ServiceNow, Inc.

  • Market Cap: Large Cap
  • Industry: Software Products
  • ISIN: US81762P1021
USD
95.04
-0.44 (-0.46%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Intuit, Inc.
Adobe, Inc.
ServiceNow, Inc.
Microsoft Corp.
Oracle Corp.
Salesforce, Inc.
Shopify, Inc.
Palo Alto Networks, Inc.
Synopsys, Inc.
Activision Blizzard, Inc.
VMware, Inc.

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)
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to ServiceNow, Inc. should be less than 10%
  2. 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%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

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%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

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%
stock-recommendationTechnicals

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
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

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 years
MOJO 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 periods
MOJO 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 periods
MOJO Watch
Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Profit
Highest at USD 822 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin
Highest at 21.8 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at USD 734 MM
in the last five periods
MOJO 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 periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (USD MM)

Depreciation
Highest at USD 258 MM
in the last five periods
MOJO 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 periods
MOJO 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 periods
MOJO Watch
Increased income from non business activities may not be sustainable

Non Operating income