Servicenow Beneish M Score

NOW
 Stock
  

USD 506.51  7.06  1.41%   

This module uses fundamental data of Servicenow to approximate the value of its Beneish M Score. Servicenow M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see Servicenow Piotroski F Score and Servicenow Altman Z Score analysis.
  
Total Debt is likely to climb to about 2.6 B in 2022. Debt Current is likely to climb to about 66.5 M in 2022. Servicenow Total Assets Per Share are fairly stable at the moment as compared to the past year. Servicenow reported Total Assets Per Share of 54.10 in 2021. Quick Ratio is likely to climb to 1.20 in 2022, whereas Cash and Equivalents Turnover is likely to drop 3.22 in 2022.
At this time, it appears that Servicenow is an unlikely manipulator. The earnings manipulation may begin if Servicenow's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Servicenow executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Servicenow's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.31
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality1.0Focus
Expense Coverage1.0Focus
Gross Margin Strengs0.9Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

Servicenow Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Servicenow's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues6.4 B5.9 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense2.9 B2.7 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations2.4 B2.2 B
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion417.4 M386.8 M
Significantly Up
Increasing
Slightly volatile
Total Assets11.7 B10.8 B
Significantly Up
Increasing
Slightly volatile
Investments3.6 B3.3 B
Significantly Up
Increasing
Slightly volatile
Investments Current1.8 B1.6 B
Significantly Up
Increasing
Slightly volatile
Investments Non Current1.8 B1.7 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net1.4 B1.3 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables1.3 B1.2 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities7.7 B7.1 B
Significantly Up
Increasing
Slightly volatile
Current Assets5.6 B5.2 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current5.2 B4.8 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities5.3 B4.9 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current2.7 B2.5 B
Significantly Up
Increasing
Slightly volatile
Total Debt2.6 B2.5 B
Significantly Up
Increasing
Slightly volatile
Debt Current66.5 M64.8 M
Fairly Up
Decreasing
Slightly volatile
Debt Non Current2.6 B2.4 B
Significantly Up
Increasing
Slightly volatile
Operating Income277.3 M257 M
Significantly Up
Increasing
Slightly volatile
Gross Margin69.4977.0522
Moderately Down
Increasing
Slightly volatile

Servicenow Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Servicenow's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Servicenow in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Servicenow's degree of accounting gimmicks and manipulations.

About Servicenow Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

4.14 Billion

Servicenow Operating Expenses is fairly stable at the moment as compared to the past year. Servicenow reported Operating Expenses of 3.83 Billion in 2021

Servicenow Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Servicenow. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues1.93 B2.61 B3.46 B4.52 B5.9 B6.36 B
Total Assets3.4 B3.88 B6.02 B8.72 B10.8 B11.65 B
Current Assets2.41 B2.34 B2.83 B4.52 B5.22 B5.63 B
Assets Non Current1.13 B1.53 B3.2 B4.19 B4.82 B5.2 B
Total Liabilities2.81 B2.77 B3.89 B5.88 B7.1 B7.66 B
Current Liabilities2.1 B2.01 B2.75 B3.74 B4.95 B5.34 B
Total Debt1.17 B661.71 M1.13 B2.13 B2.46 B2.65 B
Debt Non Current630.02 M661.71 M1.08 B2.06 B2.37 B2.56 B
Operating Income(101.41 M)(42.43 M)42.12 M198.86 M257 M277.29 M
Investments1.44 B1.51 B1.93 B2.88 B3.32 B3.58 B
Investments Current1.05 B931.72 M915.32 M1.42 B1.63 B1.76 B
Gross Margin74.1576.1376.9878.1677.0569.49

Servicenow ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Servicenow's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Servicenow's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Servicenow Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Servicenow's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Servicenow using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Servicenow based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. The company was founded in 2004 and is headquartered in Santa Clara, California. Servicenow operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 16881 people.

Servicenow Investors Sentiment

The influence of Servicenow's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Servicenow. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Servicenow's public news can be used to forecast risks associated with 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 equiteis 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's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Servicenow's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Servicenow.

Servicenow Implied Volatility

    
  59.35  
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 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 are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Servicenow in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Servicenow's short interest history, or implied volatility extrapolated from Servicenow options trading.

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Servicenow using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

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Additionally, see Servicenow Piotroski F Score and Servicenow Altman Z Score analysis. 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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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When running Servicenow 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 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.
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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.
Quarterly Earnings Growth YOY
-0.66
Market Capitalization
105.5 B
Quarterly Revenue Growth YOY
0.24
Return On Assets
0.0134
Return On Equity
0.0493
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.