Servicenow, Inc.

Technology
Computer Software: Prepackaged Software
www.servicenow.com

Earnings Score
Moat Score
Safety Score

Market Cap $231.21B
PE 173
Debt $1.49B
Cash $1.89B
EV $230.80B
FCF $3.38B

Earnings

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Sales & Net Margins

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Earnings	$1.34B
EBIT	$1.62B
ROE	14%
ROA	9%
FCF	$3.38B
Equity	$9.29B
Growth Stability	79%
PE	173.06
PEG	4.63
PB	24.89
P/FCF	68.47
P/S	22.1
Price/Cash	0.01
Debt/Equity	0.16
Debt/FCF	0.44
Net Margins	13%
Gross Margins	79%
Op. Margins	16%
Earnings CAGR	25%
Sales Growth YoY	22%
Sales Growth QoQ	6%
Sales CAGR	31%
FCF CAGR	67%
Equity CAGR	45%
Earnings Stability	0.15
Earnings Growth YoY	79%
Earnings Growth QoQ	65%

Earnings CAGR 5Y	37%
Sales CAGR 5Y	26%
FCF CAGR 5Y	28%
Equity CAGR 5Y	38%
Earnings CAGR 3Y	23%
Sales CAGR 3Y	23%
FCF CAGR 3Y	26%
Equity CAGR 3Y	43%
Market Cap	$231.21B
Revenue	$10.46B
Assets	$18.43B
Total Debt	$1.49B
Cash	$1.89B
Shares Outstanding	205.64M
EV	230.8B
Earnings Score	10%
Moat Score	91%
Safety Score	95%
Final Score	65%
Working Capital	910M
Current Ratio	1.13
Gross Profit	$8.29B
Shares Growth 3y	1%
Equity Growth QoQ	7%
Equity Growth YoY	29%

Assets & ROA

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Stockholders Equity & ROE

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ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management (ITSM), expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service (PaaS).

SEC Filings

Direct access to Servicenow, Inc. (NOW) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Servicenow, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Servicenow, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 25%

Stability 15%

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Servicenow, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Servicenow, Inc..

Years

Calculation mode

= $2.9T

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$3.4B	$5.6B	$9.4B	$16B	$26B	$44B	$74B	$124B	$207B	$346B	$579B	$5.8T
DCF		$5.1B	$7.8B	$12B	$18B	$27B	$42B	$64B	$97B	$147B	$223B	$2.2T
Value	$2.9T

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-26%	-20%	-32%	-8%	-1%	18%	3%	4%	4%	19%	13%
ROA	-	-9%	-20%	-3%	0%	2%	2%	2%	3%	6%	9%
ROE	-	-35%	-117%	-26%	-2%	29%	4%	6%	6%	23%	14%

Good Net Margins (12.97%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	2.08	9.34	2.38	1.13	0.77	1.2	0.88	0.68	0.55	0.44
Debt over Equity	1.04	0.84	1.31	2.01	0.6	0.35	0.58	0.43	0.3	0.2	0.16
Growth Stability	-	-	-	-	-	-	79%	96%	100%	100%	79%

Good Debt/FCF ratio (0.44)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.16)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (79%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	47%	38%	39%	35%	33%	31%	30%	23%	24%	26%
Earnings YoY growth	-	11%	128%	-67%	-82%	-2K%	-81%	94%	41%	433%	37%
Equity YoY growth	-	32%	-32%	51%	90%	91%	33%	30%	36%	52%	38%
FCF YoY growth	-	169%	-76%	806%	19%	66%	41%	32%	21%	24%	28%