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NYSE:CRM qualifies as a high growth stock and is consolidating.

By Mill Chart

Last update: Aug 13, 2024

Exploring Growth Potential: SALESFORCE INC (NYSE:CRM) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and SALESFORCE INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected SALESFORCE INC on our screen for growth with base formation, suggesting it merits a closer look.


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Growth Insights: NYSE:CRM

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.
  • Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 11.04% in the last year.
  • CRM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.28% yearly.
  • The Earnings Per Share is expected to grow by 14.63% 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 10.16% yearly.

Understanding NYSE:CRM's Health

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:

  • An Altman-Z score of 4.84 indicates that CRM is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.84, CRM is in the better half of the industry, outperforming 67.61% of the companies in the same industry.
  • 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.
  • With a decent Debt to FCF ratio value of 0.83, CRM is doing good in the industry, outperforming 76.06% 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.

Exploring NYSE:CRM's Profitability

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:

  • With an excellent Return On Assets value of 5.69%, CRM belongs to the best of the industry, outperforming 80.63% of the companies in the same industry.
  • CRM has a Return On Equity of 9.17%. This is amongst the best in the industry. CRM outperforms 80.28% of its industry peers.
  • CRM has a Return On Invested Capital of 7.13%. This is amongst the best in the industry. CRM outperforms 83.10% of its industry peers.
  • The last Return On Invested Capital (7.13%) for CRM is above the 3 year average (3.04%), which is a sign of increasing profitability.
  • CRM has a Profit Margin of 15.30%. This is amongst the best in the industry. CRM outperforms 83.45% of its industry peers.
  • CRM's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 18.45%, CRM belongs to the top of the industry, outperforming 88.73% of the companies in the same industry.
  • CRM's Operating Margin has improved in the last couple of years.
  • CRM's Gross Margin of 76.00% is fine compared to the rest of the industry. CRM outperforms 71.48% of its industry peers.

How does the Setup look for NYSE:CRM

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:CRM currently has a 8 as setup rating:

CRM has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 255.71. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 251.21, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill 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

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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