For those who appreciate growth without the sticker shock, NYSE:CRM is worth considering.

Last update: Aug 26, 2024

SALESFORCE INC (NYSE:CRM) has caught the eye of our stock screener as an affordable growth stock. NYSE:CRM is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Growth Examination for NYSE:CRM

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:CRM scores a 8 out of 10:

The Earnings Per Share has grown by an impressive 50.34% over the past year.
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 11.04% 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.
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.
Based on estimates for the next years, CRM will show a quite strong growth in Revenue. The Revenue will grow by 10.16% on average per year.

Valuation Assessment of NYSE:CRM

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:CRM has received a 5 out of 10:

Based on the Price/Earnings ratio, CRM is valued a bit cheaper than 72.54% of the companies in the same industry.
72.54% of the companies in the same industry are more expensive than CRM, based on the Price/Forward Earnings ratio.
Based on the Enterprise Value to EBITDA ratio, CRM is valued a bit cheaper than the industry average as 78.17% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CRM is valued cheaper than 82.39% of the companies in the same industry.
The excellent profitability rating of CRM may justify a higher PE ratio.
CRM's earnings are expected to grow with 15.40% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NYSE:CRM

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:CRM, the assigned 7 for health provides valuable insights:

An Altman-Z score of 5.02 indicates that CRM is not in any danger for bankruptcy at the moment.
CRM has a better Altman-Z score (5.02) than 67.61% 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.
CRM has a better Debt to FCF ratio (0.83) than 76.41% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that CRM is not too dependend on debt financing.
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.

A Closer Look at Profitability for NYSE:CRM

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CRM, the assigned 8 is noteworthy for profitability:

CRM has a better Return On Assets (5.69%) than 79.58% of its industry peers.
CRM has a better Return On Equity (9.17%) than 79.23% of its industry peers.
With an excellent Return On Invested Capital value of 7.13%, CRM belongs to the best of the industry, outperforming 82.04% 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 83.80% of its industry peers.
In the last couple of years the Profit Margin of CRM has grown nicely.
The Operating Margin of CRM (18.45%) is better than 88.38% of its industry peers.
CRM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 76.00%, CRM is doing good in the industry, outperforming 71.13% of the companies in the same industry.

More Affordable Growth stocks can be found 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.