NOW

ServiceNowNYSE:NOW Stock Report

Market Cap

US$129.0b

7D

0.5%

1Y

43.7%

Updated

18 Sep, 2021

Data

Company Financials +
NOW fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance2/6
Financial Health5/6
Dividends0/6

NOW Overview

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

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 less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NOW's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

NOW

0.9%

US Software

-0.6%

US Market


1 Year Return

43.7%

NOW

42.9%

US Software

33.8%

US Market

Return vs Industry: NOW matched the US Software industry which returned 42.9% over the past year.

Return vs Market: NOW exceeded the US Market which returned 33.8% over the past year.


Shareholder returns

NOWIndustryMarket
7 Day0.5%0.9%-0.6%
30 Day10.9%3.5%2.0%
90 Day22.0%12.5%4.7%
1 Year43.7%43.7%43.7%42.9%35.8%33.8%
3 Year243.2%243.2%141.4%135.1%60.0%50.1%
5 Year740.6%740.6%371.6%348.4%123.0%98.7%

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

ServiceNow Fundamentals Summary

How do ServiceNow's earnings and revenue compare to its market cap?
NOW fundamental statistics
Market CapUS$128.99b
Earnings (TTM)US$170.50m
Revenue (TTM)US$5.17b

756.5x

P/E Ratio

24.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOW income statement (TTM)
RevenueUS$5.17b
Cost of RevenueUS$1.16b
Gross ProfitUS$4.01b
ExpensesUS$3.84b
EarningsUS$170.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.87
Gross Margin77.59%
Net Profit Margin3.30%
Debt/Equity Ratio48.3%

How did NOW perform over the long term?

See historical performance and comparison

Valuation

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

756.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NOW ($651.03) is trading above our estimate of fair value ($440.99)

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 (756.5x) compared to the US Software industry average (55.9x).

PE vs Market: NOW is poor value based on its PE Ratio (756.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: NOW is poor value based on its PEG Ratio (14.9x)


Price to Book Ratio

PB vs Industry: NOW is overvalued based on its PB Ratio (39.4x) compared to the US Software industry average (7.6x).


Future Growth

How is ServiceNow forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

50.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOW's forecast earnings growth (50.8% per year) is above the savings rate (2%).

Earnings vs Market: NOW's earnings (50.8% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: NOW's revenue (20.4% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: NOW's revenue (20.4% 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 (31.1%)


Past Performance

How has ServiceNow performed over the past 5 years?

70.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOW has high quality earnings.

Growing Profit Margin: NOW's current net profit margins (3.3%) are lower than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: NOW has become profitable over the past 5 years, growing earnings by 70.7% per year.

Accelerating Growth: NOW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NOW had negative earnings growth (-76.6%) over the past year, making it difficult to compare to the Software industry average (22.1%).


Return on Equity

High ROE: NOW's Return on Equity (5.2%) is considered low.


Financial Health

How is ServiceNow's financial position?


Financial Position Analysis

Short Term Liabilities: NOW's short term assets ($4.2B) exceed its short term liabilities ($3.9B).

Long Term Liabilities: NOW's short term assets ($4.2B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: NOW's debt to equity ratio (48.3%) is considered high.

Reducing Debt: NOW's debt to equity ratio has reduced from 151.2% to 48.3% over the past 5 years.

Debt Coverage: NOW's debt is well covered by operating cash flow (123.5%).

Interest Coverage: NOW's interest payments on its debt are well covered by EBIT (72x coverage).


Balance Sheet


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?

2.5yrs

Average management tenure


CEO

Bill McDermott (59 yo)

1.83yrs

Tenure

US$25,124,056

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 ($USD25.12M) is above average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

Experienced Management: NOW's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: NOW's board of directors are considered experienced (3.4 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 3.3%.


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$128.992b
  • Shares outstanding: 198.14m
  • Website: https://www.servicenow.com

Number of Employees


Location

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

Listings


Biography

ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. It operates the Now platform that offers wo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:08
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.