ServiceNow Inc.
Find Ratings ReportsSERVICENOW INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. SERVICENOW INC has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 51.58% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 2437.0 | 1940.0 |
EBITDA ($mil) | 409.0 | 258.0 |
EBIT ($mil) | 282.0 | 161.0 |
Net Income ($mil) | 295.0 | 150.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 4884.0 | 4285.0 |
Total Assets ($mil) | 17387.0 | 13299.0 |
Total Debt ($mil) | 2284.0 | 2232.0 |
Equity ($mil) | 7628.0 | 5032.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 83.96 | 83.51 |
EBITDA Margin | 16.78 | 13.29 |
Operating Margin | 11.57 | 8.3 |
Sales Turnover | 0.52 | 0.54 |
Return on Assets | 9.95 | 2.44 |
Return on Equity | 22.69 | 6.46 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.06 | 1.11 |
Debt/Capital | 0.23 | 0.31 |
Interest Expense | 6.0 | 7.0 |
Interest Coverage | 47.0 | 23.0 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 204.72 | 202.88 |
Div / share | 0.0 | 0.0 |
EPS | 1.43 | 0.74 |
Book value / share | 37.26 | 24.8 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1183916.0 | 1227940.0 |
BUY. SERVICENOW INC's P/E ratio indicates a significant premium compared to an average of 47.17 for the Publishing Industries subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 20.92 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 11.80. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, SERVICENOW INC proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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NOW 92.69 | Peers 47.17 | NOW 46.96 | Peers 33.15 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. NOW is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. NOW is trading at a significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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NOW 49.04 | Peers 32.16 | NOW 1.63 | Peers 1.66 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. NOW is trading at a significant premium to its peers. |
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. NOW trades at a valuation on par to its peers. |
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Price/Book |
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Earnings Growth |
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NOW 20.92 | Peers 11.80 | NOW 425.62 | Peers 148.13 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. NOW is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. NOW is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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NOW 17.79 | Peers 12.32 | NOW 23.82 | Peers 12.66 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. NOW is trading at a significant premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. NOW has a sales growth rate that significantly exceeds its peers. |
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