Investors seeking growth at a reasonable cost should explore NYSE:CRM.

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.

Evaluating Growth: NYSE:CRM

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CRM, the assigned 8 reflects its growth potential:

• 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.
• The Earnings Per Share has been growing by 26.05% on average over the past years. This is a very strong growth
• The Revenue has grown by 9.53% in the past year. This is quite good.
• 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 13.88% on average over the next years. This is quite good.
• The Revenue is expected to grow by 9.33% on average over the next years. This is quite good.

Valuation Insights: NYSE:CRM

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:CRM has earned a 5 for valuation:

• 70.97% of the companies in the same industry are more expensive than CRM, based on the Price/Earnings ratio.
• CRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 70.61% of the companies in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 75.99% of the companies listed in the same industry.
• CRM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CRM is cheaper than 78.85% of the companies in the same industry.
• The excellent profitability rating of CRM may justify a higher PE ratio.
• CRM's earnings are expected to grow with 16.04% in the coming years. This may justify a more expensive valuation.

Health Assessment of NYSE:CRM

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CRM has achieved a 7 out of 10:

• An Altman-Z score of 6.52 indicates that CRM is not in any danger for bankruptcy at the moment.
• CRM has a better Altman-Z score (6.52) than 70.25% of its industry peers.
• The Debt to FCF ratio of CRM is 0.71, which is an excellent value as it means it would take CRM, only 0.71 years of fcf income to pay off all of its debts.
• CRM has a better Debt to FCF ratio (0.71) than 74.55% of its industry peers.
• CRM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
• 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.

How do we evaluate the Profitability for NYSE:CRM?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CRM, the assigned 8 is noteworthy for profitability:

• The Return On Assets of CRM (6.49%) is better than 80.29% of its industry peers.
• CRM has a Return On Equity of 10.14%. This is in the better half of the industry: CRM outperforms 78.85% of its industry peers.
• CRM has a Return On Invested Capital of 8.05%. This is amongst the best in 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.
• The Profit Margin of CRM (15.96%) is better than 81.72% of its industry peers.
• CRM's Profit Margin has improved in the last couple of years.
• 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.
• With a decent Gross Margin value of 76.94%, CRM is doing good in the industry, outperforming 72.04% of the companies in the same industry.

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.