Looking for growth without the hefty price tag? Consider NYSE:CRM.

Last update: May 3, 2024

Our stock screener has singled out SALESFORCE INC (NYSE:CRM) as an attractive growth opportunity. NYSE:CRM is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

How do we evaluate the Growth for NYSE:CRM?

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CRM, the assigned 8 reflects its growth potential:

CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.38%, which is quite impressive.
The Earnings Per Share has been growing by 26.05% 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 11.18% in the last year.
The Revenue has been growing by 21.28% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 13.63% on average over the next years. This is quite good.
CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.59% yearly.

Evaluating Valuation: NYSE:CRM

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:CRM scores a 5 out of 10:

CRM's Price/Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 72.99% of the companies in the same industry.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 72.99% of the companies listed in the same industry.
80.66% of the companies in the same industry are more expensive than CRM, based on the Enterprise Value to EBITDA ratio.
CRM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CRM is cheaper than 79.93% of the companies in the same industry.
CRM has an outstanding profitability rating, which may justify a higher PE ratio.
CRM's earnings are expected to grow with 16.40% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NYSE:CRM

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:CRM, the assigned 7 reflects its health status:

CRM has an Altman-Z score of 4.63. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
CRM has a Altman-Z score of 4.63. This is in the better half of the industry: CRM outperforms 68.98% of its industry peers.
CRM has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.99, CRM is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
CRM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The current and quick ratio evaluation for CRM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

What does the Profitability looks like for NYSE:CRM

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CRM has earned a 8 out of 10:

CRM has a Return On Assets of 4.14%. This is in the better half of the industry: CRM outperforms 78.10% of its industry peers.
CRM has a better Return On Equity (6.93%) than 78.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.48%, CRM belongs to the top of the industry, outperforming 82.85% of the companies in the same industry.
The last Return On Invested Capital (6.48%) for CRM is above the 3 year average (3.04%), which is a sign of increasing profitability.
CRM has a Profit Margin of 11.87%. This is amongst the best in the industry. CRM outperforms 83.58% of its industry peers.
CRM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.21%, CRM belongs to the best of the industry, outperforming 88.69% of the companies in the same industry.
CRM's Operating Margin has improved in the last couple of years.
CRM has a Gross Margin of 75.50%. This is in the better half of the industry: CRM outperforms 70.07% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill 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 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.