Stock analysis/Share presentation ⬇️
Today we are talking about the company ServiceNow: $NOW (-0,64%)
What is and does ServiceNow anyway 🤔
ServiceNow is a company that provides cloud-based IT service management software and digital workflows. The platform offers a variety of capabilities, including IT service management, IT operations management, IT business management, IT risk management, IT security management, customer service management, human resources service management, and more. Companies can use the platform to automate and optimize their IT and business processes to improve the efficiency and effectiveness of their organization.
When was ServiceNow founded?
ServiceNow was founded in 2004 in San Diego, California, USA.
How many employees does the company have: 🙋🏽♂️🙋🏻♀️
ServiceNow currently employs a total of over 20,000 people.
P/E RATIO:
ServiceNow has a current P/E ratio of just under 274 , which is very very high in my opinion.
Market capitalization: 🏦
Currently, ServiceNow has a market capitalization of around 102 billion euros.
Dividend yield: 💰
The company does not currently pay a dividend to its shareholders.
Strengths of the share: 📈
Some of ServiceNow's strengths include:
- Comprehensive platform: ServiceNow is a comprehensive platform that covers a wide range of business areas, including IT, HR, customer service, security, and more. It provides seamless integration between different business units and enables organizations to automate and streamline their processes.
- Powerful IT service management capabilities: ServiceNow is particularly strong in the area of IT service management (ITSM). It offers a wide range of capabilities including incident management, problem management, change management, configuration management and more. These capabilities enable IT departments to automate and streamline their processes to increase efficiency and improve customer satisfaction.
- Cloud-based platform: ServiceNow is a cloud-based platform that allows organizations to quickly and easily access and use the platform without having to deploy their own IT resources. This makes it a cost-effective solution for businesses of all sizes.
- Flexibility and customizability: ServiceNow is a highly flexible and customizable platform that allows companies to tailor their processes and workflows to their specific needs. Companies can also create their own applications on the platform to meet specific business needs.
- Good usability: ServiceNow is a very user-friendly platform that allows users to quickly and easily access the information and functionality they need. The interface is intuitive and easy to use, which reduces the learning curve for new users.
- Good integration with other systems: ServiceNow offers seamless integration with other systems and applications, allowing organizations to leverage and integrate their existing systems and data sources. This makes it easier to automate business processes and streamline workflows.
- Good support and community
Weaknesses of the share: 📉
Some of ServiceNow's weaknesses are:
- ServiceNow is a relatively expensive IT service management solution compared to some of its competitors.
- Some users have reported that implementing ServiceNow can be time-consuming and complex.
- ServiceNow may not have as many customization options as some other IT service management solutions on the market.
- Some users have reported that ServiceNow's customer support can sometimes be slow or inadequate.
- ServiceNow may not have as many features as some other IT service management solutions on the market.
Industry of ServiceNow:
ServiceNow is in the Software-as-a-Service (SaaS) market and this is software in a subscription model. This SaaS market is not cyclical, the central point of IT is not removed in a company even in a crisis. Without digital processes, the whole company stands still. The industry is growing at 30% per year and they are in the center of it.
This market can be divided into three value chains that build on each other:
Infrastructure as a Service (IaaS) - Google Cloud, Amazon AWS...Platform as a service (PaaS) - ServiceNowSoftware as a service (SaaS) - ServiceNowAn additional trend in B2B subscriptions is the low bounce rate, only 3% of ServiceNow customers cancel their subscription.
A little more about the business model: ⬇️
ServiceNow makes money with subscription software that digitizes business processes.
Its core competence lies in IT management: this includes activities such as setting up and scaling a server, providing laptops and iPhones for employees, and synchronizing authorizations, among many others. This makes ServiceNow the central point of contact for IT and the basis for all internal work processes. All employees and other software components must dock with ServiceNow to access the information. As a result, there is now only one system that holds the truth.
Designed for non-IT professionals, ServiceNow is easy to use, compatible with all existing systems, and customizable to the company's industry. Once in the enterprise, ServiceNow can then expand to other adjacent business areas such as human resources, security and custom apps.
The Now platform can easily integrate with other software and apps such as Microsoft Word, Excel, Slack, Dropbox, Gmail, YouTube and iMessage. A process can be generated via drag-and-drop and clicking around. Programming skills are not required.
There is full customer focus in all processes, there must be added value for the customer, the rest flies out.
ServiceNow becomes the central IT point of contact in large companies and helps to digitalize rusty (physical processes).
They have near unique selling power in their industry, which is growing at 30% per year. 400 of the largest 500 companies in the world are already their customers.
Company Management:
Bill McDermott has been CEO of ServiceNow since 2019, he studied business administration at Dowling College in New York and earned his MBA at Northwestern University in Illinois State, and in addition he participated in the Executive Development Program at the University of Pennsylvania.
Prior to that, Bill served as CEO of SAP, quadrupling their stock price in 8 years, and has worked and gained valuable experience in various management positions at Siebel (CRM integration solutions), Gartner (market research), and Xerox (document management).
What is ServiceNow's goal:
ServiceNow aims to transform the way people work by digitizing the activities, tasks, and processes that make up everyday work. This helps modern businesses work faster and become more scalable than ever before.
Your opinion: 🤔🧐
Now I'd love to hear your thoughts on this stock in the comments.
What do you think of ADM and did you already know this company?
Do you guys maybe already have this stock in your portfolio?
Feel free to let me know in the comments.
Of course, this is not an investment advice but just my own opinion that I would like to share with you.
