Why NYSE:CRM Is a Standout High-Growth Stock in a Consolidation Phase.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether SALESFORCE INC (NYSE:CRM) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but SALESFORCE INC has surfaced on our radar for growth with base formation, warranting further examination.

Analyzing Growth Metrics

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:CRM has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 27.63% over the past year.
• 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 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.
• CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.88% yearly.
• The Revenue is expected to grow by 9.33% on average over the next years. This is quite good.

How do we evaluate the Health for NYSE:CRM?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:CRM, the assigned 7 for health provides valuable insights:

• An Altman-Z score of 6.60 indicates that CRM is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 6.60, CRM is doing good in the industry, outperforming 70.61% 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.
• CRM's Debt to FCF ratio of 0.71 is fine compared to the rest of the industry. CRM outperforms 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.

Profitability Insights: 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:

• 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.
• Looking at the Return On Invested Capital, with a value of 8.05%, CRM belongs to the top of the industry, outperforming 82.08% of the companies in the same industry.
• The 3 year average ROIC (3.04%) for CRM is below the current ROIC(8.05%), indicating increased profibility in the last year.
• CRM has a Profit Margin of 15.96%. This is amongst the best in the industry. CRM outperforms 81.72% of its industry peers.
• In the last couple of years the Profit Margin of CRM has grown nicely.
• CRM has a better Operating Margin (19.75%) than 87.46% of its industry peers.
• CRM's Operating Margin has improved in the last couple of years.
• The Gross Margin of CRM (76.94%) is better than 71.68% of its industry peers.

Why is NYSE:CRM a 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:

Although the technical rating is only medium, CRM does present a nice setup opportunity. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 324.14, 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

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.