Exploring the Growth Potential of NYSE:CRM as It Nears a Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if SALESFORCE INC (NYSE:CRM) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted SALESFORCE INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Growth Insights: NYSE:CRM

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:CRM boasts a 8 out of 10:

• 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.
• CRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.05% yearly.
• Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 9.53% 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.
• The Earnings Per Share is expected to grow by 14.63% on average over the next years. This is quite good.
• CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.16% yearly.

Health Examination for NYSE:CRM

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:CRM has earned a 7 out of 10:

• An Altman-Z score of 6.95 indicates that CRM is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 6.95, CRM is doing good in the industry, outperforming 71.68% of the companies in the same industry.
• CRM has a debt to FCF ratio of 0.71. This is a very positive value and a sign of high solvency as it would only need 0.71 years to pay back of all of its debts.
• The Debt to FCF ratio of CRM (0.71) is better than 75.27% 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.

How do we evaluate the Profitability for NYSE:CRM?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CRM scores a 8 out of 10:

• The Return On Assets of CRM (6.49%) is better than 80.65% of its industry peers.
• CRM has a Return On Equity of 10.14%. This is in the better half of the industry: CRM outperforms 79.21% of its industry peers.
• CRM's Return On Invested Capital of 8.05% is amongst the best of the industry. CRM outperforms 82.08% of its industry peers.
• The 3 year average ROIC (3.04%) for CRM is below the current ROIC(8.05%), indicating increased profibility in the last year.
• CRM's Profit Margin of 15.96% is amongst the best of the industry. CRM outperforms 82.44% 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 19.75%, CRM belongs to the best of the industry, outperforming 87.46% of the companies in the same industry.
• CRM's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 76.94%, CRM is in the better half of the industry, outperforming 72.04% 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 very little resistance above the current price. There is a support zone below the current price at 337.15, a Stop Loss order could be placed below this zone.

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

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

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

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.