SERVICENOW INC (NOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NOW - US81762P1021 - Common Stock
131.17 USD
-3.44 (-2.56%)
131.4 USD
+0.23 (+0.18%)
Overall NOW gets a fundamental rating of 6 out of 10. We evaluated NOW against 276 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 growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year NOW was profitable.
- In the past year NOW had a positive cash flow from operations.
- Each year in the past 5 years NOW has been profitable.
- NOW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of NOW (7.94%) is better than 80.07% of its industry peers.
- With an excellent Return On Equity value of 15.32%, NOW belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
- NOW has a better Return On Invested Capital (10.34%) than 85.51% 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 3 year average ROIC (6.51%) for NOW is below the current ROIC(10.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 15.32% | ||
| ROIC | 10.34% |
ROA(3y)6.46%
ROA(5y)4.58%
ROE(3y)14.66%
ROE(5y)10.88%
ROIC(3y)6.51%
ROIC(5y)5.28%
1.3 Margins
- NOW has a Profit Margin of 13.67%. This is in the better half of the industry: NOW outperforms 75.36% of its industry peers.
- In the last couple of years the Profit Margin of NOW has declined.
- With an excellent Operating Margin value of 13.85%, NOW belongs to the best of the industry, outperforming 80.80% of the companies in the same industry.
- In the last couple of years the Operating Margin of NOW has grown nicely.
- With a decent Gross Margin value of 78.05%, NOW is doing good in the industry, outperforming 76.09% of the companies in the same industry.
- NOW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.85% | ||
| PM (TTM) | 13.67% | ||
| GM | 78.05% |
OM growth 3Y41.76%
OM growth 5Y59.12%
PM growth 3Y49.27%
PM growth 5Y-6.45%
GM growth 3Y0.91%
GM growth 5Y0.57%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOW is destroying value.
- NOW has more shares outstanding than it did 1 year ago.
- NOW has more shares outstanding than it did 5 years ago.
- NOW has a better debt/assets ratio than last year.
2.2 Solvency
- NOW has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 0.38, NOW is doing good in the industry, outperforming 79.35% of the companies in the same industry.
- A Debt/Equity ratio of 0.13 indicates that NOW is not too dependend on debt financing.
- NOW has a Debt to Equity ratio (0.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.96
WACC10.77%
2.3 Liquidity
- NOW has a Current Ratio of 1.06. This is a normal value and indicates that NOW is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of NOW (1.06) is worse than 71.74% of its industry peers.
- NOW has a Quick Ratio of 1.06. 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 1.06. This is in the lower half of the industry: NOW underperforms 71.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.31% over the past year.
- NOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.14% yearly.
- The Revenue has grown by 21.05% in the past year. This is a very strong growth!
- The Revenue has been growing by 25.99% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)24.31%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%29.57%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.81%
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 18.75% yearly.
- Based on estimates for the next years, NOW will show a quite strong growth in Revenue. The Revenue will grow by 18.38% on average per year.
EPS Next Y29.2%
EPS Next 2Y21.68%
EPS Next 3Y20.96%
EPS Next 5Y18.75%
Revenue Next Year20.57%
Revenue Next 2Y19.49%
Revenue Next 3Y19.17%
Revenue Next 5Y18.38%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 39.51, NOW can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as NOW.
- When comparing the Price/Earnings ratio of NOW to the average of the S&P500 Index (27.54), we can say NOW is valued slightly more expensively.
- With a Price/Forward Earnings ratio of 31.80, NOW can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NOW is on the same level as its industry peers.
- NOW is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.51 | ||
| Fwd PE | 31.8 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOW indicates a rather cheap valuation: NOW is cheaper than 90.58% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, NOW is valued cheaply inside the industry as 96.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.97 | ||
| EV/EBITDA | 8.76 |
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 20.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)1.19
EPS Next 2Y21.68%
EPS Next 3Y20.96%
5. Dividend
5.1 Amount
- NOW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
131.17
-3.44 (-2.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners90.36%
Inst Owner Change4.94%
Ins Owners0.11%
Ins Owner Change0.51%
Market Cap27.22B
Revenue(TTM)12.67B
Net Income(TTM)1.73B
Analysts83.53
Price Target231.78 (76.7%)
Short Float %N/A
Short Ratio1.26
Dividend
| Industry Rank | Sector 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)12.64%
Min EPS beat(2)11.85%
Max EPS beat(2)13.44%
EPS beat(4)3
Avg EPS beat(4)7.15%
Min EPS beat(4)-0.99%
Max EPS beat(4)13.44%
EPS beat(8)7
Avg EPS beat(8)7.8%
EPS beat(12)11
Avg EPS beat(12)9.66%
EPS beat(16)15
Avg EPS beat(16)7.95%
Revenue beat(2)2
Avg Revenue beat(2)1.31%
Min Revenue beat(2)0.62%
Max Revenue beat(2)2%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)2%
Revenue beat(8)4
Avg Revenue beat(8)0.21%
Revenue beat(12)5
Avg Revenue beat(12)0.04%
Revenue beat(16)6
Avg Revenue beat(16)-0.15%
PT rev (1m)-80.35%
PT rev (3m)-80.26%
EPS NQ rev (1m)-80%
EPS NQ rev (3m)-80.34%
EPS NY rev (1m)-79.43%
EPS NY rev (3m)-78.92%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.51 | ||
| Fwd PE | 31.8 | ||
| P/S | 2.15 | ||
| P/FCF | 6.97 | ||
| P/OCF | 5.62 | ||
| P/B | 2.41 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | 8.76 |
EPS(TTM)3.32
EY2.53%
EPS(NY)4.12
Fwd EY3.14%
FCF(TTM)18.82
FCFY14.35%
OCF(TTM)23.33
OCFY17.79%
SpS61.05
BVpS54.47
TBVpS43.81
PEG (NY)1.35
PEG (5Y)1.19
Graham Number63.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 15.32% | ||
| ROCE | 12.61% | ||
| ROIC | 10.34% | ||
| ROICexc | 16.91% | ||
| ROICexgc | 22.84% | ||
| OM | 13.85% | ||
| PM (TTM) | 13.67% | ||
| GM | 78.05% | ||
| FCFM | 30.83% |
ROA(3y)6.46%
ROA(5y)4.58%
ROE(3y)14.66%
ROE(5y)10.88%
ROIC(3y)6.51%
ROIC(5y)5.28%
ROICexc(3y)13.22%
ROICexc(5y)11.32%
ROICexgc(3y)18.4%
ROICexgc(5y)16.07%
ROCE(3y)7.94%
ROCE(5y)6.44%
ROICexgc growth 3Y18.02%
ROICexgc growth 5Y53.98%
ROICexc growth 3Y29.2%
ROICexc growth 5Y52.18%
OM growth 3Y41.76%
OM growth 5Y59.12%
PM growth 3Y49.27%
PM growth 5Y-6.45%
GM growth 3Y0.91%
GM growth 5Y0.57%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.38 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 137.65% | ||
| Cap/Sales | 7.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 198.81% | ||
| Profit Quality | 225.59% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | N/A |
F-Score7
WACC10.77%
ROIC/WACC0.96
Cap/Depr(3y)136.22%
Cap/Depr(5y)124.36%
Cap/Sales(3y)7.82%
Cap/Sales(5y)7.96%
Profit Quality(3y)353.89%
Profit Quality(5y)596.69%
High Growth Momentum
Growth
EPS 1Y (TTM)24.31%
EPS 3Y32.78%
EPS 5Y33.14%
EPS Q2Q%29.57%
EPS Next Y29.2%
EPS Next 2Y21.68%
EPS Next 3Y20.96%
EPS Next 5Y18.75%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y23.05%
Revenue growth 5Y25.99%
Sales Q2Q%21.81%
Revenue Next Year20.57%
Revenue Next 2Y19.49%
Revenue Next 3Y19.17%
Revenue Next 5Y18.38%
EBIT growth 1Y39.29%
EBIT growth 3Y74.43%
EBIT growth 5Y100.47%
EBIT Next Year50.19%
EBIT Next 3Y29.86%
EBIT Next 5Y23.66%
FCF growth 1Y64.21%
FCF growth 3Y23.49%
FCF growth 5Y30.31%
OCF growth 1Y63.82%
OCF growth 3Y24.88%
OCF growth 5Y28.12%
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 29.2% in the next year.