(NOW) ServiceNow - Overview
Sector: Technology | Industry: Software - Application | Exchange: NYSE (USA) | Market Cap: 106.658m USD | Total Return: -50.4% in 12m
Industry Rotation: +9.1
Avg Turnover: 2.17B
EPS Trend: 57.9%
Qual. Beats: -1
Rev. Trend: 99.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
ServiceNow, Inc. (NYSE: NOW) is a global provider of cloud-based software designed to automate and manage enterprise digital workflows. Its core platform delivers solutions across IT service management, employee human resources, customer service, and security operations. The company operates within the Systems Software sub-industry, a sector characterized by high recurring revenue through Software-as-a-Service (SaaS) subscription models.
The company’s technology stack includes specialized tools for asset management, legal operations, and AI-driven recommendations via its ServiceNow Impact suite. ServiceNow integrates generative AI capabilities through strategic collaborations to enhance autonomous agents and data reliability for large-scale government and private sector clients. This business model relies on high switching costs and deep integration into a clients operational infrastructure to maintain long-term contract stability.
For more detailed insights into these operational trends, consider reviewing the latest performance metrics on ValueRay. Founded in 2004 and headquartered in Santa Clara, California, ServiceNow serves diverse industries including healthcare, financial services, and manufacturing through a global network of resale partners and service providers.
- Generative AI product adoption accelerates high-margin subscription revenue growth
- Enterprise cloud spending resilience stabilizes long-term remaining performance obligations
- Platform expansion beyond IT into HR and customer service workflows
- Strategic partnerships with AI hardware providers enhance enterprise automation capabilities
- Global macroeconomic volatility pressures large-scale digital transformation project timelines
| Net Income: 1.76b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.19 > 0.02 and ΔFCF/TA 1.49 > 1.0 |
| NWC/Revenue: -10.89% < 20% (prev 8.82%; Δ -19.71% < -1%) |
| CFO/TA 0.22 > 3% & CFO 5.44b > Net Income 1.76b |
| Net Debt (-2.75b) to EBITDA (3.06b): -0.90 < 3 |
| Current Ratio: 0.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.04b) vs 12m ago -0.67% < -2% |
| Gross Margin: 76.56% > 18% (prev 0.79%; Δ 7.58k% > 0.5%) |
| Asset Turnover: 61.56% > 50% (prev 54.69%; Δ 6.87% > 0%) |
| Interest Coverage Ratio: 96.57 > 6 (EBITDA TTM 3.06b / Interest Expense TTM 23.0m) |
| A: -0.06 (Total Current Assets 8.44b - Total Current Liabilities 9.96b) / Total Assets 24.38b |
| B: 0.23 (Retained Earnings 5.71b / Total Assets 24.38b) |
| C: 0.10 (EBIT TTM 2.22b / Avg Total Assets 22.68b) |
| D: 0.45 (Book Value of Equity 5.72b / Total Liabilities 12.62b) |
| Altman-Z'' Score: 1.49 = BB |
| DSRI: 1.04 (Receivables 1.71b/1.36b, Revenue 13.96b/11.47b) |
| GMI: 1.03 (GM 76.56% / 78.92%) |
| AQI: 1.31 (AQ_t 0.56 / AQ_t-1 0.43) |
| SGI: 1.22 (Revenue 13.96b / 11.47b) |
| TATA: -0.15 (NI 1.76b - CFO 5.44b) / TA 24.38b) |
| Beneish M-Score: -2.79 (Cap -4..+1) = A |
Over the past week, the price has changed by +14.42%, over one month by +2.12%, over three months by -5.16% and over the past year by -50.36%.
- StrongBuy: 31
- Buy: 10
- Hold: 5
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 142.8 | 40.2% |
P/E Forward = 21.7391
P/S = 7.6402
P/B = 8.018
P/EG = 0.8846
Revenue TTM = 13.96b USD
EBIT TTM = 2.22b USD
EBITDA TTM = 3.06b USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 118.0m USD (from shortTermDebt, last quarter)
Debt = 2.43b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -2.75b USD (recalculated: Debt 2.43b - CCE 5.18b)
Enterprise Value = 103.91b USD (106.66b + Debt 2.43b - CCE 5.18b)
Interest Coverage Ratio = 96.57 (Ebit TTM 2.22b / Interest Expense TTM 23.0m)
EV/FCF = 22.43x (Enterprise Value 103.91b / FCF TTM 4.63b)
FCF Yield = 4.46% (FCF TTM 4.63b / Enterprise Value 103.91b)
FCF Margin = 33.19% (FCF TTM 4.63b / Revenue TTM 13.96b)
Net Margin = 12.59% (Net Income TTM 1.76b / Revenue TTM 13.96b)
Gross Margin = 76.56% ((Revenue TTM 13.96b - Cost of Revenue TTM 3.27b) / Revenue TTM)
Gross Margin QoQ = 75.07% (prev 76.63%)
Tobins Q-Ratio = 4.26 (Enterprise Value 103.91b / Total Assets 24.38b)
Interest Expense / Debt = 0.25% (Interest Expense 6.00m / Debt 2.43b)
Taxrate = 30.31% (204.0m / 673.0m)
NOPAT = 1.55b (EBIT 2.22b * (1 - 30.31%))
Current Ratio = 0.85 (Total Current Assets 8.44b / Total Current Liabilities 9.96b)
Debt / Equity = 0.21 (Debt 2.43b / totalStockholderEquity, last quarter 11.73b)
Debt / EBITDA = -0.90 (Net Debt -2.75b / EBITDA 3.06b)
Debt / FCF = -0.59 (Net Debt -2.75b / FCF TTM 4.63b)
Total Stockholder Equity = 11.73b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.75% (Net Income 1.76b / Total Assets 24.38b)
RoE = 14.98% (Net Income TTM 1.76b / Total Stockholder Equity 11.73b)
RoCE = 16.80% (EBIT 2.22b / Capital Employed (Equity 11.73b + L.T.Debt 1.49b))
RoIC = 11.71% (NOPAT 1.55b / Invested Capital 13.22b)
WACC = 9.06% (E(106.66b)/V(109.09b) * Re(9.26%) + D(2.43b)/V(109.09b) * Rd(0.25%) * (1-Tc(0.30)))
Discount Rate = 9.26% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 64.44 | Cagr: 0.21%
[DCF] Terminal Value 78.22% ; FCFF base≈4.25b ; Y1≈5.24b ; Y5≈8.94b
[DCF] Fair Price = 124.9 (EV 126.01b - Net Debt -2.75b = Equity 128.77b / Shares 1.03b; r=9.06% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 57.92 | EPS CAGR: 9.52% | SUE: -2.02 | # QB: -1
Revenue Correlation: 99.81 | Revenue CAGR: 22.67% | SUE: 0.80 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.86 | Chg30d=-10.82% | Revisions=-89% | Analysts=38
EPS next Quarter (2026-09-30): EPS=1.09 | Chg30d=-1.33% | Revisions=-12% | Analysts=37
EPS current Year (2026-12-31): EPS=4.12 | Chg30d=-1.11% | Revisions=-33% | GrowthEPS=+17.5% | GrowthRev=+22.0%
EPS next Year (2027-12-31): EPS=5.03 | Chg30d=+0.15% | Revisions=+5% | GrowthEPS=+21.9% | GrowthRev=+18.5%
[Analyst] Revisions Ratio: -89%