Why is ServiceNow, Inc. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Healthy long term growth as Net Sales has grown by an annual rate of 24.98% and Operating profit at 52.14%
3
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 4,699 MM
- NET SALES(Q) Highest at USD 3,215 MM
- RAW MATERIAL COST(Y) Fallen by 1.94% (YoY)
How much should you hold?
- Overall Portfolio exposure to ServiceNow, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is ServiceNow, Inc. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
ServiceNow, Inc.
-51.61%
0.57
39.00%
S&P 500
25.41%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
24.05%
EBIT Growth (5y)
57.82%
EBIT to Interest (avg)
27.36
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.49
Sales to Capital Employed (avg)
0.97
Tax Ratio
17.67%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
89.43%
ROCE (avg)
20.64%
ROE (avg)
11.50%
Valuation Key Factors 
Factor
Value
P/E Ratio
57
Industry P/E
Price to Book Value
8.02
EV to EBIT
51.00
EV to EBITDA
38.16
EV to Capital Employed
12.00
EV to Sales
7.48
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
23.52%
ROE (Latest)
14.19%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
11What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 5,437 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 9.09 times
NET SALES(Q)
Highest at USD 3,770 MM
OPERATING PROFIT(Q)
Highest at USD 822 MM
OPERATING PROFIT MARGIN(Q)
Highest at 21.8 %
PRE-TAX PROFIT(Q)
Highest at USD 734 MM
NET PROFIT(Q)
Highest at USD 511.51 MM
-5What is not working for the Company
ROCE(HY)
Lowest at 16.07%
INTEREST(Q)
At USD 6 MM has Grown at 20%
DEBT-EQUITY RATIO
(HY)
Highest at -23.52 %
Here's what is working for ServiceNow, Inc.
Operating Cash Flow
Highest at USD 5,437 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 3,770 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Debtors Turnover Ratio
Highest at 9.09 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Operating Profit
Highest at USD 822 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 21.8 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 734 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 511.51 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Depreciation
Highest at USD 258 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 258 MM has Grown at 40.22%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for ServiceNow, Inc.
Interest
At USD 6 MM has Grown at 20%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at -23.52 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income
Highest at USD 0.26 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






