Despite its growth, NYSE:CRM remains within the realm of affordability.

Last update: May 31, 2024

Our stock screening tool has pinpointed SALESFORCE INC (NYSE:CRM) as a growth stock that isn't overvalued. NYSE:CRM is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Evaluating Growth: 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:

CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.34%, which is quite impressive.
Measured over the past years, CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.05% on average per year.
Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 11.18% in the last year.
Measured over the past years, CRM shows a very strong growth in Revenue. The Revenue has been growing by 21.28% on average per year.
The Earnings Per Share is expected to grow by 13.53% on average over the next years. This is quite good.
Based on estimates for the next years, CRM will show a quite strong growth in Revenue. The Revenue will grow by 9.92% on average per year.

Valuation Assessment of NYSE:CRM

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:CRM, the assigned 6 reflects its valuation:

CRM's Price/Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 79.27% 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 78.55% of the companies are valued more expensively.
CRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRM is cheaper than 84.73% of the companies in the same industry.
80.36% of the companies in the same industry are more expensive than CRM, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of CRM may justify a higher PE ratio.
CRM's earnings are expected to grow with 16.44% in the coming years. This may justify a more expensive valuation.

Exploring NYSE:CRM's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:CRM has earned a 7 out of 10:

An Altman-Z score of 3.89 indicates that CRM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.89, CRM is in the better half of the industry, outperforming 62.55% of the companies in the same industry.
The Debt to FCF ratio of CRM is 0.99, which is an excellent value as it means it would take CRM, only 0.99 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CRM (0.99) is better than 75.64% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that CRM is not too dependend on debt financing.
CRM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Examination for NYSE:CRM

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CRM, the assigned 8 is a significant indicator of profitability:

With a decent Return On Assets value of 4.14%, CRM is doing good in the industry, outperforming 76.36% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.93%, CRM is in the better half of the industry, outperforming 76.73% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.48%, CRM belongs to the top of the industry, outperforming 82.91% 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.
With an excellent Profit Margin value of 11.87%, CRM belongs to the best of the industry, outperforming 81.45% of the companies in the same industry.
CRM's Profit Margin has improved in the last couple of years.
CRM has a Operating Margin of 17.21%. This is amongst the best in the industry. CRM outperforms 87.27% of its industry peers.
In the last couple of years the Operating Margin of CRM has grown nicely.
The Gross Margin of CRM (75.50%) is better than 69.45% 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

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.