Short from $176.08
Market Cap - $31.07B
Beta - 1.64
EPS - (0.87)
P/B - 52.48
- ServiceNow reported impressive 1Q18 results - both earnings and revenues increased YoY. However, the equity remains massively overstretched trading with a forward P/E of 55.33x.
- On top of a ridiculous forward P/E, ServiceNow is also trading with a price to book ratio of 52.48.
- The IT company faces massive competition in the non-ITSM markets by companies like salesforce.com and Oracle. Though they might have a competitive edge against their competition in the security response market - their HR and customer service solutions however face stiff competition from these companies. Non-ITSM is becoming a larger part to their revenue though the increasing competition can affect their growth. On top of this continuing losses and muted free cash flow growth is a concern.
- They have had losses over the past five years and have a deficit of $1.15bn at the end of 2017.
NeroTree Capital rates ServiceNow Inc as a SELL with a price target of $140.
Market Cap - $31.07B
Beta - 1.64
EPS - (0.87)
P/B - 52.48
- ServiceNow reported impressive 1Q18 results - both earnings and revenues increased YoY. However, the equity remains massively overstretched trading with a forward P/E of 55.33x.
- On top of a ridiculous forward P/E, ServiceNow is also trading with a price to book ratio of 52.48.
- The IT company faces massive competition in the non-ITSM markets by companies like salesforce.com and Oracle. Though they might have a competitive edge against their competition in the security response market - their HR and customer service solutions however face stiff competition from these companies. Non-ITSM is becoming a larger part to their revenue though the increasing competition can affect their growth. On top of this continuing losses and muted free cash flow growth is a concern.
- They have had losses over the past five years and have a deficit of $1.15bn at the end of 2017.
NeroTree Capital rates ServiceNow Inc as a SELL with a price target of $140.