NYSE:NOW

Stock Analysis Report

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Executive Summary

ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. More Details


Snowflake Analysis

Outstanding track record with high growth potential.


Similar Companies

Share Price & News

How has ServiceNow's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NOW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NOW's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

NOW

-0.7%

US Software

0.6%

US Market


1 Year Return

65.9%

NOW

39.4%

US Software

21.0%

US Market

Return vs Industry: NOW exceeded the US Software industry which returned 42.5% over the past year.

Return vs Market: NOW exceeded the US Market which returned 22% over the past year.


Shareholder returns

NOWIndustryMarket
7 Day0.6%-0.7%0.6%
30 Day-2.5%1.0%4.2%
90 Day-2.0%1.7%12.4%
1 Year65.9%65.9%40.3%39.4%23.7%21.0%
3 Year264.4%264.4%126.6%119.3%47.4%37.6%
5 Year591.2%591.2%255.6%237.5%131.6%105.9%

Long-Term Price Volatility Vs. Market

How volatile is ServiceNow's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

141.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NOW ($514.34) is trading above our estimate of fair value ($375.05)

Significantly Below Fair Value: NOW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NOW is poor value based on its PE Ratio (141x) compared to the US Software industry average (55.4x).

PE vs Market: NOW is poor value based on its PE Ratio (141x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: NOW is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: NOW is overvalued based on its PB Ratio (37.5x) compared to the US Software industry average (9.7x).


Next Steps

Future Growth

How is ServiceNow forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

33.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOW's forecast earnings growth (33% per year) is above the savings rate (2%).

Earnings vs Market: NOW's earnings (33% per year) are forecast to grow faster than the US market (21.6% per year).

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

Revenue vs Market: NOW's revenue (19.1% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: NOW's revenue (19.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NOW's Return on Equity is forecast to be high in 3 years time (30.6%)


Next Steps

Past Performance

How has ServiceNow performed over the past 5 years?

75.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOW has high quality earnings.

Growing Profit Margin: NOW's current net profit margins (16.6%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: NOW has become profitable over the past 5 years, growing earnings by 75.7% per year.

Accelerating Growth: NOW's earnings growth over the past year (1591.4%) exceeds its 5-year average (75.7% per year).

Earnings vs Industry: NOW earnings growth over the past year (1591.4%) exceeded the Software industry 14.3%.


Return on Equity

High ROE: NOW's Return on Equity (26.2%) is considered high.


Next Steps

Financial Health

How is ServiceNow's financial position?


Financial Position Analysis

Short Term Liabilities: NOW's short term assets ($4.0B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: NOW's short term assets ($4.0B) exceed its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: NOW's debt to equity ratio (63.8%) is considered high.

Reducing Debt: NOW's debt to equity ratio has reduced from 90.2% to 63.8% over the past 5 years.

Debt Coverage: NOW's debt is well covered by operating cash flow (89.3%).

Interest Coverage: NOW earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NOW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NOW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NOW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NOW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NOW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Bill McDermott (58 yo)

1.17yrs

Tenure

US$42,584,257

Compensation

Mr. William R. McDermott, also known as Bill, has been the President, CEO and Director of ServiceNow Inc. since November 15, 2019. Mr. McDermott has been a Director of Fisker, Inc. since October 2020 and p...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD42.58M) is above average for companies of similar size in the US market ($USD10.54M).

Compensation vs Earnings: Insufficient data to compare Bill's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
William McDermott
President1.17yrsUS$42.58m0.0083%
$ 8.4m
Chirantan Desai
Chief Product Officer4.08yrsUS$10.62m0.016%
$ 16.3m
Gina Mastantuono
Chief Financial Officer1yrno data0.0019%
$ 2.0m
Fay Goon
Principal Accounting Officer1.83yrsno data0.0013%
$ 1.3m
Chris Bedi
Chief Information Officer6yrsno datano data
Lisa Banks
Vice President of Financeno datano datano data
Russell Elmer
General Counsel & Secretary3yrsno data0.0043%
$ 4.3m
Alan Marks
Chief Marketing & Communications Officer4yrsno datano data
Gabrielle Toledano
Chief Talent Officerno datano datano data
Lara Caimi
Chief Customer & Partner Officer3.17yrsno datano data
Kevin Haverty
Chief Revenue Officer0.50yrno data0.0098%
$ 9.9m
Arun Balasubramanian
MD of India & SAARC1.5yrsno datano data

2.4yrs

Average Tenure

53yo

Average Age

Experienced Management: NOW's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William McDermott
President1.17yrsUS$42.58m0.0083%
$ 8.4m
Jeffrey Miller
Lead Independent Director3.25yrsUS$404.94k0.024%
$ 24.2m
Frederic Luddy
Founder & Chairman of the Board2.75yrsUS$364.94k0.24%
$ 243.1m
Susan Bostrom
Independent Director6.5yrsUS$386.94k0.0024%
$ 2.4m
Jonathan Chadwick
Independent Director4.25yrsUS$394.94k0.0027%
$ 2.7m
Dennis Woodside
Independent Director2.75yrsUS$371.94k0.0017%
$ 1.7m
Anita Sands
Independent Director6.5yrsUS$379.94k0.0039%
$ 3.9m
Teresa Briggs
Independent Director1.83yrsUS$441.31k0.00051%
$ 511.6k
Paul Chamberlain
Independent Director4.25yrsUS$379.94k0.0045%
$ 4.5m
Lawrence Jackson
Independent Director0.25yrno datano data

3.0yrs

Average Tenure

58yo

Average Age

Experienced Board: NOW's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

ServiceNow, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ServiceNow, Inc.
  • Ticker: NOW
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$100.322b
  • Shares outstanding: 195.05m
  • 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
SNOWWBAG (Wiener Boerse AG)YesCommon StockATEURJun 2012
4S0ETLX (Eurotlx)YesCommon StockITEURJun 2012
N1OW34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 50 REPR 1 COM NPVBRBRLOct 2020

Biography

ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. The company offers information technology (...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/14 23:26
End of Day Share Price2021/01/14 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.