NYSE:NOW

Stock Analysis Report

Executive Summary

ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide.

Snowflake

Fundamentals

Exceptional growth potential with adequate 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


Market Performance


7 Day Return

-10.3%

NOW

-4.4%

US Software

0.07%

US Market


1 Year Return

34.2%

NOW

19.3%

US Software

8.9%

US Market

Return vs Industry: NOW exceeded the US Software industry which returned 19.3% over the past year.

Return vs Market: NOW exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

NOWIndustryMarket
7 Day-10.3%-4.4%0.07%
30 Day-14.5%-4.4%-0.3%
90 Day-20.1%-9.3%-1.6%
1 Year34.2%34.2%21.1%19.3%11.3%8.9%
3 Year189.4%189.4%108.2%99.8%46.3%36.8%
5 Year251.1%251.1%157.9%139.3%62.1%44.3%

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

Valuation

Is ServiceNow undervalued compared to its fair value and its price relative to the market?

2.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOW ($228.34) is trading below our estimate of fair value ($234.35)

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 (14851.4x) compared to the Software industry average (45x).

PE vs Market: NOW is poor value based on its PE Ratio (14851.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: NOW is poor value based on its PEG Ratio (222.8x)


Price to Book Ratio

PB vs Industry: NOW is overvalued based on its PB Ratio (33.9x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

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

66.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOW's forecast earnings growth (66.7% per year) is above the savings rate (2.7%).

Earnings vs Market: NOW's earnings (66.7% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NOW's revenue (22.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: NOW's revenue (22.1% 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 (36.9%)


Next Steps

Past Performance

How has ServiceNow performed over the past 5 years?

23.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NOW has become profitable over the past 5 years, growing earnings by 23.2% 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 (19.1%).


Return on Equity

High ROE: NOW's Return on Equity (0.2%) is considered low.


Return on Assets

ROA vs Industry: NOW's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: NOW is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is ServiceNow's financial position?


Financial Position Analysis

Short Term Liabilities: NOW's short term assets ($2.4B) exceeds its short term liabilities ($2.2B)

Long Term Liabilities: NOW's short term assets (2.4B) exceeds its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: NOW's debt to equity ratio (53.8%) is considered high

Reducing Debt: NOW's debt to equity ratio has reduced from 107.7% to 53.8% over the past 5 years.

Debt Coverage: NOW's debt is well covered by operating cash flow (153.3%).

Interest Coverage: Insufficient data to determine if NOW's interest payments on its debt are well covered by EBIT.


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 3.601420x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

2.8yrs

Average management tenure


CEO

John Donahoe (58yo)

2.5yrs

Tenure

US$16,682,644

Compensation

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  ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD16.68M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

54yo

Average Age

Experienced Management: NOW's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

55yo

Average Age

Experienced Board: NOW's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: NOW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$183,04020 Aug 19
Patricia Wadors
EntityIndividual
Role
Senior Key Executive
Chief Talent Officer
Shares704
Max PriceUS$260.00
SellUS$8,052,68415 Aug 19
Michael Scarpelli
EntityIndividual
Shares30,945
Max PriceUS$261.09
SellUS$510,03830 Jul 19
Frederic Luddy
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,770
Max PriceUS$288.16
SellUS$187,94021 May 19
Patricia Wadors
EntityIndividual
Role
Senior Key Executive
Chief Talent Officer
Shares704
Max PriceUS$266.96
SellUS$7,210,57620 May 19
Michael Scarpelli
EntityIndividual
Shares25,899
Max PriceUS$280.87
SellUS$7,030,00027 Feb 19
Michael Scarpelli
EntityIndividual
Shares29,553
Max PriceUS$237.88
SellUS$306,44026 Feb 19
Anita Sands
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,304
Max PriceUS$235.00
SellUS$1,629,22105 Feb 19
Jeffrey Miller
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares7,397
Max PriceUS$220.25
SellUS$7,132,48330 Nov 18
Michael Scarpelli
EntityIndividual
Shares39,827
Max PriceUS$181.67
SellUS$2,513,22221 Nov 18
John Donahoe
EntityIndividual
Role
Chief Executive Officer
President
Shares15,560
Max PriceUS$161.52

Ownership Breakdown


Management Team

  • John Donahoe (58yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$16.68m
  • Russ Elmer (54yo)

    General Counsel & Secretary

    • Tenure: 1.8yrs
  • Pat Wadors (54yo)

    Chief Talent Officer

    • Tenure: 0yrs
    • Compensation: US$4.52m
  • David Schneider (51yo)

    President of Global Customer Operations

    • Tenure: 5.3yrs
    • Compensation: US$7.33m
  • Alan Marks (56yo)

    Chief Communications Officer

    • Tenure: 2.8yrs
  • CJ Desai (48yo)

    Chief Product Officer

    • Tenure: 2.8yrs
    • Compensation: US$7.42m
  • Dan Rogers

    Chief Marketing Officer

    • Tenure: 3.3yrs
  • Chris Bedi

    Chief Information Officer

    • Tenure: 4.8yrs
  • Fay Goon (41yo)

    Principal Accounting Officer

    • Tenure: 0.6yrs
  • Lisa Banks

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Jeff Miller (68yo)

    Lead Independent Director

    • Tenure: 2yrs
    • Compensation: US$404.99k
  • Fred Luddy (64yo)

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$350.38k
  • John Donahoe (58yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$16.68m
  • Sue Bostrom (59yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$386.99k
  • Jonathan Chadwick (53yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$388.92k
  • Tamar Yehoshua (54yo)

    Independent Director

    • Tenure: 0.6yrs
  • Dennis Woodside (50yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$411.44k
  • Anita Sands (43yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$379.99k
  • Teresa Briggs

    Independent Director

    • Tenure: 0.6yrs
  • Paul Chamberlain (55yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$379.99k

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$42.805b
  • Shares outstanding: 187.46m
  • Website: https://www.servicenow.com

Number of Employees


Location

  • ServiceNow, Inc.
  • 2225 Lawson Lane
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOWNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2012
4S0DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2012
0L5NLSE (London Stock Exchange)YesCommon StockGBUSDJun 2012
NOWW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 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 manage ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:32
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.