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Why the quality investor may take a look at SALESFORCE INC (NYSE:CRM).

By Mill Chart

Last update: Mar 25, 2024

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.

Why NYSE:CRM may be interesting for quality investors.

  • Over the past 5 years, SALESFORCE INC has experienced impressive revenue growth, with 21.28% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • SALESFORCE INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 92.93% 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 0.99, 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 exhibits impressive Profit Quality (5-year) with a 1.0K% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • With a robust 5-year EBIT growth of 60.57%, SALESFORCE INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • The EBIT 5-year growth of SALESFORCE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

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 7 out of 10 in our fundamental rating. CRM was compared to 279 industry peers in the Software industry. Both the health and profitability get an excellent rating, making CRM a very profitable company, without any liquidiy or solvency issues. CRM is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes CRM very considerable for growth and quality investing!

Our latest full fundamental report of CRM contains the most current fundamental analsysis.

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

Disclaimer

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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