Servicenow Profitability Analysis

NOW
 Stock
  

USD 494.85  7.39  1.52%   

For Servicenow profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Servicenow to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Servicenow utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Servicenow's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Servicenow over time as well as its relative position and ranking within its peers. Additionally, see Stocks Correlation.
  
Servicenow Return on Sales is fairly stable at the moment as compared to the past year. Servicenow reported Return on Sales of 0.046 in 2021. Sales per Share is likely to climb to 32.11 in 2022, whereas Price to Sales Ratio is likely to drop 22.34 in 2022. Accumulated Other Comprehensive Income is likely to climb to about 116.6 M in 2022. Consolidated Income is likely to climb to about 147 M in 2022.

Servicenow Revenues

6.36 Billion

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
101 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.

Servicenow Earnings Per Share vs. Current Ratio Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Servicenow's current stock value. Our valuation model uses many indicators to compare Servicenow value to that of its competitors to determine the firm's financial worth.
Servicenow is considered to be number one stock in current ratio category among related companies. It is considered to be number one stock in earnings per share category among related companies creating about  0.97  of Earnings Per Share per Current Ratio. The ratio of Current Ratio to Earnings Per Share for Servicenow is roughly  1.03 . Servicenow Current Ratio is fairly stable at the moment as compared to the past year. Servicenow reported Current Ratio of 1.05 in 2021. Comparative valuation analysis is a catch-all model that can be used if you cannot value Servicenow by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Servicenow's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Servicenow's earnings, one of the primary drivers of an investment's value.

Servicenow Earnings Per Share vs. Current Ratio

Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Servicenow 
Current Ratio 
 = 
Current Asset 
Current Liabilities 
1.12 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Servicenow 
Earnings per Share 
 = 
Earnings 
Average Shares 
1.09 X
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.

Servicenow Earnings Per Share Comparison

Servicenow is currently under evaluation in earnings per share category among related companies.

Servicenow Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Servicenow, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Servicenow will eventually generate negative long term returns. The profitability progress is the general direction of Servicenow's change in net profit over the period of time. It can combine multiple indicators of Servicenow, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income108.1 M116.6 M
Consolidated Income136.3 M147 M
Net Income230 M248.2 M
Net Income Common Stock136.3 M147 M
Net Income to Non Controlling Interests277.2 K284.5 K
Operating Income257 M277.3 M
Income Tax Expense27.6 M29.8 M
Net Income Per Employee13.6 K14.7 K
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 Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Servicenow. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Servicenow position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Servicenow's important profitability drivers and their relationship over time.

Servicenow Profitability Trends

Servicenow profitability trend refers to the progression of profit or loss within a business. An upward trend means that Servicenow's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Servicenow's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Servicenow Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Servicenow different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Servicenow in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Servicenow's future profitability.

Use Servicenow in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Servicenow position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Servicenow will appreciate offsetting losses from the drop in the long position's value.

Servicenow Pair Trading

Servicenow Pair Trading Analysis

The ability to find closely correlated positions to Servicenow could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Servicenow when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Servicenow - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Servicenow to buy it.
The correlation of Servicenow is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Servicenow moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Servicenow moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Servicenow can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Servicenow position

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 Momentum Thematic Idea Now

Momentum
Momentum Theme
Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 37 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 Momentum Theme or any other thematic opportunities.
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Additionally, see Stocks Correlation. 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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To fully project Servicenow's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Servicenow at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Servicenow's income statement, its balance sheet, and the statement of cash flows.
Potential Servicenow investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Servicenow investors may work on each financial statement separately, they are all related. The changes in Servicenow's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Servicenow's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.