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Is SALESFORCE INC (NYSE:CRM) a Strong Candidate for Quality Investing?

By Mill Chart

Last update: Dec 16, 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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Highlighting Notable Quality Metrics of NYSE:CRM.

  • 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.
  • With a notable ROIC excluding cash and goodwill at 95.87%, SALESFORCE INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a Debt/Free Cash Flow Ratio of 0.96, SALESFORCE INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • SALESFORCE INC exhibits impressive Profit Quality (5-year) with a 1.0K% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • With a robust 5-year EBIT growth of 60.57%, SALESFORCE INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, SALESFORCE INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental analysis of NYSE:CRM

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to CRM. CRM was compared to 278 industry peers in the Software industry. CRM gets an excellent profitability rating and is at the same time showing great financial health properties. 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!

For an up to date full fundamental analysis you can check the fundamental report of CRM

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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