NYSE:CRM: a strong growth stock preparing for the next leg up?.

Exploring Growth Potential: SALESFORCE INC (NYSE:CRM) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and SALESFORCE INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected SALESFORCE INC on our screen for growth with base formation, suggesting it merits a closer look.

Evaluating Growth: NYSE:CRM

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:CRM has achieved 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.
• 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.
• CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.53%.
• 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.
• CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.33% yearly.

Understanding NYSE:CRM's Health Score

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CRM has received a 7 out of 10:

• CRM has an Altman-Z score of 6.63. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of CRM (6.63) is better than 70.65% of its industry peers.
• 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.
• Looking at the Debt to FCF ratio, with a value of 0.71, CRM is in the better half of the industry, outperforming 74.64% of the companies in the same industry.
• 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.

Profitability Assessment of 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:

• CRM has a better Return On Assets (6.49%) than 80.07% of its industry peers.
• The Return On Equity of CRM (10.14%) is better than 78.99% of its industry peers.
• CRM has a Return On Invested Capital of 8.05%. This is amongst the best in the industry. CRM outperforms 82.25% 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 better Profit Margin (15.96%) than 81.52% of its industry peers.
• In the last couple of years the Profit Margin of CRM has grown nicely.
• CRM's Operating Margin of 19.75% is amongst the best of the industry. CRM outperforms 86.96% 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 71.74% of its industry peers.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:CRM has a 7 as its setup rating:

Although the technical rating is only medium, CRM does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 322.25, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill 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.

Keep in mind

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.