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ServiceNow

DB:4S0
Snowflake Description

High growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
4S0
DB
$43B
Market Cap
  1. Home
  2. DE
  3. Software
Company description

ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. The last earnings update was 20 days ago. More info.


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  • ServiceNow has significant price volatility in the past 3 months.
4S0 Share Price and Events
7 Day Returns
0.4%
DB:4S0
2.9%
DE Software
1.3%
DE Market
1 Year Returns
51%
DB:4S0
13.4%
DE Software
-7.6%
DE Market
4S0 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ServiceNow (4S0) 0.4% 3.3% 35.3% 51% 282.5% -
DE Software 2.9% 5.2% 13.3% 13.4% 42.9% 81.2%
DE Market 1.3% 2.8% 7.5% -7.6% 9.3% 13.3%
1 Year Return vs Industry and Market
  • 4S0 outperformed the Software industry which returned 13.4% over the past year.
  • 4S0 outperformed the Market in Germany which returned -7.6% over the past year.
Price Volatility
4S0
Industry
5yr Volatility vs Market
Related Companies

Value

 Is ServiceNow undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ServiceNow to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for ServiceNow.

DB:4S0 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 34 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:4S0
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.134 (1 + (1- 21%) (1.52%))
1.099
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.099 * 5.96%)
6.78%

Discounted Cash Flow Calculation for DB:4S0 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ServiceNow is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:4S0 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.78%)
2019 954.43 Analyst x18 893.84
2020 1,238.73 Analyst x19 1,086.45
2021 1,283.14 Analyst x4 1,053.97
2022 1,582.54 Analyst x3 1,217.37
2023 1,984.26 Analyst x3 1,429.50
2024 2,217.17 Est @ 11.74% 1,495.91
2025 2,400.87 Est @ 8.29% 1,517.02
2026 2,541.76 Est @ 5.87% 1,504.09
2027 2,647.90 Est @ 4.18% 1,467.43
2028 2,727.12 Est @ 2.99% 1,415.40
Present value of next 10 years cash flows $13,080.98
DB:4S0 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,727.12 × (1 + 0.23%) ÷ (6.78% – 0.23%)
$41,729.06
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $41,729.06 ÷ (1 + 6.78%)10
$21,657.72
DB:4S0 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $13,080.98 + $21,657.72
$34,738.70
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $34,738.70 / 180.50
$169.38
DB:4S0 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:4S0 represents 0.88006x of NYSE:NOW
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88006x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 192.46 x 0.88006
€169.38
Value per share (EUR) From above. €169.38
Current discount Discount to share price of €212.94
= -1 x (€212.94 - €169.38) / €169.38
-25.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of ServiceNow is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ServiceNow's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ServiceNow's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:4S0 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.15
NYSE:NOW Share Price ** NYSE (2019-03-19) in USD $241.96
Germany Software Industry PE Ratio Median Figure of 23 Publicly-Listed Software Companies 35.42x
Germany Market PE Ratio Median Figure of 423 Publicly-Listed Companies 19.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ServiceNow.

DB:4S0 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NOW Share Price ÷ EPS (both in USD)

= 241.96 ÷ -0.15

-1611.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ServiceNow is loss making, we can't compare its value to the DE Software industry average.
  • ServiceNow is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does ServiceNow's expected growth come at a high price?
Raw Data
DB:4S0 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1611.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 34 Analysts
87.9%per year
Germany Software Industry PEG Ratio Median Figure of 16 Publicly-Listed Software Companies 1.46x
Germany Market PEG Ratio Median Figure of 276 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for ServiceNow, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ServiceNow's assets?
Raw Data
DB:4S0 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $6.17
NYSE:NOW Share Price * NYSE (2019-03-19) in USD $241.96
Germany Software Industry PB Ratio Median Figure of 33 Publicly-Listed Software Companies 2.82x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.76x
DB:4S0 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NOW Share Price ÷ Book Value per Share (both in USD)

= 241.96 ÷ 6.17

39.23x

* Primary Listing of ServiceNow.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ServiceNow is overvalued based on assets compared to the DE Software industry average.
X
Value checks
We assess ServiceNow's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. ServiceNow has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is ServiceNow expected to perform in the next 1 to 3 years based on estimates from 34 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
87.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ServiceNow expected to grow at an attractive rate?
  • ServiceNow's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • ServiceNow's earnings growth is expected to exceed the Germany market average.
  • ServiceNow's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:4S0 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:4S0 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 34 Analysts 87.9%
DB:4S0 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 34 Analysts 18.9%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:4S0 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 34 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:4S0 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 9,018 3,183 1
2022-12-31 7,313 2,540 1
2021-12-31 5,542 1,908 274 7
2020-12-31 4,392 1,536 237 33
2019-12-31 3,428 1,167 -6 34
DB:4S0 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,609 811 -27
2018-09-30 2,457 706 -83
2018-06-30 2,276 702 -114
2018-03-31 2,093 705 -117
2017-12-31 1,918 643 -117
2017-09-30 1,755 591 -132
2017-06-30 1,620 546 -146
2017-03-31 1,513 269 -140
2016-12-31 1,391 159 -414
2016-09-30 1,290 134 -457
2016-06-30 1,194 101 -461
2016-03-31 1,099 329 -474

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ServiceNow's earnings are expected to grow significantly at over 20% yearly.
  • ServiceNow's revenue is expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:4S0 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 34 Analyst Estimates (S&P Global) See Below

All data from ServiceNow Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:4S0 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.64 2.21 -0.94 2.00
2020-12-31 0.37 1.64 -1.31 11.00
2019-12-31 -0.09 0.70 -1.05 13.00
DB:4S0 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.15
2018-09-30 -0.47
2018-06-30 -0.65
2018-03-31 -0.68
2017-12-31 -0.68
2017-09-30 -0.78
2017-06-30 -0.87
2017-03-31 -0.84
2016-12-31 -2.52
2016-09-30 -2.81
2016-06-30 -2.87
2016-03-31 -2.99

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ServiceNow is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess ServiceNow's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ServiceNow has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ServiceNow performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ServiceNow's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ServiceNow does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare ServiceNow's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare ServiceNow's 1-year growth to the DE Software industry average as it is not currently profitable.
Earnings and Revenue History
ServiceNow's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ServiceNow Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:4S0 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,608.82 -26.70 1,498.08 529.50
2018-09-30 2,457.00 -83.35 1,461.75 485.40
2018-06-30 2,276.28 -113.94 1,362.27 448.21
2018-03-31 2,093.48 -116.99 1,253.52 410.30
2017-12-31 1,918.49 -116.85 1,103.11 377.52
2017-09-30 1,755.07 -132.09 1,023.14 346.89
2017-06-30 1,620.35 -146.17 959.49 323.45
2017-03-31 1,513.41 -139.99 908.54 303.80
2016-12-31 1,390.99 -414.25 817.92 285.24
2016-09-30 1,290.50 -456.59 795.16 269.75
2016-06-30 1,193.99 -461.37 740.06 250.55
2016-03-31 1,099.40 -473.67 685.44 233.47
2015-12-31 1,005.48 -198.43 625.04 217.39
2015-09-30 917.83 -205.71 579.91 200.97
2015-06-30 835.40 -205.73 535.87 184.83
2015-03-31 755.44 -194.17 485.77 167.00
2014-12-31 682.56 -179.39 436.16 148.26
2014-09-30 609.79 -158.96 390.68 130.10
2014-06-30 542.34 -132.62 346.76 111.24
2014-03-31 477.80 -103.66 297.52 93.75
2013-12-31 424.65 -73.71 256.98 78.68
2013-09-30 374.58 -59.41 221.22 68.04
2013-06-30 327.67 -57.75 194.11 58.01
2013-03-31 282.22 -45.22 160.23 49.33
2012-12-31 243.71 -37.66 135.45 39.33
2012-09-30 207.73 -30.90 119.97 30.37
2012-06-30 177.58 -17.83 102.05 22.35
2012-03-31 150.29 -8.59 83.69 15.43

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if ServiceNow has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if ServiceNow has efficiently used its assets last year compared to the DE Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if ServiceNow improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess ServiceNow's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ServiceNow has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ServiceNow's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ServiceNow's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ServiceNow is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ServiceNow's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ServiceNow's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ServiceNow Company Filings, last reported 2 months ago.

DB:4S0 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,111.20 661.71 1,497.92
2018-09-30 1,020.18 814.61 1,626.04
2018-06-30 891.71 857.13 1,749.66
2018-03-31 865.16 1,154.72 1,885.96
2017-12-31 778.74 1,173.44 1,779.30
2017-09-30 551.39 1,156.63 1,671.90
2017-06-30 482.43 1,140.06 1,692.18
2017-03-31 427.34 516.49 975.31
2016-12-31 386.96 507.81 899.36
2016-09-30 362.50 499.28 806.88
2016-06-30 324.28 490.89 806.71
2016-03-31 302.36 482.64 900.87
2015-12-31 566.81 474.53 801.25
2015-09-30 516.93 466.83 728.95
2015-06-30 463.11 459.01 722.52
2015-03-31 454.91 451.32 745.01
2014-12-31 428.68 443.44 668.79
2014-09-30 417.42 436.33 646.07
2014-06-30 398.12 429.03 677.48
2014-03-31 403.74 421.84 655.76
2013-12-31 394.26 414.78 634.55
2013-09-30 287.60 0.00 220.14
2013-06-30 267.90 0.00 253.78
2013-03-31 263.93 0.00 338.87
2012-12-31 243.41 0.00 314.69
2012-09-30 191.27 0.00 256.46
2012-06-30 25.35 0.00 88.28
2012-03-31 28.13 0.00 95.48
  • ServiceNow's level of debt (59.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (105.2% vs 59.5% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making ServiceNow has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making ServiceNow has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -57.6% per year.
X
Financial health checks
We assess ServiceNow's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ServiceNow has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from ServiceNow dividends. Estimated to be 0% next year.
If you bought €2,000 of ServiceNow shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate ServiceNow's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate ServiceNow's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:4S0 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 34 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:4S0 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 4.00
2020-12-31 0.00 5.00
2019-12-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as ServiceNow has not reported any payouts.
  • Unable to verify if ServiceNow's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of ServiceNow's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as ServiceNow has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of ServiceNow's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess ServiceNow's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ServiceNow afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ServiceNow has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Donahoe
COMPENSATION $41,698,568
AGE 57
TENURE AS CEO 1.9 years
CEO Bio

Mr. John J. Donahoe, II, has been the Chief Executive Officer and President of ServiceNow, Inc. since April 3, 2017. Mr. Donahoe has over 30 years of management experience. Mr. Donahoe served as the Chief Executive Officer and President of eBay Inc. from March 31, 2008 to July 17, 2015, where he oversaw the eBay, PayPal and eBay Enterprise businesses. Mr. Donahoe served as an Interim President of Paypal at eBay Inc. from January 3, 2012 to April 2012. He joined eBay in 2005 as President of eBay Marketplaces, responsible for eBay's global e-commerce businesses. He served as an Interim President of eBay Marketplace at eBay Inc. since September 2010 and served as its President of Auction Business Unit since February 24, 2005. Prior to joining eBay, he served as the Chief Executive Officer and Worldwide Managing Director of Bain & Company, Inc. from 1999 to March 1, 2006 and served as its Managing Director from 1992 to 1999. He joined Bain & Company Inc. in 1982, served as the Head of the San Francisco office for seven years. At Bain, Mr. Donahoe oversaw its 29 offices and 3,000 employees worldwide and served clients in the telecommunications, airlines, aerospace and financial services industries. Prior to that, he worked for the Rolm Corporation and Salomon Brothers. He has been Non-Executive Chairman and Director of PayPal Holdings, Inc. since July 17, 2015. He serves as Vice Chairman of the Advisory Council at Stanford Graduate School of Business. He has been an Independent Director of NIKE, Inc., since June 19, 2014 and Skype Global S.à r.l. (Skype S.à r.l.) since November 2009. He has been a Director of ServiceNow, Inc. since April 3, 2017. He serves as a Member of the Advisory Board and Director of eVolution Global Partners, L.L.C. He serves on the Board of Trustees at Dartmouth College and Sacred Heart Schools. He served as an Independent Director of Intel Corporation from March 2009 to May 18, 2017 and served as its Lead Independent Director from May 2016 to May 18, 2017. He served as a Director at eBay Inc. from January 2008 to July 17, 2015. He served as a Trustee of The Bridgespan Group, Inc., and other charitable organizations. He serves as a Member of the President's Export Council. Mr. Donahoe has experience in executive and financial management, strategic planning, branding, technology, cyber security, and digital commerce. Mr. Donahoe received a B.A. degree in Economics with high distinction, magna cum laude, Phi Beta Kappa from Dartmouth College and earned an M.B.A. from the Stanford University Graduate School of Business, where he was an Arjay Scholar.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • John's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the ServiceNow management team in years:

2.7
Average Tenure
51
Average Age
  • The tenure for the ServiceNow management team is about average.
Management Team

John Donahoe

TITLE
President
COMPENSATION
$42M
AGE
57
TENURE
1.9 yrs

Michael Scarpelli

TITLE
Chief Financial Officer
COMPENSATION
$7M
AGE
51
TENURE
7.6 yrs

David Schneider

TITLE
President of Global Customer Operations
COMPENSATION
$7M
AGE
50
TENURE
4.8 yrs

CJ Desai

TITLE
Chief Product Officer
COMPENSATION
$23M
AGE
47
TENURE
2.3 yrs

Fay Goon

TITLE
Principal Accounting Officer
AGE
40

Chris Bedi

TITLE
Chief Information Officer
TENURE
4.2 yrs

Russ Elmer

TITLE
General Counsel
AGE
53
TENURE
1.2 yrs

Alan Marks

TITLE
Chief Communications Officer
AGE
55
TENURE
2.2 yrs

Dan Rogers

TITLE
Chief Marketing Officer
TENURE
2.7 yrs

Dave Wright

TITLE
Chief Innovation Officer
TENURE
8.2 yrs
Board of Directors Tenure

Average tenure and age of the ServiceNow board of directors in years:

2.4
Average Tenure
57
Average Age
  • The average tenure for the ServiceNow board of directors is less than 3 years, this suggests a new board.
Board of Directors

Fred Luddy

TITLE
Chairman of the Board
COMPENSATION
$6M
AGE
63
TENURE
1.2 yrs

John Donahoe

TITLE
President
COMPENSATION
$42M
AGE
57
TENURE
1.9 yrs

Jeff Miller

TITLE
Lead Independent Director
COMPENSATION
$389K
AGE
67
TENURE
1.4 yrs

Sue Bostrom

TITLE
Independent Director
COMPENSATION
$384K
AGE
58
TENURE
4.7 yrs

Jonathan Chadwick

TITLE
Independent Director
COMPENSATION
$382K
AGE
52
TENURE
2.4 yrs

Ron Codd

TITLE
Independent Director
COMPENSATION
$395K
AGE
63
TENURE
7.1 yrs

Anita Sands

TITLE
Independent Director
COMPENSATION
$380K
AGE
42
TENURE
4.7 yrs

Paul Chamberlain

TITLE
Independent Director
COMPENSATION
$379K
AGE
54
TENURE
2.4 yrs

Dennis Woodside

TITLE
Director
AGE
49
TENURE
0.9 yrs

Teresa Briggs

TITLE
Director
Who owns this company?
Recent Insider Trading
  • ServiceNow insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
27. Feb 19 Sell Michael Scarpelli Individual 25. Feb 19 25. Feb 19 -29,553 €209.62 €-6,194,836
26. Feb 19 Sell Anita Sands Individual 22. Feb 19 22. Feb 19 -1,304 €207.25 €-270,249
05. Feb 19 Sell Jeffrey Miller Individual 01. Feb 19 01. Feb 19 -7,397 €191.82 €-1,418,889
30. Nov 18 Sell Michael Scarpelli Individual 29. Nov 18 29. Nov 18 -39,827 €159.65 €-6,268,026
21. Nov 18 Sell John Donahoe Individual 19. Nov 18 19. Nov 18 -15,560 €141.02 €-2,194,294
22. Aug 18 Sell Michael Scarpelli Individual 21. Aug 18 21. Aug 18 -30,037 €159.17 €-4,766,157
22. May 18 Sell Frank Slootman Individual 18. May 18 18. May 18 -5,442 €147.50 €-802,717
18. May 18 Sell Frank Slootman Individual 16. May 18 16. May 18 -31,716 €145.41 €-4,600,726
15. May 18 Sell Michael Scarpelli Individual 11. May 18 14. May 18 -32,961 €149.51 €-4,909,032
X
Management checks
We assess ServiceNow's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ServiceNow has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. The company offers information technology (IT) service management applications, as well as digital workflow products for customer service, human resources, security operations, integrated risk management, and other enterprise departments. It operates the Now platform that offers workflow automation, electronic service catalogs and portals, configuration management systems, data benchmarking, performance analytics, encryption, and collaboration and development tools. The company also provides IT service management product suite for enterprise’s employees, customers, and partners; IT operations management product that connects a customer’s physical and cloud-based IT infrastructure with applications and platforms; IT Asset Management product to automate IT asset lifecycles with workflows; IT business management product suite to manage IT priorities; and enterprise development operations product for developers’ toolchain. In addition, it offers customer service management product for customer service cases and requests; human resources service delivery product; security operations product for security operations management requirements of third-party; governance, risk, and compliance product to create policies and controls; and field service management application. Further, the company provides professional services, training services and certification programs, and customer support services. It serves enterprises in industries, such as financial services, consumer products, IT services, healthcare, government, education, and technology. The company sells its products through its direct sales team, as well as through resale partners. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

Details
Name: ServiceNow, Inc.
4S0
Exchange: DB
Founded: 2004
$38,320,760,090
180,500,000
Website: http://www.servicenow.com
Address: ServiceNow, Inc.
2225 Lawson Lane,
Santa Clara,
California, 95054,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE NOW Common Stock New York Stock Exchange US USD 29. Jun 2012
DB 4S0 Common Stock Deutsche Boerse AG DE EUR 29. Jun 2012
LSE 0L5N Common Stock London Stock Exchange GB USD 29. Jun 2012
BMV NOWW * Common Stock Bolsa Mexicana de Valores MX MXN 29. Jun 2012
Number of employees
Current staff
Staff numbers
8,154
ServiceNow employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 21:36
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/13
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.