Why NYSE:CRM Is a Standout High-Growth Stock in a Consolidation Phase.

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

Assessing Growth for NYSE:CRM

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:CRM has achieved a 8 out of 10:

• The Earnings Per Share has grown by an impressive 72.34% over the past year.
• The Earnings Per Share has been growing by 31.21% on average over the past years. This is a very strong growth
• The Revenue has grown by 12.08% in the past year. This is quite good.
• 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.
• The Earnings Per Share is expected to grow by 21.32% on average over the next years. This is a very strong growth
• 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 Health for NYSE:CRM

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CRM has received a 5 out of 10:

• CRM has an Altman-Z score of 6.12. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
• CRM's Altman-Z score of 6.12 is fine compared to the rest of the industry. CRM outperforms 74.19% 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.
• The Debt to FCF ratio of CRM (1.07) is better than 78.14% of its industry peers.
• A Debt/Equity ratio of 0.15 indicates that CRM is not too dependend on debt financing.

What does the Profitability looks like for NYSE:CRM

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CRM, the assigned 7 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 2.85%, CRM is in the better half of the industry, outperforming 77.06% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 4.46%, CRM is in the better half of the industry, outperforming 75.99% of the companies in the same industry.
• CRM's Return On Invested Capital of 4.73% is fine compared to the rest of the industry. CRM outperforms 78.49% of its industry peers.
• The 3 year average ROIC (0.90%) for CRM is below the current ROIC(4.73%), indicating increased profibility in the last year.
• CRM's Profit Margin of 7.63% is amongst the best of the industry. CRM outperforms 81.00% of its industry peers.
• With an excellent Operating Margin value of 15.87%, CRM belongs to the best of the industry, outperforming 88.17% of the companies in the same industry.
• 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 68.82% of its industry peers.

How do we evaluate the setup for NYSE:CRM?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:CRM has a 8 as its setup rating:

CRM has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 305.27, a Stop Loss order could be placed below this zone.

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

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

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

Keep in mind

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.