Investors should take note of NYSE:CRM, a growth stock that remains attractively priced.

Last update: Oct 8, 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.

Growth Assessment of NYSE:CRM

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CRM has earned a 8 for growth:

CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.43%, which is quite impressive.
The Earnings Per Share has been growing by 26.05% on average over the past years. This is a very strong growth
CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.26%.
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 14.63% 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 10.16% on average per year.

Valuation Assessment of NYSE:CRM

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:CRM was assigned a score of 5 for valuation:

CRM's Price/Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 70.92% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than 70.57% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, CRM is valued a bit cheaper than the industry average as 75.89% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 78.72% of the companies listed in the same industry.
The excellent profitability rating of CRM may justify a higher PE ratio.
CRM's earnings are expected to grow with 15.98% in the coming years. This may justify a more expensive valuation.

Health Analysis for NYSE:CRM

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:

An Altman-Z score of 5.59 indicates that CRM is not in any danger for bankruptcy at the moment.
CRM has a Altman-Z score of 5.59. This is in the better half of the industry: CRM outperforms 69.86% of its industry peers.
The Debt to FCF ratio of CRM is 0.74, which is an excellent value as it means it would take CRM, only 0.74 years of fcf income to pay off all of its debts.
CRM has a Debt to FCF ratio of 0.74. This is in the better half of the industry: CRM outperforms 75.18% of its industry peers.
A Debt/Equity ratio of 0.15 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 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 6.11%, CRM belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
CRM has a Return On Equity of 9.77%. This is amongst the best in the industry. CRM outperforms 80.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.71%, CRM belongs to the top of the industry, outperforming 82.27% of the companies in the same industry.
The last Return On Invested Capital (7.71%) for CRM is above the 3 year average (3.04%), which is a sign of increasing profitability.
CRM's Profit Margin of 15.44% is amongst the best of the industry. CRM outperforms 82.62% of its industry peers.
In the last couple of years the Profit Margin of CRM has grown nicely.
With an excellent Operating Margin value of 19.06%, CRM belongs to the best of the industry, outperforming 88.30% of the companies in the same industry.
CRM's Operating Margin has improved in the last couple of years.
The Gross Margin of CRM (76.35%) is better than 71.28% of its industry peers.

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

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