, 8:04:00 PM)

After market: 105.3 +0.65 (+0.62%)

104.65

-6.3 (-5.68%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners89.62%
Inst Owner Change343.87%
Ins Owners0.13%
Ins Owner Change26.56%
Market Cap109.46B
Revenue(TTM)13.28B
Net Income(TTM)1.75B
Analysts83.46
Price Target194.67 (86.02%)
Short Float %2.54%
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)-2.25%
PT rev (3m)-83.5%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-79.65%
EPS NY rev (1m)0.48%
EPS NY rev (3m)-79.55%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)1.97%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.07%
Valuation
Industry RankSector Rank
PE 29.81
Fwd PE 24.84
P/S 8.24
P/FCF 24.15
P/OCF 20.11
P/B 8.44
P/tB 13.24
EV/EBITDA 42.38
EPS(TTM)3.51
EY3.35%
EPS(NY)4.21
Fwd EY4.03%
FCF(TTM)4.33
FCFY4.14%
OCF(TTM)5.2
OCFY4.97%
SpS12.69
BVpS12.39
TBVpS7.9
PEG (NY)1.49
PEG (5Y)0.98
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
WACC10.94%
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 Year20.74%
Revenue Next 2Y19.6%
Revenue Next 3Y19.42%
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 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 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 20.01% in the next year.