SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
BIT:1CRM - Euronext Milan - US79466L3024 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1CRM. 1CRM was compared to 99 industry peers in the Software industry. While 1CRM has a great profitability rating, there are some minor concerns on its financial health. 1CRM is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make 1CRM a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
1CRM had positive earnings in the past year.
1CRM had a positive operating cash flow in the past year.
In the past 5 years 1CRM has always been profitable.
In the past 5 years 1CRM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1CRM (6.02%) is better than 65.66% of its industry peers.
1CRM has a better Return On Equity (10.13%) than 64.65% of its industry peers.
1CRM's Return On Invested Capital of 8.53% is fine compared to the rest of the industry. 1CRM outperforms 68.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1CRM is significantly below the industry average of 11.50%.
The 3 year average ROIC (5.83%) for 1CRM is below the current ROIC(8.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 10.13% | ||
| ROIC | 8.53% |
ROA(3y)3.46%
ROA(5y)3.61%
ROE(3y)5.81%
ROE(5y)5.94%
ROIC(3y)5.83%
ROIC(5y)3.79%
1.3 Margins
1CRM has a better Profit Margin (16.35%) than 75.76% of its industry peers.
In the last couple of years the Profit Margin of 1CRM has grown nicely.
Looking at the Operating Margin, with a value of 20.23%, 1CRM is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
1CRM's Operating Margin has improved in the last couple of years.
1CRM has a better Gross Margin (77.19%) than 63.64% of its industry peers.
1CRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.23% | ||
| PM (TTM) | 16.35% | ||
| GM | 77.19% |
OM growth 3Y107.25%
OM growth 5Y49.51%
PM growth 3Y44.23%
PM growth 5Y85.88%
GM growth 3Y1.66%
GM growth 5Y0.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1CRM is destroying value.
Compared to 1 year ago, 1CRM has less shares outstanding
1CRM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1CRM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.95 indicates that 1CRM is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1CRM (4.95) is better than 69.70% of its industry peers.
1CRM has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
1CRM's Debt to FCF ratio of 0.68 is amongst the best of the industry. 1CRM outperforms 83.84% of its industry peers.
1CRM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
1CRM's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. 1CRM outperforms 71.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.95 |
ROIC/WACC0.61
WACC13.89%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 1CRM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.06, 1CRM is not doing good in the industry: 64.65% of the companies in the same industry are doing better.
A Quick Ratio of 1.06 indicates that 1CRM should not have too much problems paying its short term obligations.
1CRM has a worse Quick ratio (1.06) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.12% over the past year.
Measured over the past years, 1CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.71% on average per year.
Looking at the last year, 1CRM shows a quite strong growth in Revenue. The Revenue has grown by 8.72% in the last year.
Measured over the past years, 1CRM shows a quite strong growth in Revenue. The Revenue has been growing by 17.25% on average per year.
EPS 1Y (TTM)24.12%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%21.4%
Revenue 1Y (TTM)8.72%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.6%
3.2 Future
Based on estimates for the next years, 1CRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.23% on average per year.
Based on estimates for the next years, 1CRM will show a quite strong growth in Revenue. The Revenue will grow by 9.46% on average per year.
EPS Next Y10.71%
EPS Next 2Y12.06%
EPS Next 3Y13.2%
EPS Next 5Y11.23%
Revenue Next Year7.55%
Revenue Next 2Y8.39%
Revenue Next 3Y9.07%
Revenue Next 5Y9.46%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.06 indicates a quite expensive valuation of 1CRM.
Based on the Price/Earnings ratio, 1CRM is valued a bit cheaper than 74.75% of the companies in the same industry.
1CRM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
1CRM is valuated quite expensively with a Price/Forward Earnings ratio of 26.26.
1CRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 64.65% of the companies in the same industry.
1CRM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.06 | ||
| Fwd PE | 26.26 |
4.2 Price Multiples
1CRM's Enterprise Value to EBITDA is on the same level as the industry average.
1CRM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.9 | ||
| EV/EBITDA | 24.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1CRM does not grow enough to justify the current Price/Earnings ratio.
1CRM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1CRM's earnings are expected to grow with 13.20% in the coming years.
PEG (NY)2.71
PEG (5Y)1.05
EPS Next 2Y12.06%
EPS Next 3Y13.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.56%, 1CRM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.93, 1CRM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, 1CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
24.80% of the earnings are spent on dividend by 1CRM. This is a low number and sustainable payout ratio.
DP24.8%
EPS Next 2Y12.06%
EPS Next 3Y13.2%
BIT:1CRM (3/6/2025, 7:00:00 PM)
272.9
-18.35 (-6.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners82.99%
Inst Owner ChangeN/A
Ins Owners2.56%
Ins Owner ChangeN/A
Market Cap262.26B
Analysts78.95
Price Target374.41 (37.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend1.47
Dividend Growth(5Y)N/A
DP24.8%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.61%
Min EPS beat(2)-2.3%
Max EPS beat(2)5.52%
EPS beat(4)3
Avg EPS beat(4)3.11%
Min EPS beat(4)-2.3%
Max EPS beat(4)7.51%
EPS beat(8)7
Avg EPS beat(8)3.58%
EPS beat(12)11
Avg EPS beat(12)6.98%
EPS beat(16)15
Avg EPS beat(16)14.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-0.54%
Revenue beat(12)2
Avg Revenue beat(12)-0.2%
Revenue beat(16)5
Avg Revenue beat(16)-0.08%
PT rev (1m)-2.4%
PT rev (3m)16.65%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.06 | ||
| Fwd PE | 26.26 | ||
| P/S | 7.51 | ||
| P/FCF | 22.9 | ||
| P/OCF | 21.75 | ||
| P/B | 4.65 | ||
| P/tB | 52.13 | ||
| EV/EBITDA | 24.58 |
EPS(TTM)9.39
EY3.44%
EPS(NY)10.39
Fwd EY3.81%
FCF(TTM)11.92
FCFY4.37%
OCF(TTM)12.55
OCFY4.6%
SpS36.32
BVpS58.63
TBVpS5.24
PEG (NY)2.71
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 10.13% | ||
| ROCE | 10.23% | ||
| ROIC | 8.53% | ||
| ROICexc | 10.5% | ||
| ROICexgc | 122.89% | ||
| OM | 20.23% | ||
| PM (TTM) | 16.35% | ||
| GM | 77.19% | ||
| FCFM | 32.81% |
ROA(3y)3.46%
ROA(5y)3.61%
ROE(3y)5.81%
ROE(5y)5.94%
ROIC(3y)5.83%
ROIC(5y)3.79%
ROICexc(3y)7.18%
ROICexc(5y)4.68%
ROICexgc(3y)84.54%
ROICexgc(5y)53.64%
ROCE(3y)6.99%
ROCE(5y)4.55%
ROICexcg growth 3Y144.43%
ROICexcg growth 5Y51.1%
ROICexc growth 3Y136.01%
ROICexc growth 5Y54.45%
OM growth 3Y107.25%
OM growth 5Y49.51%
PM growth 3Y44.23%
PM growth 5Y85.88%
GM growth 3Y1.66%
GM growth 5Y0.52%
F-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 18.92% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.49% | ||
| Profit Quality | 200.65% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.95 |
F-Score8
WACC13.89%
ROIC/WACC0.61
Cap/Depr(3y)19.53%
Cap/Depr(5y)21.06%
Cap/Sales(3y)2.13%
Cap/Sales(5y)2.49%
Profit Quality(3y)1155.13%
Profit Quality(5y)786.34%
High Growth Momentum
Growth
EPS 1Y (TTM)24.12%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%21.4%
EPS Next Y10.71%
EPS Next 2Y12.06%
EPS Next 3Y13.2%
EPS Next 5Y11.23%
Revenue 1Y (TTM)8.72%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.6%
Revenue Next Year7.55%
Revenue Next 2Y8.39%
Revenue Next 3Y9.07%
Revenue Next 5Y9.46%
EBIT growth 1Y27.79%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year36.39%
EBIT Next 3Y11.06%
EBIT Next 5Y11.24%
FCF growth 1Y30.91%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y27.93%
OCF growth 3Y29.7%
OCF growth 5Y24.76%