| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 6/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
NOW Overview
ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide.
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: NOW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NOW's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
1.4%
NOW
-0.7%
US Software
-1.8%
US Market
1 Year Return
39.0%
NOW
35.4%
US Software
31.5%
US Market
Return vs Industry: NOW matched the US Software industry which returned 38.3% over the past year.
Return vs Market: NOW exceeded the US Market which returned 33% over the past year.
Shareholder returns
| NOW | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.4% | -0.7% | -1.8% |
| 30 Day | 8.9% | -0.06% | -0.9% |
| 90 Day | 18.9% | 8.8% | 0.8% |
| 1 Year | 39.0%39.0% | 36.0%35.4% | 33.5%31.5% |
| 3 Year | 231.1%231.1% | 135.2%129.1% | 57.5%47.8% |
| 5 Year | 727.7%727.7% | 361.5%338.8% | 119.1%95.3% |
Long-Term 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
6 days ago | Simply Wall St
ServiceNow (NYSE:NOW) Could Easily Take On More Debt4 weeks ago | Simply Wall St
Is ServiceNow, Inc. (NYSE:NOW) Popular Amongst Institutions?1 month ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In ServiceNow, Inc. (NYSE:NOW)ServiceNow Fundamentals Summary
| NOW fundamental statistics | |
|---|---|
| Market Cap | US$129.62b |
| Earnings (TTM) | US$170.50m |
| Revenue (TTM) | US$5.17b |
760.2x
P/E Ratio25.1x
P/S RatioIs NOW overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| NOW income statement (TTM) | |
|---|---|
| Revenue | US$5.17b |
| Cost of Revenue | US$1.16b |
| Gross Profit | US$4.01b |
| Expenses | US$3.84b |
| Earnings | US$170.50m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.87 |
| Gross Margin | 77.59% |
| Net Profit Margin | 3.30% |
| Debt/Equity Ratio | 48.3% |
How did NOW perform over the long term?
See historical performance and comparisonValuation
Is ServiceNow undervalued compared to its fair value and its price relative to the market?
760.23x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NOW ($654.2) is trading above our estimate of fair value ($440.48)
Significantly Below Fair Value: NOW is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NOW is poor value based on its PE Ratio (760.2x) compared to the US Software industry average (57.2x).
PE vs Market: NOW is poor value based on its PE Ratio (760.2x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
PEG Ratio: NOW is poor value based on its PEG Ratio (15x)
Price to Book Ratio
PB vs Industry: NOW is overvalued based on its PB Ratio (39.6x) compared to the US Software industry average (7.5x).
Future Growth
How is ServiceNow forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
50.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOW's forecast earnings growth (50.8% per year) is above the savings rate (2%).
Earnings vs Market: NOW's earnings (50.8% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NOW's revenue (20.4% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: NOW's revenue (20.4% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NOW's Return on Equity is forecast to be high in 3 years time (31.1%)
Past Performance
How has ServiceNow performed over the past 5 years?
70.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NOW has high quality earnings.
Growing Profit Margin: NOW's current net profit margins (3.3%) are lower than last year (18.4%).
Past Earnings Growth Analysis
Earnings Trend: NOW has become profitable over the past 5 years, growing earnings by 70.7% per year.
Accelerating Growth: NOW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NOW had negative earnings growth (-76.6%) over the past year, making it difficult to compare to the Software industry average (22.1%).
Return on Equity
High ROE: NOW's Return on Equity (5.2%) is considered low.
Financial Health
How is ServiceNow's financial position?
Financial Position Analysis
Short Term Liabilities: NOW's short term assets ($4.2B) exceed its short term liabilities ($3.9B).
Long Term Liabilities: NOW's short term assets ($4.2B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: NOW's debt to equity ratio (48.3%) is considered high.
Reducing Debt: NOW's debt to equity ratio has reduced from 151.2% to 48.3% over the past 5 years.
Debt Coverage: NOW's debt is well covered by operating cash flow (123.5%).
Interest Coverage: NOW's interest payments on its debt are well covered by EBIT (72x coverage).
Balance Sheet
Dividend
What is ServiceNow current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NOW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NOW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NOW's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NOW'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 NOW's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Bill McDermott (59 yo)
1.83yrs
Tenure
US$25,124,056
Compensation
Mr. William R. McDermott, also known as Bill, has been the President, CEO and Director of ServiceNow Inc. since November 15, 2019. Mr. McDermott has been a Director of Fisker, Inc. since October 2020 and p...
CEO Compensation Analysis
Compensation vs Market: Bill's total compensation ($USD25.12M) is above average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: NOW's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: NOW's board of directors are considered experienced (3.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NOW insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.
Top Shareholders
Company Information
ServiceNow, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: ServiceNow, Inc.
- Ticker: NOW
- Exchange: NYSE
- Founded: 2004
- Industry: Systems Software
- Sector: Software
- Market Cap: US$129.620b
- Shares outstanding: 198.14m
- Website: https://www.servicenow.com
Number of Employees
Location
- ServiceNow, Inc.
- 2225 Lawson Lane
- Santa Clara
- California
- 95054
- United States
Listings
Biography
ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. It operates the Now platform that offers wo...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/22 00:18 |
| End of Day Share Price | 2021/09/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.