DB:4S0

Stock Analysis Report

Executive Summary

ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide.

Rewards

Trading at 14.2% below its fair value

Earnings are forecast to grow 96.7% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential with excellent balance sheet.


Similar Companies

Oracle

NYSE:ORCL

Share Price & News

How has ServiceNow's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4S0 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.04%

4S0

1.7%

DE Software

1.0%

DE Market


1 Year Return

51.5%

4S0

38.5%

DE Software

15.7%

DE Market

Return vs Industry: 4S0 exceeded the German Software industry which returned 38.5% over the past year.

Return vs Market: 4S0 exceeded the German Market which returned 15.7% over the past year.


Shareholder returns

4S0IndustryMarket
7 Day-0.04%1.7%1.0%
30 Day6.4%2.1%1.0%
90 Day7.5%15.4%6.7%
1 Year51.5%51.5%40.3%38.5%19.3%15.7%
3 Year225.3%225.3%63.3%56.7%19.5%8.9%
5 Year337.4%337.4%138.7%121.7%36.9%18.3%

Price Volatility Vs. Market

How volatile is ServiceNow's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ServiceNow undervalued compared to its fair value and its price relative to the market?

14.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 4S0 (€243.75) is trading below our estimate of fair value (€284.16)

Significantly Below Fair Value: 4S0 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 4S0 is poor value based on its PE Ratio (1398.6x) compared to the Software industry average (40.8x).

PE vs Market: 4S0 is poor value based on its PE Ratio (1398.6x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: 4S0 is poor value based on its PEG Ratio (14.5x)


Price to Book Ratio

PB vs Industry: 4S0 is overvalued based on its PB Ratio (35x) compared to the DE Software industry average (3.1x).


Next Steps

Future Growth

How is ServiceNow forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?

96.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4S0's forecast earnings growth (96.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: 4S0's earnings (96.7% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 4S0's revenue (21.9% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: 4S0's revenue (21.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4S0's Return on Equity is forecast to be high in 3 years time (35.9%)


Next Steps

Past Performance

How has ServiceNow performed over the past 5 years?

31.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4S0 has high quality earnings.

Growing Profit Margin: 4S0 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 4S0 has become profitable over the past 5 years, growing earnings by 31.8% per year.

Accelerating Growth: 4S0 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 4S0 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (14.6%).


Return on Equity

High ROE: 4S0's Return on Equity (2.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ServiceNow's financial position?


Financial Position Analysis

Short Term Liabilities: 4S0's short term assets ($2.3B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: 4S0's short term assets ($2.3B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: 4S0's debt to equity ratio (48%) is considered high.

Reducing Debt: 4S0's debt to equity ratio has reduced from 104.5% to 48% over the past 5 years.

Debt Coverage: 4S0's debt is well covered by operating cash flow (160.9%).

Interest Coverage: 4S0 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 4S0 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 4S0's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

What is ServiceNow's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 4S0's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 4S0's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 4S0's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 4S0's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 4S0's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of ServiceNow's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Bill McDermott (57yo)

0.08yrs

Tenure

0

Mr. William R. McDermott, also known as Bill, serves as President, CEO & Director of ServiceNow Inc. since November 2019. He served as Member of Executive Board at SAP SE from October 2019 to November 2019 ...


Management Age and Tenure

2.4yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 4S0's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

57yo

Average Age

Experienced Board: 4S0's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 4S0 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€912,16926 Nov 19
William McDermott
EntityIndividual
Role
Chief Executive Officer
President
Shares3,600
Max Price€253.38
Sell€163,81419 Nov 19
Patricia Wadors
EntityIndividual
Role
Senior Key Executive
Chief Talent Officer
Shares704
Max Price€232.69
Sell€164,99220 Aug 19
Patricia Wadors
EntityIndividual
Role
Senior Key Executive
Chief Talent Officer
Shares704
Max Price€234.36
Sell€7,195,07315 Aug 19
Michael Scarpelli
EntityIndividual
Shares30,945
Max Price€233.28
Sell€458,67730 Jul 19
Frederic Luddy
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,770
Max Price€259.14
Sell€168,22521 May 19
Patricia Wadors
EntityIndividual
Role
Senior Key Executive
Chief Talent Officer
Shares704
Max Price€238.96
Sell€6,452,02420 May 19
Michael Scarpelli
EntityIndividual
Shares25,899
Max Price€251.32
Sell€6,194,83627 Feb 19
Michael Scarpelli
EntityIndividual
Shares29,553
Max Price€209.62
Sell€270,24926 Feb 19
Anita Sands
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,304
Max Price€207.25
Sell€1,418,88905 Feb 19
Jeffrey Miller
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares7,397
Max Price€191.82

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Management Team

  • Bill McDermott (57yo)

    President

    • Tenure: 0.08yrs
  • Russ Elmer (54yo)

    General Counsel & Secretary

    • Tenure: 1.9yrs
  • Pat Wadors (54yo)

    Chief Talent Officer

    • Tenure: 0yrs
    • Compensation: US$4.52m
  • David Schneider (51yo)

    President of Global Customer Operations

    • Tenure: 5.5yrs
    • Compensation: US$7.33m
  • Alan Marks (56yo)

    Chief Communications Officer

    • Tenure: 2.9yrs
  • Gina Mastantuono (49yo)

    Chief Financial Officer

    • Tenure: 0.9yrs
  • CJ Desai (48yo)

    Chief Product Officer

    • Tenure: 3yrs
    • Compensation: US$7.42m
  • Chris Bedi

    Chief Information Officer

    • Tenure: 4.9yrs
  • Fay Goon (41yo)

    Principal Accounting Officer

    • Tenure: 0.8yrs
  • Lisa Banks

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bill McDermott (57yo)

    President

    • Tenure: 0.08yrs
  • Jeff Miller (68yo)

    Lead Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$404.99k
  • Fred Luddy (64yo)

    Chairman of the Board

    • Tenure: 1.9yrs
    • Compensation: US$350.38k
  • John Donahoe (58yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$16.68m
  • Sue Bostrom (59yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$386.99k
  • Jonathan Chadwick (53yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$388.92k
  • Dennis Woodside (50yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$411.44k
  • Anita Sands (43yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$379.99k
  • Teresa Briggs

    Independent Director

    • Tenure: 0.8yrs
  • Paul Chamberlain (55yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$379.99k

Company Information

ServiceNow, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ServiceNow, Inc.
  • Ticker: 4S0
  • Exchange: DB
  • Founded: 2004
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$50.091b
  • Listing Market Cap: US$45.032b
  • Shares outstanding: 188.56m
  • Website: https://www.servicenow.com

Number of Employees


Location

  • ServiceNow, Inc.
  • 2225 Lawson Lane
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOWNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2012
4S0DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2012
0L5NLSE (London Stock Exchange)YesCommon StockGBUSDJun 2012
NOWW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2012
SNOWWBAG (Wiener Boerse AG)YesCommon StockATEURJun 2012

Biography

ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. The company offers information technology (IT) service manage ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 21:43
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.