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

By Mill Chart

Last update: Feb 12, 2024

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 shown strong performance in revenue growth over the past 5 years, with a 24.36% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a robust ROIC excluding cash and goodwill at 62.6%, 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.
  • SALESFORCE INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.07, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • 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.
  • SALESFORCE INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 32.56%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • 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 of NYSE:CRM

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall CRM gets a fundamental rating of 6 out of 10. We evaluated CRM against 279 industry peers in the Software industry. While CRM has a great profitability rating, there are some minor concerns on its financial health. CRM is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, CRM could be worth investigating further 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.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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