SERVICENOW INC (NOW) Stock Fundamental Analysis

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

111.07 USD
+1.3 (+1.18%)
At close: Feb 4, 2026
112.04 USD
+0.97 (+0.87%)
Pre-Market: 2/5/2026, 5:22:12 AM
Fundamental Rating

6

Overall NOW gets a fundamental rating of 6 out of 10. We evaluated NOW against 278 industry peers in the Software industry. NOW has an excellent profitability rating, but there are some minor concerns on its financial health. NOW is not priced too expensively while it is growing strongly. Keep and eye on this one!


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.
  • NOW had positive earnings in each of the past 5 years.
  • Each year in the past 5 years NOW had a positive operating cash flow.
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 better Return On Assets (6.71%) than 75.90% of its industry peers.
  • NOW has a Return On Equity of 13.48%. This is in the better half of the industry: NOW outperforms 78.78% of its industry peers.
  • NOW has a better Return On Invested Capital (9.33%) than 82.73% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years 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

  • NOW's Profit Margin of 13.16% is fine compared to the rest 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.
  • 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.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

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 about the same amount of shares outstanding.
  • Compared to 5 years ago, NOW has more shares outstanding
  • 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

  • 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 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.
  • A Debt/Equity ratio of 0.12 indicates that NOW is not too dependend on debt financing.
  • The Debt to Equity ratio of NOW (0.12) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.33
Altman-Z N/A
ROIC/WACC0.85
WACC11.03%
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.
  • With a Current ratio value of 1.00, NOW is not doing good in the industry: 74.10% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.00 indicates that NOW should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.00, NOW is doing worse than 72.66% of the companies in the same industry.
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.
  • The Earnings Per Share has been growing by 30.37% on average over the past years. This is a very strong growth
  • NOW shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.88%.
  • 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

  • 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.
  • NOW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.38% yearly.
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.
  • 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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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 31.64, NOW can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Earnings ratio as NOW.
  • The average S&P500 Price/Earnings ratio is at 28.25. NOW is around the same levels.
  • Based on the Price/Forward Earnings ratio of 26.49, the valuation of NOW can be described as expensive.
  • NOW's Price/Forward Earnings is on the same level as the industry average.
  • NOW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 31.64
Fwd PE 26.49
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

  • NOW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NOW is cheaper than 92.45% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOW indicates a rather cheap valuation: NOW is cheaper than 97.12% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 5.08
EV/EBITDA 6.12
NOW Per share dataNOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The 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.
  • NOW's earnings are expected to grow with 20.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.63
PEG (5Y)1.04
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 (2/4/2026, 8:04:00 PM)

Premarket: 112.04 +0.97 (+0.87%)

111.07

+1.3 (+1.18%)

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 Cap23.04B
Revenue(TTM)13.28B
Net Income(TTM)1.75B
Analysts83.53
Price Target199.14 (79.29%)
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 31.64
Fwd PE 26.49
P/S 1.74
P/FCF 5.08
P/OCF 4.23
P/B 1.78
P/tB 2.79
EV/EBITDA 6.12
EPS(TTM)3.51
EY3.16%
EPS(NY)4.19
Fwd EY3.77%
FCF(TTM)21.85
FCFY19.67%
OCF(TTM)26.24
OCFY23.62%
SpS64
BVpS62.48
TBVpS39.84
PEG (NY)1.63
PEG (5Y)1.04
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
WACC11.03%
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 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.