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Why NYSE:CRM Stands Out as a Quality Stock.

By Mill Chart

Last update: Nov 15, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if SALESFORCE INC (NYSE:CRM) is suited for quality investing. Investors should of course do their own research, but we spotted SALESFORCE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of SALESFORCE INC

  • SALESFORCE INC has achieved substantial revenue growth over the past 5 years, with a 24.36% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • SALESFORCE INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 60.03% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a Debt/Free Cash Flow Ratio of 1.25, SALESFORCE INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • SALESFORCE INC demonstrates consistent Profit Quality over the past 5 years, with a strong 1.0K%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • SALESFORCE INC has consistently achieved strong EBIT growth over the past 5 years, with a 32.56% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • SALESFORCE INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

A complete fundamental analysis of NYSE:CRM

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, CRM scores 6 out of 10 in our fundamental rating. CRM was compared to 281 industry peers in the Software industry. CRM scores excellent on profitability, but there are some minor concerns on its financial health. CRM is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make CRM suitable for growth investing!

Check the latest full fundamental report of CRM for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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