Investors seeking growth at a reasonable cost should explore NYSE:CRM.

Last update: Jan 16, 2024

Take a closer look at SALESFORCE INC (NYSE:CRM), an affordable growth stock uncovered by our stock screener. NYSE:CRM boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Evaluating Growth: NYSE:CRM

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:CRM has received a 8 out of 10:

CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.34%, which is quite impressive.
The Earnings Per Share has been growing by 31.21% on average over the past years. This is a very strong growth
Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 12.08% in the last year.
Measured over the past years, CRM shows a very strong growth in Revenue. The Revenue has been growing by 24.36% on average per year.
CRM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.32% yearly.
CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.83% yearly.

A Closer Look at Valuation for NYSE:CRM

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:CRM has earned a 5 for valuation:

CRM's Price/Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 75.81% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than the industry average as 76.17% of the companies are valued more expensively.
81.95% of the companies in the same industry are more expensive than CRM, based on the Enterprise Value to EBITDA ratio.
79.42% of the companies in the same industry are more expensive than CRM, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CRM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CRM's earnings are expected to grow with 29.33% in the coming years.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CRM was assigned a score of 5 for health:

An Altman-Z score of 5.53 indicates that CRM is not in any danger for bankruptcy at the moment.
CRM's Altman-Z score of 5.53 is fine compared to the rest of the industry. CRM outperforms 71.12% of its industry peers.
CRM has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
CRM has a Debt to FCF ratio of 1.07. This is amongst the best in the industry. CRM outperforms 80.14% of its industry peers.
CRM has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.

A Closer Look at Profitability for NYSE:CRM

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CRM has achieved a 7:

With a decent Return On Assets value of 2.85%, CRM is doing good in the industry, outperforming 79.06% of the companies in the same industry.
CRM's Return On Equity of 4.46% is fine compared to the rest of the industry. CRM outperforms 77.62% of its industry peers.
CRM's Return On Invested Capital of 4.73% is amongst the best of the industry. CRM outperforms 80.14% of its industry peers.
The last Return On Invested Capital (4.73%) for CRM is above the 3 year average (0.90%), which is a sign of increasing profitability.
CRM has a better Profit Margin (7.63%) than 83.39% of its industry peers.
CRM's Operating Margin of 15.87% is amongst the best of the industry. CRM outperforms 88.45% of its industry peers.
In the last couple of years the Operating Margin of CRM has grown nicely.
CRM's Gross Margin of 74.99% is fine compared to the rest of the industry. CRM outperforms 69.31% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of CRM

Keep in mind

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.