Exploring the Growth Potential of NYSE:CRM as It Nears a Breakout.

In this article, we'll take a closer look at SALESFORCE INC (NYSE:CRM) as a potential candidate for growth investing. While it's important for investors to conduct their own research, SALESFORCE INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Understanding NYSE:CRM's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:CRM has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 50.34% over the past year.
• CRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.05% yearly.
• The Revenue has grown by 11.04% 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 21.28% on average per year.
• Based on estimates for the next years, CRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.63% on average per year.
• The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.

Understanding NYSE:CRM's Health

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 7 out of 10:

• CRM has an Altman-Z score of 4.86. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
• CRM has a better Altman-Z score (4.86) than 66.78% of its industry peers.
• CRM has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.83, CRM is in the better half of the industry, outperforming 76.68% 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.
• 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 Assessment of NYSE:CRM

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CRM scores a 8 out of 10:

• CRM has a better Return On Assets (5.69%) than 80.57% of its industry peers.
• The Return On Equity of CRM (9.17%) is better than 79.86% of its industry peers.
• With an excellent Return On Invested Capital value of 7.13%, CRM belongs to the best of the industry, outperforming 83.39% of the companies in the same industry.
• The 3 year average ROIC (3.04%) for CRM is below the current ROIC(7.13%), indicating increased profibility in the last year.
• The Profit Margin of CRM (15.30%) is better than 84.45% of its industry peers.
• CRM's Profit Margin has improved in the last couple of years.
• The Operating Margin of CRM (18.45%) is better than 89.05% of its industry peers.
• In the last couple of years the Operating Margin of CRM has grown nicely.
• CRM has a Gross Margin of 76.00%. This is in the better half of the industry: CRM outperforms 71.02% of its industry peers.

How do we evaluate the setup for NYSE:CRM?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:CRM currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

CRM has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 254.24. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for CRM in the last couple of days, which is a good sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of CRM

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

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.