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Now Inc (DNOW)



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Upturn Advisory Summary
09/12/2025: DNOW (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $17
1 Year Target Price $17
1 | Strong Buy |
0 | Buy |
1 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -41.91% | Avg. Invested days 28 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.60B USD | Price to earnings Ratio 20.11 | 1Y Target Price 17 |
Price to earnings Ratio 20.11 | 1Y Target Price 17 | ||
Volume (30-day avg) 2 | Beta 1.21 | 52 Weeks Range 11.54 - 18.45 | Updated Date 09/14/2025 |
52 Weeks Range 11.54 - 18.45 | Updated Date 09/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.76 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 3.45% | Operating Margin (TTM) 6.05% |
Management Effectiveness
Return on Assets (TTM) 5.2% | Return on Equity (TTM) 7.43% |
Valuation
Trailing PE 20.11 | Forward PE 35.97 | Enterprise Value 1413582840 | Price to Sales(TTM) 0.67 |
Enterprise Value 1413582840 | Price to Sales(TTM) 0.67 | ||
Enterprise Value to Revenue 0.59 | Enterprise Value to EBITDA 8.89 | Shares Outstanding 105012000 | Shares Floating 103041942 |
Shares Outstanding 105012000 | Shares Floating 103041942 | ||
Percent Insiders 2.32 | Percent Institutions 98.39 |
Upturn AI SWOT
Now Inc

Company Overview
History and Background
ServiceNow (NOW) was founded in 2003 by Fred Luddy as Glidesoft, Inc., later changing its name to ServiceNow in 2006. It went public in 2012. The company initially focused on IT service management (ITSM) and has expanded into workflow automation across various business functions.
Core Business Areas
- ITSM: Provides a suite of tools for managing IT services, including incident management, problem management, change management, and IT asset management. Revenue is largely derived from subscription fees for these cloud-based services.
- IT Operations Management (ITOM): Helps organizations automate and manage their IT infrastructure, including discovery, monitoring, and event management.
- IT Business Management (ITBM): Enables IT departments to align their activities with business goals, including project portfolio management, demand management, and financial management.
- Customer Service Management (CSM): Helps businesses deliver exceptional customer service experiences through automated workflows and personalized interactions.
- HR Service Delivery (HRSD): Automates HR processes, such as onboarding, employee requests, and knowledge management.
- Creator Workflows: Allows businesses to build custom applications and workflows on the ServiceNow platform with low-code tools.
Leadership and Structure
Bill McDermott is the CEO. The company has a typical corporate structure with departments like Engineering, Sales, Marketing, Finance, and HR.
Top Products and Market Share
Key Offerings
- ITSM: ServiceNow's ITSM solution is its flagship product. It holds a significant market share in the ITSM space. Competitors include Atlassian (JIRA Service Management), BMC Helix, and Ivanti. Market share is estimated to be around 45% based on various reports.
- ITOM: ServiceNow's ITOM solutions automates IT infrastructure. Competitors include Dynatrace, Datadog, New Relic and IBM. Market share is more fragmented than ITSM, estimated at around 15%.
- CSM: ServiceNow's CSM provides businesses with customer service experiences through automated workflows and personalized interactions. Competitors include Salesforce Service Cloud, Microsoft Dynamics 365 Customer Service, and Zendesk. Estimated market share around 10%.
- HRSD: ServiceNow's HR Service Delivery enables HR process automation. Competitors include Workday, Oracle HCM Cloud, and SAP SuccessFactors. Estimated market share around 8%.
Market Dynamics
Industry Overview
The enterprise software market is experiencing rapid growth, driven by digital transformation initiatives and the need for automation. Cloud-based solutions are gaining prominence.
Positioning
ServiceNow is positioned as a leading provider of cloud-based workflow automation solutions, particularly in the IT and business operations spaces. Its competitive advantage lies in its comprehensive platform and strong brand recognition.
Total Addressable Market (TAM)
The total addressable market for digital transformation and workflow automation is estimated to be over $200 billion. ServiceNow is well-positioned to capture a significant portion of this market, potentially around $50-75 Billion.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Comprehensive platform
- High customer retention rates
- Scalable cloud-based architecture
- Growing ecosystem of partners and developers
Weaknesses
- High subscription costs can be a barrier for smaller organizations
- Complexity of the platform can require specialized expertise
- Reliance on a strong internet connection
Opportunities
- Expanding into new markets and industries
- Developing new applications and workflows on the platform
- Leveraging AI and machine learning to further automate processes
- Acquiring complementary technologies and businesses
Threats
- Increasing competition from established players and new entrants
- Economic downturn could impact customer spending
- Security breaches and data privacy concerns
- Changing customer needs and preferences
Competitors and Market Share
Key Competitors
- CRM
- WORK
- MSFT
- IBM
Competitive Landscape
ServiceNow has a strong competitive position due to its comprehensive platform, brand recognition, and high customer retention rates. However, it faces increasing competition from established players like Salesforce and Microsoft, as well as emerging vendors.
Major Acquisitions
Element AI
- Year: 2021
- Acquisition Price (USD millions): 230
- Strategic Rationale: Acquired to bolster ServiceNow's AI capabilities and accelerate the development of intelligent workflows.
Growth Trajectory and Initiatives
Historical Growth: ServiceNow has experienced significant growth over the past decade, driven by the increasing adoption of cloud-based workflow automation solutions.
Future Projections: Analysts generally expect ServiceNow to continue to grow at a strong pace in the coming years, driven by its expanding product portfolio and strong market position. Growth projections will be dependent on analyst reports.
Recent Initiatives: Recent initiatives include expanding its partnerships with major cloud providers, investing in AI and machine learning capabilities, and developing new industry-specific solutions.
Summary
ServiceNow is a strong company with a leading position in the cloud-based workflow automation market. Its comprehensive platform and high customer retention rates are key strengths. However, it faces increasing competition and needs to continue innovating to maintain its competitive edge and keep ahead of companies like Salesforce and Microsoft.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Industry Reports (e.g., Gartner, Forrester)
- Analyst Reports
- Company Press Releases
- Yahoo Finance
- Google Finance
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Financial data and market estimates are subject to change. Actual results may vary.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Now Inc
Exchange NYSE | Headquaters Houston, TX, United States | ||
IPO Launch date 2014-05-20 | CEO, President & Director Mr. David A. Cherechinsky CPA | ||
Sector Industrials | Industry Industrial Distribution | Full time employees 2575 | Website https://www.dnow.com |
Full time employees 2575 | Website https://www.dnow.com |
DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation, gas utilities, and customer on-site and off-site locations in the United States, Canada, the United Kingdom, Norway, Australia, the Netherlands, Singapore, and the Middle East. The company's products portfolio includes pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical, instrumentation and measurement products, and pumping solutions, as well as modular process, production, measurement, automation, and control equipment; consumable maintenance, repair, and operating supplies; mill supplies, tools, safety supplies, and personal protective equipment; and artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas wellsite facility solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management; sourcing, procurement, and warehouse management solutions; logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, refineries, petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.

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