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

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.

Exploring NYSE:CRM's Growth

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 27.63%, which is quite impressive.
• 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.
• The Revenue has grown by 11.18% 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.
• CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.63% yearly.
• CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.16% yearly.

A Closer Look at Health 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:

• CRM has an Altman-Z score of 6.37. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
• CRM's Altman-Z score of 6.37 is fine compared to the rest of the industry. CRM outperforms 68.70% of its industry peers.
• CRM has a debt to FCF ratio of 0.74. This is a very positive value and a sign of high solvency as it would only need 0.74 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 0.74, CRM is doing good in the industry, outperforming 75.54% of the companies in the same industry.
• 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.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CRM has achieved a 8:

• The Return On Assets of CRM (6.11%) is better than 79.14% of its industry peers.
• CRM has a Return On Equity of 9.77%. This is in the better half of the industry: CRM outperforms 78.78% 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 82.01% of the companies in the same industry.
• The 3 year average ROIC (3.04%) for CRM is below the current ROIC(7.71%), indicating increased profibility in the last year.
• CRM has a better Profit Margin (15.44%) than 82.37% of its industry peers.
• CRM's Profit Margin has improved in the last couple of years.
• CRM's Operating Margin of 19.06% is amongst the best of the industry. CRM outperforms 86.69% of its industry peers.
• In the last couple of years the Operating Margin of CRM has grown nicely.
• With a decent Gross Margin value of 76.35%, CRM is doing good in the industry, outperforming 69.78% of the companies in the same industry.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:CRM this score is currently 8:

Besides having an excellent technical rating, CRM also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 341.73. Right above this resistance zone may be a good entry point. Another positive sign is the recent Pocket Pivot signal.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

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.