Is ServiceNow Stock a Good Investment?
ServiceNow Investment Advice | NOW |
- Examine ServiceNow's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research ServiceNow's leadership team and their track record. Good management can help ServiceNow navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Systems Software space and any emerging trends that could impact ServiceNow's business and its evolving consumer preferences.
- Compare ServiceNow's performance and market position to its competitors. Analyze how ServiceNow is positioned in terms of product offerings, innovation, and market share.
- Check if ServiceNow pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about ServiceNow's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in ServiceNow stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if ServiceNow is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine ServiceNow Stock
Researching ServiceNow's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 92.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.91. ServiceNow recorded earning per share (EPS) of 6.81. The entity had not issued any dividends in recent years.
To determine if ServiceNow is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding ServiceNow's research are outlined below:
| ServiceNow generated a negative expected return over the last 90 days | |
| ServiceNow is unlikely to experience financial distress in the next 2 years | |
| Over 92.0% of the company shares are owned by institutional investors | |
| Latest headline from zacks.com: ServiceNow Declines More Than Market Some Information for Investors |
ServiceNow Quarterly Gross Profit |
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ServiceNow uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in ServiceNow. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to ServiceNow's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 24th of April 2024 Upcoming Quarterly Report | View | |
| 24th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 22nd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact ServiceNow's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises ServiceNow's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2015-01-28 | 2014-12-31 | 0.02 | 0.03 | 0.01 | 50 | ||
2014-01-29 | 2013-12-31 | -0.01 | -0.02 | -0.01 | 100 | ||
2013-07-31 | 2013-06-30 | -0.05 | -0.06 | -0.01 | 20 | ||
2017-07-26 | 2017-06-30 | 0.2 | 0.22 | 0.02 | 10 | ||
2016-04-20 | 2016-03-31 | 0.07 | 0.09 | 0.02 | 28 | ||
2014-10-22 | 2014-09-30 | 0.01 | 0.03 | 0.02 | 200 | ||
2013-04-24 | 2013-03-31 | -0.03 | -0.01 | 0.02 | 66 | ||
2013-10-23 | 2013-09-30 | -0.02 | 0.01 | 0.03 | 150 |
ServiceNow Target Price Consensus
ServiceNow target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. ServiceNow's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 43 | Strong Buy |
Most ServiceNow analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand ServiceNow stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of ServiceNow, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationServiceNow Target Price Projection
ServiceNow's current and average target prices are 824.12 and 1,095, respectively. The current price of ServiceNow is the price at which ServiceNow is currently trading. On the other hand, ServiceNow's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
ServiceNow Market Quote on 20th of March 2025
Target Price
Analyst Consensus On ServiceNow Target Price
ServiceNow Analyst Ratings
ServiceNow's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about ServiceNow stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of ServiceNow's financials, market performance, and future outlook by experienced professionals. ServiceNow's historical ratings below, therefore, can serve as a valuable tool for investors.Know ServiceNow's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as ServiceNow is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading ServiceNow backward and forwards among themselves. ServiceNow's institutional investor refers to the entity that pools money to purchase ServiceNow's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Ubs Asset Mgmt Americas Inc | 2024-12-31 | 2.7 M | Norges Bank | 2024-12-31 | 2.5 M | Capital Research & Mgmt Co - Division 3 | 2024-12-31 | 2.4 M | Jennison Associates Llc | 2024-12-31 | 2.4 M | Nuveen Asset Management, Llc | 2024-12-31 | 2.3 M | Northern Trust Corp | 2024-12-31 | 2.3 M | Dz Bank Ag Deutsche Zentral-genossenschaftsbank Frankfurt Am Main | 2024-12-31 | 1.8 M | Amvescap Plc. | 2024-12-31 | 1.7 M | Fisher Asset Management, Llc | 2024-12-31 | 1.7 M | Vanguard Group Inc | 2024-12-31 | 19.2 M | Blackrock Inc | 2024-12-31 | 18.3 M |
ServiceNow's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 174.3 B.Market Cap |
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ServiceNow's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.08 | 0.08 | |
| Return On Capital Employed | 0.11 | 0.12 | |
| Return On Assets | 0.07 | 0.07 | |
| Return On Equity | 0.15 | 0.16 |
Determining ServiceNow's profitability involves analyzing its financial statements and using various financial metrics to determine if ServiceNow is a good buy. For example, gross profit margin measures ServiceNow's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of ServiceNow's profitability and make more informed investment decisions.
ServiceNow's Earnings Breakdown by Geography
Please note, the imprecision that can be found in ServiceNow's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of ServiceNow. Check ServiceNow's Beneish M Score to see the likelihood of ServiceNow's management manipulating its earnings.
Evaluate ServiceNow's management efficiency
ServiceNow has Return on Asset of 0.0462 % which means that on every $100 spent on assets, it made $0.0462 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1653 %, implying that it generated $0.1653 on every 100 dollars invested. ServiceNow's management efficiency ratios could be used to measure how well ServiceNow manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to climb to 0.08 in 2025. Return On Capital Employed is likely to climb to 0.12 in 2025. At this time, ServiceNow's Fixed Asset Turnover is fairly stable compared to the past year. Return On Assets is likely to climb to 0.07 in 2025, whereas Intangibles To Total Assets are likely to drop 0.05 in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 46.65 | 48.98 | |
| Tangible Book Value Per Share | 39.45 | 41.42 | |
| Enterprise Value Over EBITDA | 93.28 | 72.97 | |
| Price Book Value Ratio | 22.73 | 16.47 | |
| Enterprise Value Multiple | 93.28 | 72.97 | |
| Price Fair Value | 22.73 | 16.47 | |
| Enterprise Value | 195.2 B | 204.9 B |
The management team at ServiceNow has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Beta 1.034 |
Basic technical analysis of ServiceNow Stock
As of the 20th of March, ServiceNow has the Risk Adjusted Performance of (0.14), variance of 6.48, and Coefficient Of Variation of (590.99). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of ServiceNow, as well as the relationship between them. Please validate ServiceNow risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and kurtosis to decide if ServiceNow is priced more or less accurately, providing market reflects its prevalent price of 824.12 per share. Given that ServiceNow has information ratio of (0.14), we advise you to double-check ServiceNow's current market performance to make sure the company can sustain itself at a future point.ServiceNow's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific ServiceNow insiders, such as employees or executives, is commonly permitted as long as it does not rely on ServiceNow's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases ServiceNow insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Russell Elmer over a month ago Disposition of 2511 shares by Russell Elmer of ServiceNow at 1012.09 subject to Rule 16b-3 | ||
William McDermott over six months ago Disposition of 324 shares by William McDermott of ServiceNow at 806.62 subject to Rule 16b-3 | ||
Gina Mastantuono over six months ago Acquisition by Gina Mastantuono of 176 shares of ServiceNow subject to Rule 16b-3 | ||
Tzitzon Nicholas over six months ago Disposition of 1857 shares by Tzitzon Nicholas of ServiceNow at 829.68 subject to Rule 16b-3 | ||
Susan Bostrom over six months ago Acquisition by Susan Bostrom of 428 shares of ServiceNow subject to Rule 16b-3 | ||
Tzitzon Nicholas over six months ago Disposition of 128 shares by Tzitzon Nicholas of ServiceNow subject to Rule 16b-3 | ||
Russell Elmer over six months ago Disposition of 3707 shares by Russell Elmer of ServiceNow subject to Rule 16b-3 | ||
Christopher Bedi over six months ago Disposition of tradable shares by Christopher Bedi of ServiceNow at 765.0 subject to Rule 16b-3 |
ServiceNow's Outstanding Corporate Bonds
ServiceNow issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. ServiceNow uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most ServiceNow bonds can be classified according to their maturity, which is the date when ServiceNow has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| US81762PAE25 Corp BondUS81762PAE25 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| US81761LAB80 Corp BondUS81761LAB80 | View |
Understand ServiceNow's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing ServiceNow's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.14) | |||
| Market Risk Adjusted Performance | (0.33) | |||
| Mean Deviation | 1.79 | |||
| Coefficient Of Variation | (590.99) | |||
| Standard Deviation | 2.55 | |||
| Variance | 6.48 | |||
| Information Ratio | (0.14) | |||
| Jensen Alpha | (0.34) | |||
| Total Risk Alpha | (0.23) | |||
| Treynor Ratio | (0.34) | |||
| Maximum Drawdown | 14.05 | |||
| Value At Risk | (4.82) | |||
| Potential Upside | 2.61 | |||
| Skewness | (1.55) | |||
| Kurtosis | 5.1 |
| Risk Adjusted Performance | (0.14) | |||
| Market Risk Adjusted Performance | (0.33) | |||
| Mean Deviation | 1.79 | |||
| Coefficient Of Variation | (590.99) | |||
| Standard Deviation | 2.55 | |||
| Variance | 6.48 | |||
| Information Ratio | (0.14) | |||
| Jensen Alpha | (0.34) | |||
| Total Risk Alpha | (0.23) | |||
| Treynor Ratio | (0.34) | |||
| Maximum Drawdown | 14.05 | |||
| Value At Risk | (4.82) | |||
| Potential Upside | 2.61 | |||
| Skewness | (1.55) | |||
| Kurtosis | 5.1 |
Consider ServiceNow's intraday indicators
ServiceNow intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of ServiceNow stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 59707.32 | |||
| Daily Balance Of Power | (1.05) | |||
| Rate Of Daily Change | 0.98 | |||
| Day Median Price | 818.72 | |||
| Day Typical Price | 820.52 | |||
| Price Action Indicator | (4.60) | |||
| Period Momentum Indicator | (20.00) | |||
| Relative Strength Index | 37.41 |
ServiceNow Corporate Filings
8K | 10th of March 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 3rd of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 5th of February 2025 Other Reports | ViewVerify | |
10K | 30th of January 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
ServiceNow Stock media impact
Far too much social signal, news, headlines, and media speculation about ServiceNow that are available to investors today. That information is available publicly through ServiceNow media outlets and privately through word of mouth or via ServiceNow internal channels. However, regardless of the origin, that massive amount of ServiceNow data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of ServiceNow news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of ServiceNow relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to ServiceNow's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive ServiceNow alpha.
ServiceNow Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards ServiceNow can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
ServiceNow Historical Investor Sentiment
Investor biases related to ServiceNow's public news can be used to forecast risks associated with an investment in ServiceNow. The trend in average sentiment can be used to explain how an investor holding ServiceNow can time the market purely based on public headlines and social activities around ServiceNow. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
ServiceNow's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for ServiceNow and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average ServiceNow news discussions. The higher the estimate score, the more favorable the investor's outlook on ServiceNow.
ServiceNow Maximum Pain Price Across June 20th 2025 Option Contracts
ServiceNow's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of ServiceNow close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of ServiceNow's options.
ServiceNow Corporate Directors
| Jeffrey Miller | Lead Independent Director | Profile | |
| Tamar Yehoshua | Independent Director | Profile | |
| Jonathan Chadwick | Independent Director | Profile | |
| Anita Sands | Independent Director | Profile |
Additional Tools for ServiceNow Stock Analysis
When running ServiceNow's price analysis, check to measure ServiceNow's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ServiceNow is operating at the current time. Most of ServiceNow's value examination focuses on studying past and present price action to predict the probability of ServiceNow's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ServiceNow's price. Additionally, you may evaluate how the addition of ServiceNow to your portfolios can decrease your overall portfolio volatility.