Servicenow Stock Buy Hold or Sell Recommendation

NOW
 Stock
  

USD 487.46  7.49  1.51%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Servicenow is 'Strong Hold'. Macroaxis provides Servicenow buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding NOW positions. The advice algorithm takes into account all of Servicenow's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Servicenow's buy-and-hold perspective. Additionally, see Servicenow Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Servicenow and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Servicenow.

Execute Servicenow Buy or Sell Advice

The Servicenow recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Servicenow. Macroaxis does not own or have any residual interests in Servicenow or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Servicenow's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell ServicenowBuy Servicenow
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Actively responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Servicenow has a Risk Adjusted Performance of 0.0265, Jensen Alpha of 0.1538, Total Risk Alpha of 0.2113, Sortino Ratio of 0.0247 and Treynor Ratio of 0.0253
Macroaxis provides recommendation on Servicenow to complement and cross-verify current analyst consensus on Servicenow. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Servicenow is not overpriced, please validate all Servicenow fundamentals, including its current ratio, and the relationship between the ebitda and number of employees . Given that Servicenow has a number of shares shorted of 4 M, we advise you to double-check Servicenow market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Servicenow Trading Alerts and Improvement Suggestions

Servicenow has very high historical volatility over the last 90 days
Servicenow is unlikely to experience financial distress in the next 2 years
Over 90.0% of the company shares are owned by institutional investors
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Servicenow current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Servicenow analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Servicenow analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price569.38
Target Median Price550.00
Target High Price850.00
Recommendation Mean1.70
Number Of Analyst Opinions33
Target Low Price390.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Servicenow Returns Distribution Density

The distribution of Servicenow's historical returns is an attempt to chart the future uncertainty of Servicenow's future price movements. The chart of the probability distribution of Servicenow stock daily returns describes the distribution of returns around its average expected value. We use Servicenow price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Servicenow returns is essential to provide solid investment advice for Servicenow stock.
Mean Return0.06Value At Risk-6.76
Potential Upside5.86Standard Deviation3.76
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Servicenow historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Servicenow Stock 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.
Security TypeSharesValue
Brown Advisory IncCommon Shares2.4 M1.2 B
Td Asset Management IncCommon Shares1.2 M580.3 M
Sumitomo Mitsui Trust Holdings IncCommon Shares597.5 K284.1 M
Tcw Group IncCommon Shares587.4 K279.3 M
Wellcome Trust Ltd The As Trustee Of The Wellcome TrustCommon Shares550 K261.5 M
Allspring Global Investments Holdings LlcCommon Shares491.4 K233.7 M
Envestnet Asset Management IncCommon Shares471.7 K224.3 M
Note, although Servicenow's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Servicenow Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(150.51 M)(248.86 M)(337.58 M)(432.52 M)(389.27 M)(399.51 M)
Depreciation Amortization and Accretion113.88 M149.6 M252.11 M336.38 M386.84 M417.38 M
Net Cash Flow or Change in Cash and Cash Equivalents325.9 M(159.29 M)209.45 M901.44 M1.04 B1.12 B
Net Cash Flow Business Acquisitions and Disposals(58.2 M)(37.44 M)(7.41 M)(107.24 M)(96.51 M)(99.05 M)
Issuance Purchase of Equity Shares81.64 M104.16 M107.87 M145.77 M167.63 M148.99 M
Issuance Repayment of Debt Securities767.21 M(430.58 M)(9 K)959.49 M1.1 B1.19 B
Net Cash Flow from Financing538.89 M(607.43 M)(301.86 M)596.65 M(506 M)(519.32 M)
Net Cash Flow from Investing(883.95 M)(347.42 M)(724.48 M)(1.51 B)(1.61 B)(1.65 B)
Net Cash Flow Investment Acquisitions and Disposals(668.57 M)(61.12 M)(402.92 M)(968.45 M)(871.6 M)(894.54 M)
Net Cash Flow from Operations642.83 M811.09 M1.24 B1.79 B2.19 B2.36 B
Effect of Exchange Rate Changes on Cash28.01 M(15.53 M)(186 K)25.07 M28.82 M31.1 M
Share Based Compensation394 M543.95 M662.2 M870.45 M1 B1.08 B

Servicenow Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Servicenow or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Servicenow stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Servicenow stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.15
β
Beta against DOW1.86
σ
Overall volatility
3.66
Ir
Information ratio 0.0277

Servicenow Volatility Alert

Servicenow exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Servicenow individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Servicenow future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Servicenow's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Servicenow's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Servicenow Implied Volatility

Servicenow's implied volatility" href="/stock-options/NOW/Servicenow">Servicenow's implied volatility exposes the market's sentiment of Servicenow stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Servicenow's implied volatility" href="/stock-options/NOW/Servicenow">Servicenow's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Servicenow stock will not fluctuate a lot when Servicenow's options" href="/stock-options/NOW/Servicenow">Servicenow's options are near their expiration.

Servicenow Fundamentals Vs Peers

Comparing Servicenow's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Servicenow's direct or indirect competition across all of the common fundamentals between Servicenow and the related equities. This way, we can detect undervalued stocks with similar characteristics as Servicenow or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Servicenow's fundamental indicators could also be used in its relative valuation, which is a method of valuing Servicenow by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Servicenow to competition
FundamentalsServicenowPeer Average
Return On Equity4.93 %(0.31) %
Return On Asset1.34 %(0.14) %
Profit Margin2.79 %(1.27) %
Operating Margin3.30 %(5.51) %
Current Valuation88.36 B16.62 B
Shares Outstanding199 M571.82 M
Shares Owned by Insiders0.27 %10.09 %
Shares Owned by Institutions89.68 %39.21 %
Number of Shares Shorted4 M4.71 M
Price to Earning453.57 X28.72 X
Price to Book27.86 X9.51 X
Price to Sales14.92 X11.42 X
Revenue6.6 B9.43 B
Gross Profit4.54 B27.38 B
EBITDA675 M3.9 B
Net Income184 M570.98 M
Cash and Equivalents3.83 B2.7 B
Cash per Share19.02 X5.01 X
Total Debt2.14 B5.32 B
Debt to Equity0.51 %48.70 %
Current Ratio1.12 X2.16 X
Book Value Per Share17.76 X1.93 K
Cash Flow from Operations2.46 B971.22 M
Short Ratio2.11 X4.00 X
Earnings Per Share1.09 X3.12 X
Price to Earnings To Growth2.25 X4.89 X
Number of Employees16.88 K18.84 K
Beta1.03-0.15
Market Capitalization98.48 B19.03 B
Total Asset1.81 B29.47 B
Retained Earnings(380.05 M)9.33 B
Working Capital354 M1.48 B
Current Asset1.09 B9.34 B
   Servicenow exotic insider transaction detected [view details]

Servicenow Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Servicenow . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution26228.24
Daily Balance Of Power(0.52)
Rate Of Daily Change0.98
Day Median Price490.63
Day Typical Price489.57
Market Facilitation Index0.0
Price Action Indicator(6.92)

About Servicenow Buy or Sell Advice

When is the right time to buy or sell Servicenow? Buying financial instruments such as Servicenow Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Servicenow investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Accounts Payable52.96 M34.24 M89 M96.03 M
Receivables835.28 M1.01 B1.39 B1.5 B

Use Investing Ideas to Build Portfolios

In addition to having Servicenow in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Drugs Thematic Idea Now

Drugs
Drugs Theme
Companies involved in medical and pharmaceutical drug research, manufacturing, and delivery. The Drugs theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Drugs Theme or any other thematic opportunities.
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Additionally, see Servicenow Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Servicenow information on this page should be used as a complementary analysis to other Servicenow's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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Is Servicenow's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Servicenow. If investors know Servicenow will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Servicenow listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Servicenow is measured differently than its book value, which is the value of Servicenow that is recorded on the company's balance sheet. Investors also form their own opinion of Servicenow's value that differs from its market value or its book value, called intrinsic value, which is Servicenow's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Servicenow's market value can be influenced by many factors that don't directly affect Servicenow's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Servicenow's value and its price as these two are different measures arrived at by different means. Investors typically determine Servicenow value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Servicenow's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.