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
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
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 has a great profitability rating, 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

  • NOW had positive earnings in the past year.
  • NOW had a positive operating cash flow in the past year.
  • In the past 5 years NOW has always been profitable.
  • 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

  • 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.
  • The Average Return On Invested Capital over the past 3 years for NOW is below the industry average of 10.78%.
  • 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 Profit Margin of 13.16%. This is in the better half of the industry: NOW outperforms 74.82% of its industry peers.
  • NOW's Profit Margin has improved in the last couple of years.
  • NOW has a better Operating Margin (13.76%) than 80.22% 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 74.10% 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

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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.
  • NOW has a better debt/assets ratio than last year.
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.
  • NOW has a Debt to FCF ratio of 0.33. This is in the better half of the industry: NOW outperforms 79.50% 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 51.44% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.33
Altman-Z N/A
ROIC/WACC0.86
WACC10.91%
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 74.10% 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.
  • NOW has a Quick ratio of 1.00. This is in the lower half of the industry: NOW underperforms 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

  • The Earnings Per Share has grown by an impressive 25.99% over the past year.
  • NOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.37% yearly.
  • The Revenue has grown by 20.88% in the past year. This is a very strong growth!
  • NOW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.05% yearly.
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 16.42% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 17.38% on average over the next years. This is quite good.
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

  • The Price/Earnings ratio is 28.70, which means the current valuation is very expensive for NOW.
  • 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 27.92, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 24.03, NOW is valued on the expensive side.
  • NOW's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 27.78. NOW is around the same levels.
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.
  • NOW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NOW is 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.
  • The excellent 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)1.48
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

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

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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
WACC10.91%
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.