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Examining the Quality Attributes of NYSE:CRM.

By Mill Chart

Last update: Dec 29, 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.

Looking into the quality metrics of SALESFORCE INC

  • SALESFORCE INC has demonstrated significant revenue growth over the past 5 years, with a 24.36% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • SALESFORCE INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 62.6% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a favorable Debt/Free Cash Flow Ratio of 1.07, 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.
  • 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 superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

CRM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. While CRM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CRM is growing strongly while it is still valued neutral. This is a good combination! These ratings could make CRM a good candidate for growth investing.

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

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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