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.


Snowflake Analysis

Exceptional growth potential with outstanding track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NOW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

NOW

-3.9%

US Software

1.2%

US Market


1 Year Return

67.0%

NOW

39.4%

US Software

16.8%

US Market

Return vs Industry: NOW exceeded the US Software industry which returned 39.4% over the past year.

Return vs Market: NOW exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

NOWIndustryMarket
7 Day-3.3%-3.9%1.2%
30 Day4.9%-3.2%4.9%
90 Day14.6%15.6%20.0%
1 Year67.0%67.0%40.4%39.4%19.3%16.8%
3 Year284.8%284.8%146.6%138.1%43.7%34.4%
5 Year457.1%457.1%236.6%216.5%75.5%56.6%

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?

109.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NOW ($421.36) is trading above our estimate of fair value ($346.72)

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 (109.7x) compared to the US Software industry average (54.8x).

PE vs Market: NOW is poor value based on its PE Ratio (109.7x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: NOW is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: NOW is overvalued based on its PB Ratio (32.6x) compared to the US Software industry average (7.4x).


Next Steps

Future Growth

How is ServiceNow forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?

30.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOW's forecast earnings growth (30.7% per year) is above the savings rate (2.2%).

Earnings vs Market: NOW's earnings (30.7% per year) are forecast to grow faster than the US market (24% per year).

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

Revenue vs Market: NOW's revenue (20.6% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: NOW's revenue (20.6% 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 (30.1%)


Next Steps

Past Performance

How has ServiceNow performed over the past 5 years?

70.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOW has high quality earnings.

Growing Profit Margin: NOW's current net profit margins (18.4%) are higher than last year (0.1%).


Past Earnings Growth Analysis

Earnings Trend: NOW has become profitable over the past 5 years, growing earnings by 70.6% per year.

Accelerating Growth: NOW's earnings growth over the past year (23051.2%) exceeds its 5-year average (70.6% per year).

Earnings vs Industry: NOW earnings growth over the past year (23051.2%) exceeded the Software industry 11.5%.


Return on Equity

High ROE: NOW's Return on Equity (29.4%) is considered high.


Next Steps

Financial Health

How is ServiceNow's financial position?


Financial Position Analysis

Short Term Liabilities: NOW's short term assets ($3.3B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: NOW's short term assets ($3.3B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: NOW's debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: NOW's debt to equity ratio has reduced from 98.9% to 28.1% over the past 5 years.

Debt Coverage: NOW's debt is well covered by operating cash flow (214.2%).

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?

2.8yrs

Average management tenure


CEO

Bill McDermott (58 yo)

0.75

Tenure

US$42,584,257

Compensation

Mr. William R. McDermott, also known as Bill, serves as President, CEO and Director of ServiceNow Inc. since November 15, 2019. He served as Member of Executive Board at SAP SE from October 2019 to Novembe ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD42.58M) is above average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William McDermott
President0.75yrUS$42.58m0.0021%
$ 1.7m
Patricia Wadors
Chief Talent Officer2.92yrsUS$5.49mno data
David Schneider
President Emeritus6.17yrsUS$10.52m0.019%
$ 15.6m
Chirantan Desai
Chief Product Officer3.67yrsUS$10.62m0.013%
$ 10.5m
Gina Mastantuono
Chief Financial Officer0.58yrno data0.000080%
$ 64.7k
Fay Goon
Principal Accounting Officer1.42yrsno data0.00036%
$ 290.9k
Chris Bedi
Chief Information Officer5.58yrsno datano data
Lisa Banks
Vice President of Financeno datano datano data
Russell Elmer
General Counsel & Secretary2.58yrsno data0.0034%
$ 2.7m
Alan Marks
Chief Marketing & Communications Officer3.58yrsno datano data
Lara Caimi
Chief Customer & Partner Officer2.75yrsno datano data
Kevin Haverty
Chief Revenue Officer0.083yrno data0.0085%
$ 6.9m

2.8yrs

Average Tenure

53.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
William McDermott
President0.75yrUS$42.58m0.0021%
$ 1.7m
Jeffrey Miller
Lead Independent Director2.83yrsUS$404.94k0.025%
$ 19.8m
Frederic Luddy
Chairman of the Board2.33yrsUS$364.94k0.33%
$ 270.4m
Susan Bostrom
Independent Director6.08yrsUS$386.94k0.0032%
$ 2.6m
Jonathan Chadwick
Independent Director3.83yrsUS$394.94k0.0046%
$ 3.7m
Tamar Yehoshua
Independent Director1.42yrsUS$439.38k0.00081%
$ 654.6k
Dennis Woodside
Independent Director2.33yrsUS$371.94k0.0017%
$ 1.4m
Anita Sands
Independent Director6.08yrsUS$379.94k0.0039%
$ 3.2m
Teresa Briggs
Independent Director1.42yrsUS$441.31k0.00052%
$ 420.2k
Paul Chamberlain
Independent Director3.83yrsUS$379.94k0.0046%
$ 3.7m

2.6yrs

Average Tenure

57yo

Average Age

Experienced Board: NOW's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: NOW insiders have 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 2.3%.


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$80.817b
  • Shares outstanding: 191.80m
  • 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

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 Analysis2020/08/12 00:15
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
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.