ServiceNow
Market Cap
US$103.9b
Last Updated
2021/04/10 22:25 UTC
Data Sources
Company Financials +
Executive Summary
ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. More Details
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
High growth potential with excellent balance sheet.
Similar Companies
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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: NOW's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
4.5%
NOW
3.4%
US Software
1.6%
US Market
1 Year Return
90.6%
NOW
62.8%
US Software
55.3%
US Market
Return vs Industry: NOW exceeded the US Software industry which returned 62.8% over the past year.
Return vs Market: NOW exceeded the US Market which returned 55.3% over the past year.
Shareholder returns
| NOW | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.5% | 3.4% | 1.6% |
| 30 Day | 5.4% | 6.0% | 4.1% |
| 90 Day | 0.07% | 5.8% | 5.5% |
| 1 Year | 90.6%90.6% | 63.9%62.8% | 58.1%55.3% |
| 3 Year | 217.6%217.6% | 140.9%133.7% | 63.8%53.3% |
| 5 Year | 737.5%737.5% | 300.6%278.3% | 120.2%95.7% |
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
1 week ago | Simply Wall St
ServiceNow (NYSE:NOW) Has A Rock Solid Balance Sheet4 weeks ago | Simply Wall St
ServiceNow, Inc. (NYSE:NOW) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?1 month ago | Simply Wall St
Can You Imagine How Elated ServiceNow's (NYSE:NOW) Shareholders Feel About Its 928% Share Price Gain?Valuation
Is ServiceNow undervalued compared to its fair value and its price relative to the market?
8.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NOW ($530) is trading below our estimate of fair value ($577.74)
Significantly Below Fair Value: NOW is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NOW is poor value based on its PE Ratio (863.6x) compared to the US Software industry average (54x).
PE vs Market: NOW is poor value based on its PE Ratio (863.6x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: NOW is poor value based on its PEG Ratio (22.6x)
Price to Book Ratio
PB vs Industry: NOW is overvalued based on its PB Ratio (36.6x) compared to the US Software industry average (8.7x).
Future Growth
How is ServiceNow forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
38.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOW's forecast earnings growth (38.3% per year) is above the savings rate (2%).
Earnings vs Market: NOW's earnings (38.3% per year) are forecast to grow faster than the US market (18.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NOW's revenue (18.2% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: NOW's revenue (18.2% per year) is forecast to grow slower 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 (29.3%)
Past Performance
How has ServiceNow performed over the past 5 years?
75.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NOW has a large one-off loss of $46.6M impacting its December 31 2020 financial results.
Growing Profit Margin: NOW's current net profit margins (2.6%) are lower than last year (18.1%).
Past Earnings Growth Analysis
Earnings Trend: NOW has become profitable over the past 5 years, growing earnings by 75.3% 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 (-81.1%) over the past year, making it difficult to compare to the Software industry average (16.3%).
Return on Equity
High ROE: NOW's Return on Equity (4.2%) is considered low.
Financial Health
How is ServiceNow's financial position?
Financial Position Analysis
Short Term Liabilities: NOW's short term assets ($4.5B) exceed its short term liabilities ($3.7B).
Long Term Liabilities: NOW's short term assets ($4.5B) exceed its long term liabilities ($2.1B).
Debt to Equity History and Analysis
Debt Level: NOW's debt to equity ratio (57.9%) is considered high.
Reducing Debt: NOW's debt to equity ratio has reduced from 84.6% to 57.9% over the past 5 years.
Debt Coverage: NOW's debt is well covered by operating cash flow (108.9%).
Interest Coverage: NOW earns more interest than it pays, so coverage of interest payments is not a concern.
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?
2.7yrs
Average management tenure
CEO
Bill McDermott (58 yo)
1.42yrs
Tenure
US$42,584,257
Compensation
Mr. William R. McDermott, also known as Bill, has been the President, CEO and Director of ServiceNow Inc. since November 15, 2019. Mr. McDermott has been a Director of Fisker, Inc. since October 2020 and p...
CEO Compensation Analysis
Compensation vs Market: Bill's total compensation ($USD42.58M) is above average for companies of similar size in the US market ($USD10.94M).
Compensation vs Earnings: Insufficient data to compare Bill's compensation with company performance.
Leadership Team
Experienced Management: NOW's management team is considered experienced (2.7 years average tenure).
Board Members
Experienced Board: NOW's board of directors are considered experienced (3.3 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$103.933b
- Shares outstanding: 196.10m
- 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 | 2021/04/10 22:25 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| 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.