ServiceNow (NOW) Stock Analysis
This is a peer-relative look at ServiceNow (NOW): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | NOW |
|---|---|
| Name | ServiceNow Inc. |
| Country/Region | United States |
| GICS Sector | Information Technology |
| GICS Industry Group | Software & Services |
| GICS Industry | Software |
| GICS Sub-Industry | Systems Software |
| Market Capitalization | 145.07 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | June 29, 2012 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: NOW | Industry group median |
|---|---|---|
| Total Return (1Y) | -22.89% | -11.35% |
| Total Return (3Y, Annualized) | 9.02% | 10.93% |
| Total Return (5Y, Annualized) | 2.18% | -6.75% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: NOW | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 57.44% | 61.10% |
| Beta (5Y) | 0.97 | 1.14 |
| Max Drawdown (5Y) | -64.54% | -76.51% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: NOW | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.48 | -0.28 |
| Sortino Ratio (1Y) | -0.67 | -0.40 |
Profitability
ROE (TTM)
ServiceNow (NOW) posts ROE of 14.24%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
NOW
Software & Services industry group
14.24%
Group distribution
- Max
- 62.27%
- Q3
- 18.32%
- NOW
- 14.24%
- Median
- 5.48%
- Q1
- -13.62%
- Min
- -59.77%
Largest peers
- ORCL
- 41.19%
- PLTR
- 38.10%
- MSFT
- 34.04%
- SAP
- 18.32%
- NOW
- 14.24%
- PANW
- 1.74%
- CRWD
- 1.46%
Net Margin (TTM)
ServiceNow (NOW) keeps 11.34% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
NOW
Software & Services industry group
11.34%
Group distribution
- Max
- 41.43%
- Q3
- 14.96%
- NOW
- 11.34%
- Median
- 4.26%
- Q1
- -5.85%
- Min
- -30.95%
Largest peers
- PLTR
- 49.01%
- MSFT
- 40.31%
- ORCL
- 26.36%
- SAP
- 20.41%
- NOW
- 11.34%
- PANW
- 2.67%
- CRWD
- 0.83%
Operating Margin (TTM)
ServiceNow (NOW) turns 4.06% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
NOW
Software & Services industry group
4.06%
Group distribution
- Max
- 47.12%
- Q3
- 15.51%
- Median
- 4.87%
- NOW
- 4.06%
- Q1
- -6.45%
- Min
- -39.13%
Largest peers
- PLTR
- 47.12%
- MSFT
- 45.11%
- ORCL
- 35.63%
- SAP
- 27.62%
- PANW
- 5.40%
- NOW
- 4.06%
- CRWD
- -2.26%
Profitability Metrics
| Metric | Current stock: NOW | Industry group median |
|---|---|---|
| ROE (TTM) | 14.24% | 5.48% |
| ROA (TTM) | 4.25% | 2.06% |
| Net Margin (TTM) | 11.34% | 4.26% |
| Operating Margin (TTM) | 4.06% | 4.87% |
| Gross Margin (TTM) | 74.77% | 69.30% |
Growth
Revenue Growth
ServiceNow (NOW) grew revenue 20.88%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
ServiceNow (NOW) grew earnings per share 22.08%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: NOW | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 20.88% | 14.62% |
| Revenue Growth (3Y CAGR) | 22.38% | 13.63% |
| EPS Growth (YoY) | 22.08% | 7.79% |
| EPS Growth (3Y CAGR) | 73.46% | 18.25% |
Financial Strength
Current Ratio (MRQ)
ServiceNow (NOW) has current ratio of 0.70, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
NOW
Software & Services industry group
0.70
Group distribution
- Max
- 5.11
- Q3
- 2.74
- Median
- 1.63
- Q1
- 1.02
- NOW
- 0.70
- Min
- 0.03
Largest peers
- PLTR
- 7.23
- CRWD
- 1.57
- MSFT
- 1.23
- ORCL
- 1.17
- SAP
- 1.15
- PANW
- 0.87
- NOW
- 0.70
Debt / Equity (MRQ)
ServiceNow (NOW) has debt-to-equity ratio of 0.68, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
NOW
Software & Services industry group
0.68
Group distribution
- Max
- 2.52
- Q3
- 1.10
- NOW
- 0.68
- Median
- 0.35
- Q1
- 0.06
- Min
- 0.00
Largest peers
- ORCL
- 2.52
- NOW
- 0.68
- MSFT
- 0.29
- SAP
- 0.22
- CRWD
- 0.16
- PANW
- 0.09
- PLTR
- 0.02
Financial Strength Metrics
| Metric | Current stock: NOW | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.70 | 1.63 |
| Debt / Equity (MRQ) | 0.68 | 0.35 |
| Net Debt / EBITDA | 1.31 | 0.01 |
Dividends
Dividend Yield (TTM)
ServiceNow (NOW) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
NOW
Software & Services industry group
0.00%
Group distribution
- NOW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- ORCL
- 1.41%
- SAP
- 1.16%
- MSFT
- 0.68%
- NOW
- 0.00%
- PLTR
- 0.00%
- PANW
- 0.00%
- CRWD
- 0.00%
Dividend Payout Ratio (TTM)
ServiceNow (NOW) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
NOW
Software & Services industry group
0.00%
Group distribution
- NOW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- SAP
- 37.70%
- ORCL
- 31.35%
- MSFT
- 19.83%
- NOW
- 0.00%
- PLTR
- 0.00%
- PANW
- 0.00%
- CRWD
- 0.00%
Dividend Metrics
| Metric | Current stock: NOW | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
ServiceNow (NOW) trades at P/E ratio of 87.70, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
NOW
Software & Services industry group
87.70
Group distribution
- Max
- 121.09
- NOW
- 87.70
- Q3
- 60.42
- Median
- 31.84
- Q1
- 17.70
- Min
- 6.45
Largest peers
- CRWD
- 5,260.20
- PANW
- 1,009.57
- PLTR
- 180.17
- NOW
- 87.70
- MSFT
- 30.15
- SAP
- 27.97
- ORCL
- 21.53
P/S Ratio (TTM)
ServiceNow (NOW) trades at 9.85 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
NOW
Software & Services industry group
9.85
Group distribution
- Max
- 19.98
- NOW
- 9.85
- Q3
- 9.41
- Median
- 4.36
- Q1
- 2.30
- Min
- 0.02
Largest peers
- PLTR
- 81.59
- CRWD
- 49.91
- PANW
- 28.77
- MSFT
- 12.11
- NOW
- 9.85
- SAP
- 6.58
- ORCL
- 5.80
P/B Ratio (MRQ)
ServiceNow (NOW) trades at 11.59 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
NOW
Software & Services industry group
11.59
Group distribution
- Max
- 19.30
- NOW
- 11.59
- Q3
- 9.10
- Median
- 4.43
- Q1
- 1.98
- Min
- -3.90
Largest peers
- SAP
- 70.66
- CRWD
- 52.78
- PLTR
- 51.38
- PANW
- 11.97
- NOW
- 11.59
- MSFT
- 9.09
- ORCL
- 6.72
Valuation Metrics
| Metric | Current stock: NOW | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 87.70 | 31.84 |
| P/S Ratio (TTM) | 9.85 | 4.36 |
| P/B Ratio (MRQ) | 11.59 | 4.43 |
| Free Cash Flow Yield (TTM) | 3.55% | 3.63% |