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Is NYSE:CRM suited for quality investing?

By Mill Chart

Last update: Oct 8, 2024

In this article we will dive into SALESFORCE INC (NYSE:CRM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed SALESFORCE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.


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Why NYSE:CRM may be interesting for quality investors.

  • SALESFORCE INC has shown strong performance in revenue growth over the past 5 years, with a 21.28% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • SALESFORCE INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 106.0% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • SALESFORCE INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.74, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • The Profit Quality (5-year) of SALESFORCE INC stands at 1.0K%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • SALESFORCE INC has consistently achieved strong EBIT growth over the past 5 years, with a 60.57% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • The EBIT 5-year growth of SALESFORCE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, CRM scores 7 out of 10 in our fundamental rating. CRM was compared to 283 industry peers in the Software industry. CRM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CRM is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make CRM suitable for growth and quality investing!

Check the latest full fundamental report of CRM for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice. 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.

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