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Also traded in: Germany

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash-to-Debt 1.89
NOW's Cash-to-Debt is ranked lower than
65% of the 1921 Companies
in the Global Software - Application industry.

( Industry Median: 10.13 vs. NOW: 1.89 )
Ranked among companies with meaningful Cash-to-Debt only.
NOW' s Cash-to-Debt Range Over the Past 10 Years
Min: 1.48  Med: No Debt Max: No Debt
Current: 1.89
Equity-to-Asset 0.20
NOW's Equity-to-Asset is ranked lower than
90% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 0.60 vs. NOW: 0.20 )
Ranked among companies with meaningful Equity-to-Asset only.
NOW' s Equity-to-Asset Range Over the Past 10 Years
Min: -0.22  Med: 0.31 Max: 0.51
Current: 0.2
-0.22
0.51
Piotroski F-Score: 6
Altman Z-Score: 5.92
Beneish M-Score: -3.13
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating Margin % -9.40
NOW's Operating Margin % is ranked lower than
85% of the 1862 Companies
in the Global Software - Application industry.

( Industry Median: 4.84 vs. NOW: -9.40 )
Ranked among companies with meaningful Operating Margin % only.
NOW' s Operating Margin % Range Over the Past 10 Years
Min: -65.08  Med: -16.55 Max: 11.4
Current: -9.4
-65.08
11.4
Net Margin % -10.60
NOW's Net Margin % is ranked lower than
84% of the 1863 Companies
in the Global Software - Application industry.

( Industry Median: 3.19 vs. NOW: -10.60 )
Ranked among companies with meaningful Net Margin % only.
NOW' s Net Margin % Range Over the Past 10 Years
Min: -68.56  Med: -19.73 Max: 10.61
Current: -10.6
-68.56
10.61
ROE % -44.12
NOW's ROE % is ranked lower than
94% of the 1803 Companies
in the Global Software - Application industry.

( Industry Median: 6.16 vs. NOW: -44.12 )
Ranked among companies with meaningful ROE % only.
NOW' s ROE % Range Over the Past 10 Years
Min: -94.74  Med: -40.7 Max: -23.12
Current: -44.12
-94.74
-23.12
ROA % -8.28
NOW's ROA % is ranked lower than
84% of the 1927 Companies
in the Global Software - Application industry.

( Industry Median: 2.92 vs. NOW: -8.28 )
Ranked among companies with meaningful ROA % only.
NOW' s ROA % Range Over the Past 10 Years
Min: -57.83  Med: -12.73 Max: 12.28
Current: -8.28
-57.83
12.28
ROC (Joel Greenblatt) % -73.77
NOW's ROC (Joel Greenblatt) % is ranked lower than
84% of the 1883 Companies
in the Global Software - Application industry.

( Industry Median: 23.13 vs. NOW: -73.77 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
NOW' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -1660.72  Med: -145.09 Max: 189.16
Current: -73.77
-1660.72
189.16
3-Year Revenue Growth Rate 39.20
NOW's 3-Year Revenue Growth Rate is ranked higher than
95% of the 1454 Companies
in the Global Software - Application industry.

( Industry Median: 5.30 vs. NOW: 39.20 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
NOW' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: 0  Med: 18.8 Max: 39.2
Current: 39.2
0
39.2
3-Year EBITDA Growth Rate 86.80
NOW's 3-Year EBITDA Growth Rate is ranked higher than
96% of the 1210 Companies
in the Global Software - Application industry.

( Industry Median: 8.40 vs. NOW: 86.80 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
NOW' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: 0  Med: 26 Max: 86.8
Current: 86.8
0
86.8
3-Year EPS without NRI Growth Rate 72.00
NOW's 3-Year EPS without NRI Growth Rate is ranked higher than
91% of the 1098 Companies
in the Global Software - Application industry.

( Industry Median: 7.70 vs. NOW: 72.00 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
NOW' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: 0  Med: 35.5 Max: 72
Current: 72
0
72
GuruFocus has detected 2 Warning Signs with ServiceNow Inc $NOW.
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» NOW's 30-Y Financials

Financials (Next Earnings Date: 2017-07-01 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q2 2016

NOW Guru Trades in Q2 2016

Louis Moore Bacon 65,000 sh (New)
John Burbank 249,780 sh (New)
Jim Simons 119,500 sh (New)
Frank Sands 89,000 sh (New)
RS Investment Management 16,270 sh (New)
Pioneer Investments 134,833 sh (+52.66%)
Ken Fisher 19,572 sh (unchged)
Paul Tudor Jones Sold Out
Dodge & Cox Sold Out
Manning & Napier Advisors, Inc 5,242,350 sh (-2.84%)
Ron Baron 105,181 sh (-11.14%)
» More
Q3 2016

NOW Guru Trades in Q3 2016

Steven Cohen 87,800 sh (New)
Frank Sands 172,500 sh (+93.82%)
Pioneer Investments 183,617 sh (+36.18%)
Ken Fisher 19,688 sh (+0.59%)
John Burbank Sold Out
Jim Simons Sold Out
Manning & Napier Advisors, Inc 5,094,437 sh (-2.82%)
Ron Baron 99,803 sh (-5.11%)
Louis Moore Bacon 50,000 sh (-23.08%)
» More
Q4 2016

NOW Guru Trades in Q4 2016

Paul Tudor Jones 2,785 sh (New)
Jim Simons 123,200 sh (New)
Frank Sands 3,981,417 sh (+2208.07%)
Manning & Napier Advisors, Inc 6,133,757 sh (+20.40%)
Ken Fisher 19,688 sh (unchged)
Steven Cohen Sold Out
Pioneer Investments 179,157 sh (-2.43%)
Ron Baron 76,419 sh (-23.43%)
» More
Q1 2017

NOW Guru Trades in Q1 2017

Paul Tudor Jones 25,255 sh (+806.82%)
Jim Simons 1,072,600 sh (+770.62%)
Frank Sands 5,236,316 sh (+31.52%)
Ken Fisher 22,307 sh (+13.30%)
Louis Moore Bacon Sold Out
Pioneer Investments 178,389 sh (-0.43%)
Ron Baron 75,377 sh (-1.36%)
Manning & Napier Advisors, Inc 3,666,182 sh (-40.23%)
» More
» Details

Insider Trades

Latest Guru Trades with NOW

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Business Description

Industry: Application Software » Software - Application    NAICS: 423430    SIC: 7372
Compare:NAS:SYMC, NAS:CHKP, NYSE:RHT, NYSE:MBLY, NYSE:WDAY, NYSE:PANW, OTCPK:CNSWF, OTCPK:DASTY, NAS:ANSS, OTCPK:SGGEF, NAS:ADSK, NAS:CDNS, NAS:SPLK, NAS:CDK, NAS:OTEX, NAS:AKAM, NYSE:SHOP, NAS:TEAM, NYSE:SQ, OTCPK:LNNFF » details
Traded in other countries:4S0.Germany,
Headquarter Location:USA
ServiceNow Inc is a provider of cloud-based solutions that define, structure, manage and automate services across the enterprise. Its services include a suite of applications built on proprietary platform.

ServiceNow is a software-as-a-service company that develops ITSM software for enterprise-level customers large and small. The firm's service management solutions also reach other areas of the enterprise, including HR, finance, legal and marketing. ServiceNow is also attempting to expand beyond the service management market and into IT operations management, or ITOM, with solutions for cloud provisioning, configuration automation, and event management, among others.

Guru Investment Theses on ServiceNow Inc

Baron Funds Comments on ServiceNow Inc. - May 06, 2016

ServiceNow, Inc. (NYSE:NOW) is a cloud based platform that allows customers to streamline workloads within different verticals of the organization. Originally, the company offered solutions that streamline workflows within the IT Service Management (ITSM), but continuously expanded its offering to other verticals like IT Operation Management (ITOM), Customer Service, Security, HR, Financials and Platform As A Service (PaaS). During 2015, the company was going through internal and external reorganization processes that impacted the internal sales organization and shifted a portion of NOW’s business towards its partners. Though these changes in the company are expected, as the company grows beyond $1 billion in sales, it had a negative impact on billings growth. We believed that the market misunderstood the billings update, its limited long-term impact and added to our position. After better than expected Q1, the stock reacted positively, and we expect a strong year as the sales organization stabilizes. We believe the company is taking the right steps to allow itself to continue its longterm growth towards management’s $4 billion revenue goal, as it expands beyond its original ITSM market and invests in its ecosystem of system integrators, distributors and developers.



From Baron Opportunity Fund first quarter 2016 commentary.







Check out Ron Baron latest stock trades

Baron Funds Comments on ServiceNow Inc. - Nov 10, 2015

During the quarter, the Fund initiated a position in ServiceNow, Inc. (NYSE:NOW), a Software as a Service (SaaS) company that allows customers to manage and automate IT operations. The company has leveraged its superior architecture and product flexibility to rapidly increase its market share within IT Service Management, and it already counts 25% of the Global 2000 as customers. We believe that ServiceNow’s newly introduced products, its outstanding brand recognition and its customers’ need to enhance productivity should allow the company to successfully increase its share within the larger IT Operation Management market. The company’s average contract value within its existing customers grew by 40% last year alone. We believe the company already serves an addressable market of $15 billion annually, which is more than 15 times larger than its current size. We believe that opportunity will continue to expand as ServiceNow introduces new products to service adjacent markets. ServiceNow’s growth is supported by a secular trend of IT spend shifting from legacy on premise solutions towards SaaS offerings as IT environments are becoming increasingly complex. The company has high levels of recurring revenues and generates high customer retention rates of approximately 97%.



From Baron Opportunity Fund's third quarter 2015 letter.



Check out Ron Baron latest stock trades

Top Ranked Articles about ServiceNow Inc

Manning & Napier Buys Stake in ServiceNow Company has no debt with increased revenue growth, free cash flow growth and gross profits over the previous 6 years
Manning & Napier Advisors Inc. purchased a 5,395,730-share stake of ServiceNow Inc. (NYSE:NOW) in the first quarter. Read more...

Ratios

vs
industry
vs
history
Forward PE Ratio 89.29
NOW's Forward PE Ratio is ranked lower than
95% of the 535 Companies
in the Global Software - Application industry.

( Industry Median: 20.20 vs. NOW: 89.29 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PB Ratio 40.49
NOW's PB Ratio is ranked lower than
98% of the 1789 Companies
in the Global Software - Application industry.

( Industry Median: 2.97 vs. NOW: 40.49 )
Ranked among companies with meaningful PB Ratio only.
NOW' s PB Ratio Range Over the Past 10 Years
Min: 14.21  Med: 24.04 Max: 40.8
Current: 40.49
14.21
40.8
PS Ratio 11.42
NOW's PS Ratio is ranked lower than
88% of the 1780 Companies
in the Global Software - Application industry.

( Industry Median: 2.34 vs. NOW: 11.42 )
Ranked among companies with meaningful PS Ratio only.
NOW' s PS Ratio Range Over the Past 10 Years
Min: 5.4  Med: 12.6 Max: 22.15
Current: 11.42
5.4
22.15
Price-to-Free-Cash-Flow 121.50
NOW's Price-to-Free-Cash-Flow is ranked lower than
98% of the 677 Companies
in the Global Software - Application industry.

( Industry Median: 24.32 vs. NOW: 121.50 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
NOW' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 34.25  Med: 147.07 Max: 1415.16
Current: 121.5
34.25
1415.16
Price-to-Operating-Cash-Flow 64.93
NOW's Price-to-Operating-Cash-Flow is ranked lower than
92% of the 856 Companies
in the Global Software - Application industry.

( Industry Median: 17.68 vs. NOW: 64.93 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
NOW' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 24.6  Med: 65.39 Max: 120.36
Current: 64.93
24.6
120.36
EV-to-EBIT -133.03
NOW's EV-to-EBIT is ranked lower than
99.99% of the 1770 Companies
in the Global Software - Application industry.

( Industry Median: 17.68 vs. NOW: -133.03 )
Ranked among companies with meaningful EV-to-EBIT only.
NOW' s EV-to-EBIT Range Over the Past 10 Years
Min: -157.2  Med: -72.4 Max: -19.9
Current: -133.03
-157.2
-19.9
EV-to-EBITDA -457.53
NOW's EV-to-EBITDA is ranked lower than
99.99% of the 1910 Companies
in the Global Software - Application industry.

( Industry Median: 13.76 vs. NOW: -457.53 )
Ranked among companies with meaningful EV-to-EBITDA only.
NOW' s EV-to-EBITDA Range Over the Past 10 Years
Min: -461.03  Med: -105.6 Max: -23.3
Current: -457.53
-461.03
-23.3
Current Ratio 1.22
NOW's Current Ratio is ranked lower than
74% of the 1750 Companies
in the Global Software - Application industry.

( Industry Median: 1.94 vs. NOW: 1.22 )
Ranked among companies with meaningful Current Ratio only.
NOW' s Current Ratio Range Over the Past 10 Years
Min: 1  Med: 1.53 Max: 2.43
Current: 1.22
1
2.43
Quick Ratio 1.22
NOW's Quick Ratio is ranked lower than
70% of the 1750 Companies
in the Global Software - Application industry.

( Industry Median: 1.79 vs. NOW: 1.22 )
Ranked among companies with meaningful Quick Ratio only.
NOW' s Quick Ratio Range Over the Past 10 Years
Min: 1  Med: 1.53 Max: 2.43
Current: 1.22
1
2.43
Days Sales Outstanding 67.61
NOW's Days Sales Outstanding is ranked lower than
63% of the 1492 Companies
in the Global Software - Application industry.

( Industry Median: 68.98 vs. NOW: 67.61 )
Ranked among companies with meaningful Days Sales Outstanding only.
NOW' s Days Sales Outstanding Range Over the Past 10 Years
Min: 67.61  Med: 85.12 Max: 117.06
Current: 67.61
67.61
117.06
Days Payable 29.19
NOW's Days Payable is ranked lower than
58% of the 1330 Companies
in the Global Software - Application industry.

( Industry Median: 43.37 vs. NOW: 29.19 )
Ranked among companies with meaningful Days Payable only.
NOW' s Days Payable Range Over the Past 10 Years
Min: 17.41  Med: 33.7 Max: 41.41
Current: 29.19
17.41
41.41

Buy Back

vs
industry
vs
history
3-Year Average Share Buyback Ratio -6.10
NOW's 3-Year Average Share Buyback Ratio is ranked lower than
67% of the 1148 Companies
in the Global Software - Application industry.

( Industry Median: -2.60 vs. NOW: -6.10 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
NOW' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -74.6  Med: -7.25 Max: 0
Current: -6.1
-74.6
0

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 66.03
NOW's Price-to-Tangible-Book is ranked lower than
97% of the 1488 Companies
in the Global Software - Application industry.

( Industry Median: 4.38 vs. NOW: 66.03 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
NOW' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 15.63  Med: 28.81 Max: 66.52
Current: 66.03
15.63
66.52
Price-to-Median-PS-Value 0.91
NOW's Price-to-Median-PS-Value is ranked higher than
80% of the 1498 Companies
in the Global Software - Application industry.

( Industry Median: 1.15 vs. NOW: 0.91 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
NOW' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.44  Med: 0.99 Max: 1.42
Current: 0.91
0.44
1.42
Earnings Yield (Greenblatt) % -0.76
NOW's Earnings Yield (Greenblatt) % is ranked lower than
75% of the 2521 Companies
in the Global Software - Application industry.

( Industry Median: 3.23 vs. NOW: -0.76 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
NOW' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: -3.05  Med: 0 Max: 1450.01
Current: -0.76
-3.05
1450.01

More Statistics

Revenue (TTM) (Mil) $1,501
EPS (TTM) $ -0.95
Beta1.67
Short Percentage of Float4.10%
52-Week Range $63.51 - 103.92
Shares Outstanding (Mil)169.88

Analyst Estimate

Dec17 Dec18 Dec19
Revenue (Mil $) 1,878 2,418 2,647
EPS ($) 0.94 1.66 2.06
EPS without NRI ($) 0.94 1.66 2.06
EPS Growth Rate
(Future 3Y To 5Y Estimate)
42.07%
Dividends per Share ($)
» More Articles for NOW

Headlines

Articles On GuruFocus.com
Insiders Roundup: NuStar Energy, Opko Health, Alphabet Apr 14 2017 
Pioneer Investments Continues to Buy Alibaba, 8 Others Dec 07 2016 
Insiders Sell Netflix, Facebook, Papa John's Oct 21 2016 
Manning & Napier Buys Stake in ServiceNow May 26 2016 
Bruce Berkowitz Comments on DNOW May 23 2016 
Berkowitz's Fairholme Fund Axes Positions in Berkshire Hathaway, AIG, IBM May 20 2016 
Baron Funds Comments on ServiceNow Inc. May 06 2016 
Manning & Napier Exits Position in Apple Apr 15 2016 
Baron Funds Comments on ServiceNow Inc. Nov 10 2015 
Weekly CEO Sells Highlight: Patrick Industries, Microsemi, ServiceNow, Sharps Compliance Sep 13 2015 

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