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Why SALESFORCE INC (NYSE:CRM) qualifies as a quality stock.

By Mill Chart

Last update: Sep 1, 2023

In this article we will dive into SALESFORCE INC (NYSE:CRM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed SALESFORCE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:CRM highlighted

  • The 5-year revenue growth of SALESFORCE INC has been remarkable, with 24.36% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 68.53%, SALESFORCE INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a favorable Debt/Free Cash Flow Ratio of 1.36, SALESFORCE INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • The Profit Quality (5-year) of SALESFORCE INC stands at 1.0K%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • With a robust 5-year EBIT growth of 32.56%, SALESFORCE INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • The EBIT 5-year growth of SALESFORCE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to CRM. CRM was compared to 286 industry peers in the Software industry. CRM has an excellent profitability rating, but there are some minor concerns on its financial health. CRM is growing strongly while it is still valued neutral. This is a good combination! This makes CRM very considerable for growth investing!

Our latest full fundamental report of CRM contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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