ServiceNow
ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. The last earnings update was 19 days ago. More info.
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- ServiceNow has significant price volatility in the past 3 months.
NOW Share Price and Events
7 Day Returns
1 Year Returns
NOW Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| ServiceNow (NOW) | 2.6% | 23.6% | 49.4% | 52.5% | 329.5% | 240.9% |
| US Software | 1.8% | 8.6% | 7.5% | 23.1% | 111% | 125.1% |
| US Market | 1.2% | 6.6% | 1.2% | 0.9% | 44.3% | 41.3% |
1 Year Return vs Industry and Market
- NOW outperformed the Software industry which returned 23.1% over the past year.
- NOW outperformed the Market in United States of America which returned 0.9% over the past year.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for ServiceNow.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 33 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 7.3% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.12 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.116 (1 + (1- 21%) (1.57%)) |
1.13 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.13 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.13 * 7.27%) |
10.94% |
Discounted Cash Flow Calculation for NYSE:NOW 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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 954.43 | 1,238.73 | 1,283.14 | 1,582.54 | 1,984.26 |
| Source | Analyst x18 | Analyst x19 | Analyst x4 | Analyst x3 | Analyst x3 |
|
Present Value Discounted (@ 10.94%) |
860.29 | 1,006.43 | 939.70 | 1,044.65 | 1,180.65 |
| Present value of next 5 years cash flows | $5,031.73 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $1,984.26 × (1 + 2.73%) ÷ (10.94% – 2.73%) |
$24,822.96 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $24,822.96 ÷ (1 + 10.94%)5 |
$14,769.86 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $5,031.73 + $14,769.86 |
$19,801.59 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $19,801.59 / 179.31 |
$110.44 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $110.44 |
| Current discount | Discount to share price of
$234.89
= -1 x ($234.89 - $110.44) / $110.44 |
-112.7% |
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.
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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $-0.15 |
| NYSE:NOW Share Price ** | NYSE (2019-02-15) in USD | $234.89 |
| United States of America Software Industry PE Ratio | Median Figure of 77 Publicly-Listed Software Companies | 47.36x |
| United States of America Market PE Ratio | Median Figure of 3,045 Publicly-Listed Companies | 16.97x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of ServiceNow.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:NOW Share Price ÷ EPS (both in USD) = 234.89 ÷ -0.15 |
-1564.35x |
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 US Software industry average.
- ServiceNow is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does
ServiceNow's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | -1564.35x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 33 Analysts |
88.2%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 62 Publicly-Listed Software Companies | 2.67x |
| United States of America Market PEG Ratio | Median Figure of 2,115 Publicly-Listed Companies | 1.36x |
*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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $6.18 |
| NYSE:NOW Share Price * | NYSE (2019-02-15) in USD | $234.89 |
| United States of America Software Industry PB Ratio | Median Figure of 217 Publicly-Listed Software Companies | 5.58x |
| United States of America Market PB Ratio | Median Figure of 5,122 Publicly-Listed Companies | 1.82x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:NOW Share Price ÷ Book Value per Share (both in USD) = 234.89 ÷ 6.18 |
38x |
* 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 US Software industry average.
Value checks
We assess ServiceNow's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) 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 33 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!
Earnings growth vs Low Risk Savings
- ServiceNow's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- ServiceNow's earnings growth is expected to exceed the United States of America market average.
- ServiceNow's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:NOW Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 33 Analysts | 88.2% |
| NYSE:NOW Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 33 Analysts | 18.9% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 19.2% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 11.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 33 Analyst Estimates (S&P Global) | See Below |
| 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 | 5,527 | 1,908 | 274 | 7 |
| 2020-12-31 | 4,392 | 1,541 | 237 | 32 |
| 2019-12-31 | 3,428 | 1,170 | -3 | 33 |
| 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 | 1,933 | 643 | -149 |
| 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 | 160 | -452 |
| 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.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 33 Analyst Estimates (S&P Global) | See Below |
All data from ServiceNow Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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 | 0.40 | 1.64 | -1.31 | 10.00 |
| 2019-12-31 | -0.07 | 0.70 | -1.05 | 12.00 |
| 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 | -0.87 |
| 2017-09-30 | -0.78 |
| 2017-06-30 | -0.87 |
| 2017-03-31 | -0.84 |
| 2016-12-31 | -2.75 |
| 2016-09-30 | -2.81 |
| 2016-06-30 | -2.87 |
| 2016-03-31 | -2.99 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess ServiceNow's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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 US Software industry average as it is not currently profitable.
Earnings and Revenue History
All data from ServiceNow Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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 | 1,933.03 | -149.13 | 1,154.75 | 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 | 1,390.51 | -451.80 | 858.40 | 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 US 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.
Past performance checks
We assess ServiceNow's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from ServiceNow Company Filings, last reported 1 month ago.
| 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 | 584.13 | 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.
Financial health checks
We assess ServiceNow's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) ServiceNow has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
$2,000 of
ServiceNow
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- 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.
| 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 33 Analyst Estimates (S&P Global) | See Below |
| United States of America Software Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1998 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| 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.
Income/ dividend checks
We assess ServiceNow's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| COMPENSATION | $41,698,568 |
| AGE | 57 |
| TENURE AS CEO | 1.8 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 United States of America.
Management Team Tenure
Average tenure and age of the ServiceNow management team in years:
- The tenure for the ServiceNow management team is about average.
Management Team
John Donahoe
President
$42M
57
1.8 yrs
Michael Scarpelli
Chief Financial Officer
$7M
51
7.5 yrs
David Schneider
President of Global Customer Operations
$7M
50
4.7 yrs
CJ Desai
Chief Product Officer
$23M
47
2.2 yrs
Chris Bedi
Chief Information Officer
4.1 yrs
Russ Elmer
General Counsel
53
1.1 yrs
Alan Marks
Chief Communications Officer
55
2.1 yrs
Dan Rogers
Chief Marketing Officer
2.6 yrs
Pat Wadors
Chief Talent Officer
53
2.1 yrs
Dave Wright
Chief Innovation Officer
8.1 yrs
Board of Directors Tenure
Average tenure and age of the ServiceNow board of directors in years:
- The average tenure for the ServiceNow board of directors is less than 3 years, this suggests a new board.
Board of Directors
Fred Luddy
Chairman of the Board
$6M
63
1.1 yrs
John Donahoe
President
$42M
57
1.8 yrs
Ron Codd
Independent Director
$395K
63
7 yrs
Jeff Miller
Lead Independent Director
$389K
67
1.3 yrs
Sue Bostrom
Independent Director
$384K
58
4.6 yrs
Anita Sands
Independent Director
$380K
42
4.6 yrs
Paul Chamberlain
Independent Director
$379K
54
2.3 yrs
Jonathan Chadwick
Independent Director
$382K
52
2.3 yrs
Dennis Woodside
Director
49
0.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 05. Feb 19 | Sell | Jeffrey Miller | Individual | 01. Feb 19 | 01. Feb 19 | -7,397 | $220.25 | $-1,629,221 | ||
| 30. Nov 18 | Sell | Michael Scarpelli | Individual | 29. Nov 18 | 29. Nov 18 | -39,827 | $181.67 | $-7,132,483 | ||
| 21. Nov 18 | Sell | John Donahoe | Individual | 19. Nov 18 | 19. Nov 18 | -15,560 | $161.52 | $-2,513,222 | ||
| 22. Aug 18 | Sell | Michael Scarpelli | Individual | 21. Aug 18 | 21. Aug 18 | -30,037 | $183.46 | $-5,493,495 | ||
| 22. May 18 | Sell | Frank Slootman | Individual | 18. May 18 | 18. May 18 | -5,442 | $173.60 | $-944,707 | ||
| 18. May 18 | Sell | Frank Slootman | Individual | 16. May 18 | 16. May 18 | -31,716 | $171.37 | $-5,422,187 | ||
| 15. May 18 | Sell | Michael Scarpelli | Individual | 11. May 18 | 14. May 18 | -32,961 | $178.95 | $-5,875,562 | ||
| 01. Mar 18 | Sell | Jeffrey Miller | Individual | 27. Feb 18 | 27. Feb 18 | -12,821 | $163.90 | $-2,083,463 | ||
Management checks
We assess ServiceNow's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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
Read This Before Buying ServiceNow, Inc. (NYSE:NOW) Shares
So we'll take a look at whether insiders have been buying or selling shares in ServiceNow, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In the last twelve months, the biggest single sale by an insider was when Chief Financial Officer Michael Scarpelli sold US$7.1m worth of shares at a price of US$182 per share.
Simply Wall St - – Full articleDoes ServiceNow, Inc.'s (NYSE:NOW) Debt Level Pose A Problem?
its financial health remains the key to continued success. … This article will examine ServiceNow’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further
Simply Wall St - – Full articleServiceNow Inc (NYSE:NOW): When Will It Breakeven?
The US$31.5b market-cap posted a loss in its most recent financial year of -US$149m and a latest trailing-twelve-month loss of -US$114m shrinking the gap between loss and breakeven. … I’ve put together a brief outline of industry analyst expectations for NOW, its year of breakeven and its implied growth rate … According to the industry analysts covering NOW, breakeven is near.
Simply Wall St - – Full articleBefore Investing In ServiceNow Inc (NYSE:NOW), Consider This
ServiceNow Inc (NYSE:NOW) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … Free cash flow (FCF) is the amount of cash ServiceNow has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations
Simply Wall St - – Full articleWhat You Must Know About ServiceNow Inc's (NYSE:NOW) Financial Strength
the key to extending previous success is in the health of the company’s financials. … I will provide an overview of ServiceNow’s financial liquidity and leverage to give you an idea of ServiceNow’s position to take advantage of potential acquisitions or comfortably endure future downturns … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis
Simply Wall St - – Full articleAnalysts Expect Breakeven For ServiceNow Inc (NYSE:NOW)
With the latest financial year loss of -US$149.13m and a trailing-twelve month of -US$116.99m, the US$32.13b market-cap alleviates its loss by moving closer towards its target of breakeven. … I’ve put together a brief outline of industry analyst expectations for NOW, its year of breakeven and its implied growth rate … According to the industry analysts covering NOW, breakeven is near.
Simply Wall St - – Full articleServiceNow Inc (NYSE:NOW): Exploring Free Cash Flows
The two ways to assess whether ServiceNow’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow. … Free Cash Flow = Operating Cash Flows – Net Capital Expenditure Free Cash Flow Yield = Free Cash Flow / Enterprise Value where Enterprise Value = Market Capitalisation + Net Debt Along with a positive operating cash flow, ServiceNow also generates a positive free cash flow. … Current +1 year +2 year Operating Cash Flow (OCF) US$705.30M US$915.85M US$1.24B OCF Growth Year-On-Year 29.85% 35.31% OCF Growth From Current Year 75.70% Next Steps: Low free cash flow yield means you are not currently well-compensated for the risk you’re taking on by holding onto ServiceNow relative to a well-diversified market index.
Simply Wall St - – Full articleHow Should You Think About ServiceNow Inc's (NYSE:NOW) Risks?
A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … With a beta of 1.08, ServiceNow is a stock that tends to experience more gains than the market during a growth phase and also a bigger reduction in value compared to the market during a broad downturn. … However, this is the opposite to what NOW’s actual beta value suggests, which is higher stock volatility relative to the market.
Simply Wall St - – Full articleWhen Should You Buy ServiceNow Inc (NYSE:NOW)?
The company's stock saw a decent share price growth in the teens level on the NYSE over the last few months. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … If you believe NOW should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.
Simply Wall St - – Full articleWhat does ServiceNow Inc's (NYSE:NOW) Balance Sheet Tell Us About Its Future?
NOW has built up its total debt levels in the last twelve months, from US$507.81M to US$1.17B , which is made up of current and long term debt. … On top of this, NOW has produced cash from operations of US$642.83M over the same time period, resulting in an operating cash to total debt ratio of 54.78%, meaning that NOW’s operating cash is sufficient to cover its debt. … Next Steps: NOW’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.
Simply Wall St - – Full articleCompany Info
Map
Description
ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. The company offers service management solutions for customer service, human resources, security operations, and other enterprise departments. It operates ServiceNow platform that provides workflow automation, electronic service catalogs and portals, configuration management systems, data benchmarking, performance analytics, encryption, and collaboration and development tools. The company also provides information technology (IT) solutions, such as IT service management product suite for enterprise’s employees, customers, and partners; IT operations management that connects a customer’s physical and cloud-based IT infrastructure with applications and platforms; and IT business management product suite that enables customers to manage their IT priorities. In addition, it offers customer service management product for customer service cases and requests; human resources service delivery product; and security operations product for security operations management requirements of third-party. Further, the company provides professional services, training services and certification programs, and customer support services. It serves enterprises in various industries, including financial services, consumer products, IT services, healthcare, government, education, and technology. The company sells products through its direct sales team, as well as indirectly through third-party channels by partnering with systems integrators, managed services providers, and 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. |
| NOW | |
| Exchange: | NYSE |
| Founded: | 2004 |
| $42,117,031,077 | |
| 179,305,339 | |
| 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
Industry
| Systems Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/18 03:06 |
| End of day share price update: | 2019/02/15 00:00 |
| Last estimates confirmation: | 2019/02/14 |
| Last earnings filing: | 2019/01/30 |
| 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.
