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ServiceNow

NYSE:NOW
Snowflake Description

Exceptional growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NOW
NYSE
$33B
Market Cap
  1. Home
  2. US
  3. Software
Company description

ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. The last earnings update was 41 days ago. More info.


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NOW Share Price and Events
7 Day Returns
-6.5%
NYSE:NOW
0.3%
US Software
-1.5%
US Market
1 Year Returns
31.9%
NYSE:NOW
19.4%
US Software
-4.2%
US Market
NOW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ServiceNow (NOW) -6.5% 0.2% -7.8% 31.9% 98.3% 211.5%
US Software 0.3% -1.7% -7.9% 19.4% 80.6% 121.2%
US Market -1.5% -5.2% -11.2% -4.2% 27.3% 35.3%
1 Year Return vs Industry and Market
  • NOW outperformed the Software industry which returned 19.4% over the past year.
  • NOW outperformed the Market in United States of America which returned -4.2% over the past year.
Price Volatility
NOW
Industry
5yr Volatility vs Market
Related Companies

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ServiceNow.

NYSE:NOW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 31 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:NOW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Software Unlevered Beta Simply Wall St/ S&P Global 1.15
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.147 (1 + (1- 21%) (2.5%))
1.17
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.17 * 7.05%)
11.2%

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.

NYSE:NOW DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 934.83 1,224.89 1,254.00 1,463.00 1,697.08
Source Analyst x17 Analyst x12 Analyst x1 Analyst x1 Est @ 16%, capped from 33.42%
Present Value
Discounted (@ 11.2%)
840.70 990.62 912.04 956.90 998.23
Present value of next 5 years cash flows $4,698.48
NYSE:NOW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $1,697.08 × (1 + 2.95%) ÷ (11.2% – 2.95%)
$21,184.15
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $21,184.15 ÷ (1 + 11.2%)5
$12,460.56
NYSE:NOW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $4,698.48 + $12,460.56
$17,159.04
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $17,159.04 / 179.31
$95.7
NYSE:NOW Discount to Share Price
Calculation Result
Value per share (USD) From above. $95.70
Current discount Discount to share price of $171.47
= -1 x ($171.47 - $95.70) / $95.70
-79.2%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:NOW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $-0.47
NYSE:NOW Share Price ** NYSE (2018-12-17) in USD $171.47
United States of America Software Industry PE Ratio Median Figure of 74 Publicly-Listed Software Companies 42.81x
United States of America Market PE Ratio Median Figure of 3,017 Publicly-Listed Companies 16.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ServiceNow.

NYSE:NOW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NOW Share Price ÷ EPS (both in USD)

= 171.47 ÷ -0.47

-362.7x

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?
Raw Data
NYSE:NOW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -362.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts
127.5%per year
United States of America Software Industry PEG Ratio Median Figure of 60 Publicly-Listed Software Companies 2.94x
United States of America Market PEG Ratio Median Figure of 2,105 Publicly-Listed Companies 1.16x

*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?
Raw Data
NYSE:NOW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $5.69
NYSE:NOW Share Price * NYSE (2018-12-17) in USD $171.47
United States of America Software Industry PB Ratio Median Figure of 214 Publicly-Listed Software Companies 5.04x
United States of America Market PB Ratio Median Figure of 5,082 Publicly-Listed Companies 1.7x
NYSE:NOW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NOW Share Price ÷ Book Value per Share (both in USD)

= 171.47 ÷ 5.69

30.14x

* 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.
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Value checks
We assess ServiceNow's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. 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 31 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!
Annual Growth Rate
127.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ServiceNow expected to grow at an attractive rate?
  • ServiceNow's earnings growth is expected to exceed the low risk savings rate of 3%.
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
Raw Data
NYSE:NOW Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:NOW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts 127.5%
NYSE:NOW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 31 Analysts 21.1%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 20.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
Raw Data
NYSE:NOW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:NOW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 6,649 1
2021-12-31 5,450 1
2020-12-31 4,278 1,522 193 20
2019-12-31 3,370 1,159 24 31
2018-12-31 2,610 811 -41 31
NYSE:NOW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
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
2015-12-31 1,005 318 -198

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ServiceNow's earnings are expected to grow significantly at over 20% yearly.
  • ServiceNow's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:NOW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 31 Analyst Estimates (S&P Global) See Below

All data from ServiceNow Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NOW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.91 1.14 0.80 5.00
2019-12-31 0.17 0.88 -0.54 10.00
2018-12-31 -0.24 -0.06 -0.40 8.00
NYSE:NOW Past Financials Data
Date (Data in USD Millions) EPS *
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
2015-12-31 -1.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ServiceNow is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess ServiceNow's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ServiceNow has a total score of 6/6, 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
Below we compare ServiceNow's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ServiceNow does not make a profit and their year on year earnings growth rate was negative 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
ServiceNow's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ServiceNow Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NOW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
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
2011-12-31 128.07 -6.12 68.94 11.28

*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.
X
Past performance checks
We assess ServiceNow's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of ServiceNow's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.8x 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.
Raw Data

All data from ServiceNow Company Filings, last reported 2 months ago.

NYSE:NOW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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
2011-12-31 10.75 0.00 68.09
  • ServiceNow's level of debt (79.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1.6% vs 79.8% 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 -23.9% per year.
X
Financial health checks
We assess ServiceNow's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ServiceNow has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0%
Current annual income from ServiceNow dividends. Estimated to be 0% next year.
If you bought $2,000 of ServiceNow shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NYSE:NOW Annualized Past and Future Dividends
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 31 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1983 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:NOW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.00 3.00
2019-12-31 0.00 4.00
2018-12-31 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.
Current Payout to shareholders
What portion of ServiceNow's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as ServiceNow has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of ServiceNow's dividends in 3 years as they are not expected to pay a notable one for United States of America.
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Income/ dividend checks
We assess ServiceNow's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Donahoe
COMPENSATION $41,698,568
AGE 57
TENURE AS CEO 1.7 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:

2.2
Average Tenure
53
Average Age
  • The tenure for the ServiceNow management team is about average.
Management Team

John Donahoe

TITLE
President
COMPENSATION
$42M
AGE
57
TENURE
1.7 yrs

Michael Scarpelli

TITLE
Chief Financial Officer
COMPENSATION
$7M
AGE
51
TENURE
7.3 yrs

David Schneider

TITLE
Chief Revenue Officer
COMPENSATION
$7M
AGE
50
TENURE
4.5 yrs

CJ Desai

TITLE
Chief Product Officer
COMPENSATION
$23M
AGE
47
TENURE
2 yrs

Chris Bedi

TITLE
Chief Information Officer
TENURE
3.9 yrs

Russ Elmer

TITLE
General Counsel
AGE
53
TENURE
0.9 yrs

Alan Marks

TITLE
Chief Communications Officer
AGE
55
TENURE
1.9 yrs

Dan Rogers

TITLE
Chief Marketing Officer
TENURE
2.4 yrs

Pat Wadors

TITLE
Chief Talent Officer
AGE
53
TENURE
1.9 yrs

Dave Wright

TITLE
Chief Innovation Officer
TENURE
7.9 yrs
Board of Directors Tenure

Average tenure and age of the ServiceNow board of directors in years:

2.2
Average Tenure
57
Average Age
  • The average tenure for the ServiceNow board of directors is less than 3 years, this suggests a new board.
Board of Directors

Fred Luddy

TITLE
Chairman of the Board
COMPENSATION
$6M
AGE
63
TENURE
0.9 yrs

John Donahoe

TITLE
President
COMPENSATION
$42M
AGE
57
TENURE
1.7 yrs

Ron Codd

TITLE
Independent Director
COMPENSATION
$395K
AGE
63
TENURE
6.8 yrs

Jeff Miller

TITLE
Lead Independent Director
COMPENSATION
$389K
AGE
67
TENURE
1.2 yrs

Sue Bostrom

TITLE
Independent Director
COMPENSATION
$384K
AGE
58
TENURE
4.4 yrs

Anita Sands

TITLE
Independent Director
COMPENSATION
$380K
AGE
42
TENURE
4.4 yrs

Paul Chamberlain

TITLE
Independent Director
COMPENSATION
$379K
AGE
54
TENURE
2.2 yrs

Jonathan Chadwick

TITLE
Independent Director
COMPENSATION
$382K
AGE
52
TENURE
2.2 yrs

Dennis Woodside

TITLE
Director
AGE
49
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • ServiceNow insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
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
16. Feb 18 Sell Michael Scarpelli Individual 14. Feb 18 14. Feb 18 -25,000 $147.12 $-3,678,108
13. Feb 18 Sell Susan Bostrom Individual 09. Feb 18 09. Feb 18 -7,363 $142.35 $-1,047,492
X
Management checks
We assess ServiceNow's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

External News
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Simply Wall St News

Does 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 -

ServiceNow 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 -

Before 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 -

What 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 -

Analysts 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 -

ServiceNow 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 -

How 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 -

When 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 -

What 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 -

Has ServiceNow Inc (NYSE:NOW) Improved Earnings Growth In Recent Times?

Today I will examine ServiceNow Inc's (NYSE:NOW) latest earnings update (31 December 2017) and compare these figures against its performance over the past couple of years, in addition to how the rest of NOW's industry performed. … Check out our latest analysis for ServiceNow Commentary On NOW's Past Performance I look at the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … For ServiceNow, its most recent earnings (trailing twelve month) is -US$149.13M, which, in comparison to last year’s figure, has become less negative.

Simply Wall St -

Company 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
$32,629,985,591
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
Staff numbers
7,661
ServiceNow employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/18 00:22
End of day share price update: 2018/12/17 00:00
Last estimates confirmation: 2018/12/13
Last earnings filing: 2018/11/07
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


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.