In the world of growth stocks, NYSE:CRM shines as a value proposition.

Consider SALESFORCE INC (NYSE:CRM) as an affordable growth stock, identified by our stock screening tool. NYSE:CRM is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Assessing Growth for 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.
• The Earnings Per Share has been growing by 26.05% on average over the past years. This is a very strong growth
• CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.53%.
• 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.
• The Earnings Per Share is expected to grow by 13.88% 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 9.33% yearly.

Valuation Analysis for NYSE:CRM

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:CRM boasts a 5 out of 10:

• 69.31% of the companies in the same industry are more expensive than CRM, based on the Price/Earnings ratio.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 70.76% of the companies listed in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 96.21. CRM is valued rather cheaply when compared to this.
• Based on the Enterprise Value to EBITDA ratio, CRM is valued a bit cheaper than 77.62% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 79.42% of the companies listed in the same industry.
• The excellent profitability rating of CRM may justify a higher PE ratio.
• CRM's earnings are expected to grow with 15.90% in the coming years. This may justify a more expensive valuation.

ChartMill's Evaluation of Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:CRM, the assigned 7 reflects its health status:

• An Altman-Z score of 6.71 indicates that CRM is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 6.71, CRM is in the better half of the industry, outperforming 71.12% 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 has a better Debt to FCF ratio (0.71) than 74.37% of its industry peers.
• A Debt/Equity ratio of 0.14 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.

Profitability Insights: 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:

• With an excellent Return On Assets value of 6.49%, CRM belongs to the best of the industry, outperforming 80.14% of the companies in the same industry.
• The Return On Equity of CRM (10.14%) is better than 79.06% of its industry peers.
• CRM has a Return On Invested Capital of 8.05%. This is amongst the best in the industry. CRM outperforms 82.31% 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 has a Profit Margin of 15.96%. This is amongst the best in the industry. CRM outperforms 81.59% 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 87.00% of its industry peers.
• CRM's Operating Margin has improved in the last couple of years.
• CRM has a Gross Margin of 76.94%. This is in the better half of the industry: CRM outperforms 71.84% of its industry peers.

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

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

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.