ServiceNow
Market Cap
US$65.4b
Last Updated
2020/02/23 02:19 UTC
Data Sources
Company Financials +
Executive Summary
ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -29% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet with proven track record.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.3%
NOW
-2.7%
US Software
-1.1%
US Market
1 Year Return
46.6%
NOW
35.5%
US Software
17.9%
US Market
Return vs Industry: NOW exceeded the US Software industry which returned 35.5% over the past year.
Return vs Market: NOW exceeded the US Market which returned 17.9% over the past year.
Shareholder returns
| NOW | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.3% | -2.7% | -1.1% |
| 30 Day | 11.3% | 5.4% | 1.4% |
| 90 Day | 23.1% | 13.0% | 6.9% |
| 1 Year | 46.6%46.6% | 36.9%35.5% | 20.3%17.9% |
| 3 Year | 275.2%275.2% | 144.6%134.3% | 47.8%38.3% |
| 5 Year | 351.7%351.7% | 213.3%190.8% | 71.9%53.0% |
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
2 weeks ago | Simply Wall St
Here’s why ServiceNow, Inc.’s (NYSE:NOW) Returns On Capital Matters So Much1 month ago | Simply Wall St
Is ServiceNow, Inc.'s (NYSE:NOW) 2.4% ROE Worse Than Average?1 month ago | Simply Wall St
What Is ServiceNow, Inc.'s (NYSE:NOW) Share Price Doing?Valuation
Is ServiceNow undervalued compared to its fair value and its price relative to the market?
7.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NOW ($344.48) is trading below our estimate of fair value ($373.29)
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 (102.5x) compared to the Software industry average (49.4x).
PE vs Market: NOW is poor value based on its PE Ratio (102.5x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: NOW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NOW is overvalued based on its PB Ratio (30.7x) compared to the US Software industry average (5.9x).
Next Steps
Future Growth
How is ServiceNow forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?
-29.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOW's earnings are forecast to decline over the next 3 years (-29% per year).
Earnings vs Market: NOW's earnings are forecast to decline over the next 3 years (-29% per year).
High Growth Earnings: NOW's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NOW's revenue (18.9% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: NOW's revenue (18.9% 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 (27.9%)
Next Steps
Past Performance
How has ServiceNow performed over the past 5 years?
49.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NOW has high quality earnings.
Growing Profit Margin: NOW became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: NOW has become profitable over the past 5 years, growing earnings by 49.4% per year.
Accelerating Growth: NOW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: NOW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (18.4%).
Return on Equity
High ROE: NOW's Return on Equity (29.5%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is ServiceNow's financial position?
Financial Position Analysis
Short Term Liabilities: NOW's short term assets ($2.8B) exceed its short term liabilities ($2.8B).
Long Term Liabilities: NOW's short term assets ($2.8B) exceed its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: NOW's debt to equity ratio (32.7%) is considered satisfactory.
Reducing Debt: NOW's debt to equity ratio has reduced from 103.4% to 32.7% over the past 5 years.
Balance Sheet
Inventory Level: NOW has a low level of unsold assets or inventory.
Debt Coverage by Assets: NOW's debt is covered by short term assets (assets are 4.1x debt).
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.
Stable Cash Runway: NOW is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: NOW is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is ServiceNow's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate NOW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate NOW'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 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?
2.6yrs
Average management tenure
CEO
Bill McDermott (57yo)
0.3yrs
Tenure
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 ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President of Global Customer Operations | 5.7yrs | US$7.33m | 0.021% $13.8m | |
| Chief Product Officer | 3.2yrs | US$7.42m | 0.022% $14.7m | |
| Chief Talent Officer | 0yrs | US$4.52m | no data | |
| President | 0.3yrs | no data | 0.0019% $1.2m | |
| Chief Financial Officer | 0.08yrs | no data | no data | |
| Principal Accounting Officer | 0.9yrs | no data | 0.0021% $1.4m | |
| Chief Information Officer | 5.1yrs | no data | no data | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| General Counsel & Secretary | 2.1yrs | no data | 0.0039% $2.6m | |
| Chief Communications Officer | 3.1yrs | no data | no data |
2.6yrs
Average Tenure
52.5yo
Average Age
Experienced Management: NOW's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.3yrs | no data | 0.0019% $1.2m | |
| Lead Independent Director | 2.3yrs | US$404.99k | 0.030% $19.4m | |
| Chairman of the Board | 2.1yrs | US$350.38k | 0.41% $270.3m | |
| Director | 2.8yrs | US$16.68m | 0.037% $24.2m | |
| Independent Director | 5.6yrs | US$386.99k | 0.0026% $1.7m | |
| Independent Director | 3.3yrs | US$388.92k | 0.0040% $2.6m | |
| Independent Director | 1.8yrs | US$411.44k | 0.0011% $719.2k | |
| Independent Director | 5.6yrs | US$379.99k | 0.0033% $2.2m | |
| Independent Director | 0.9yrs | no data | 0.00018% $117.7k | |
| Independent Director | 3.3yrs | US$379.99k | 0.0040% $2.6m |
2.6yrs
Average Tenure
57yo
Average Age
Experienced Board: NOW's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NOW insiders have sold more shares than they have bought 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 4.8%.
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$65.382b
- Shares outstanding: 189.80m
- Website: https://www.servicenow.com
Number of Employees
Location
- ServiceNow, Inc.
- 2225 Lawson Lane
- Santa Clara
- California
- 95054
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NOW | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 2012 |
| 4S0 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 2012 |
| 0L5N | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jun 2012 |
| NOWW * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 2012 |
| SNOW | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jun 2012 |
| 4S0 | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jun 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 management applications; and 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, training, and customer support services; and certification programs. It serves enterprises in industries, such as financial services, consumer products, IT services, healthcare, government, education, and technology. The company sells its products through direct sales team and resale partners. It has strategic security alliance with Tenable, Inc. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. The company was founded in 2004 and is headquartered in Santa Clara, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 02:19 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.