SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CRM - US79466L3024 - Common Stock
215.55 EUR
-7.85 (-3.51%)
We assign a fundamental rating of 6 out of 10 to 1CRM. 1CRM was compared to 105 industry peers in the Software industry. While 1CRM has a great profitability rating, there are some minor concerns on its financial health. 1CRM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1CRM was profitable.
In the past year 1CRM had a positive cash flow from operations.
In the past 5 years 1CRM has always been profitable.
Each year in the past 5 years 1CRM had a positive operating cash flow.
1.2 Ratios
1CRM's Return On Assets of 7.59% is fine compared to the rest of the industry. 1CRM outperforms 65.52% of its industry peers.
1CRM has a Return On Equity of 12.03%. This is comparable to the rest of the industry: 1CRM outperforms 59.48% of its industry peers.
1CRM has a Return On Invested Capital of 10.05%. This is in the better half of the industry: 1CRM outperforms 72.41% of its industry peers.
1CRM had an Average Return On Invested Capital over the past 3 years of 5.83%. This is significantly below the industry average of 13.30%.
The last Return On Invested Capital (10.05%) for 1CRM is above the 3 year average (5.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 12.03% | ||
| ROIC | 10.05% |
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
Looking at the Profit Margin, with a value of 17.91%, 1CRM is in the better half of the industry, outperforming 74.14% of the companies in the same industry.
1CRM's Profit Margin has improved in the last couple of years.
1CRM's Operating Margin of 22.03% is amongst the best of the industry. 1CRM outperforms 80.17% of its industry peers.
1CRM's Operating Margin has improved in the last couple of years.
1CRM has a Gross Margin of 77.73%. This is in the better half of the industry: 1CRM outperforms 62.93% of its industry peers.
1CRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.03% | ||
| PM (TTM) | 17.91% | ||
| GM | 77.73% |
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 5.16 indicates that 1CRM is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1CRM (5.16) is better than 68.97% of its industry peers.
The Debt to FCF ratio of 1CRM is 0.65, which is an excellent value as it means it would take 1CRM, only 0.65 years of fcf income to pay off all of its debts.
1CRM has a Debt to FCF ratio of 0.65. This is amongst the best in the industry. 1CRM outperforms 84.48% 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 68.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 5.16 |
ROIC/WACC0.93
WACC10.84%
2.3 Liquidity
1CRM has a Current Ratio of 0.98. This is a bad value and indicates that 1CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
1CRM has a worse Current ratio (0.98) than 72.41% of its industry peers.
A Quick Ratio of 0.98 indicates that 1CRM may have some problems paying its short term obligations.
1CRM's Quick ratio of 0.98 is on the low side compared to the rest of the industry. 1CRM is outperformed by 71.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.76% over the past year.
1CRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.71% yearly.
1CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.41%.
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)18.76%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%34.85%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
3.2 Future
The Earnings Per Share is expected to grow by 13.63% on average over the next years. This is quite good.
Based on estimates for the next years, 1CRM will show a quite strong growth in Revenue. The Revenue will grow by 9.37% on average per year.
EPS Next Y16.58%
EPS Next 2Y13.6%
EPS Next 3Y13.58%
EPS Next 5Y13.63%
Revenue Next Year9.34%
Revenue Next 2Y10.22%
Revenue Next 3Y9.9%
Revenue Next 5Y9.37%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.06, which indicates a rather expensive current valuation of 1CRM.
76.72% of the companies in the same industry are more expensive than 1CRM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1CRM to the average of the S&P500 Index (26.92), we can say 1CRM is valued inline with the index average.
1CRM is valuated rather expensively with a Price/Forward Earnings ratio of 19.32.
Based on the Price/Forward Earnings ratio, 1CRM is valued a bit cheaper than the industry average as 71.55% of the companies are valued more expensively.
1CRM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1CRM is valued a bit cheaper than the industry average as 60.34% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1CRM indicates a somewhat cheap valuation: 1CRM is cheaper than 79.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.76 | ||
| EV/EBITDA | 19.29 |
4.3 Compensation for Growth
1CRM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1CRM may justify a higher PE ratio.
A more expensive valuation may be justified as 1CRM's earnings are expected to grow with 13.58% in the coming years.
PEG (NY)1.33
PEG (5Y)0.8
EPS Next 2Y13.6%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
1CRM has a yearly dividend return of 0.63%, which is pretty low.
1CRM's Dividend Yield is a higher than the industry average which is at 0.70.
Compared to an average S&P500 Dividend Yield of 2.00, 1CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1CRM pays out 21.86% of its income as dividend. This is a sustainable payout ratio.
DP21.86%
EPS Next 2Y13.6%
EPS Next 3Y13.58%
BIT:1CRM (12/16/2025, 7:00:00 PM)
215.55
-7.85 (-3.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.15%
Inst Owner ChangeN/A
Ins Owners2.53%
Ins Owner ChangeN/A
Market Cap205.20B
Revenue(TTM)40.32B
Net Income(TTM)7.22B
Analysts79.31
Price Target285.17 (32.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend1.35
Dividend Growth(5Y)N/A
DP21.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.16%
Min EPS beat(2)3.73%
Max EPS beat(2)12.58%
EPS beat(4)4
Avg EPS beat(4)5.55%
Min EPS beat(4)0.37%
Max EPS beat(4)12.58%
EPS beat(8)7
Avg EPS beat(8)3.66%
EPS beat(12)11
Avg EPS beat(12)5.61%
EPS beat(16)15
Avg EPS beat(16)7.06%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.55%
Revenue beat(12)2
Avg Revenue beat(12)-0.14%
Revenue beat(16)3
Avg Revenue beat(16)-0.22%
PT rev (1m)-1.18%
PT rev (3m)-1.76%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)3.4%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)2.47%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 19.32 | ||
| P/S | 6 | ||
| P/FCF | 18.76 | ||
| P/OCF | 17.91 | ||
| P/B | 4.03 | ||
| P/tB | 59.38 | ||
| EV/EBITDA | 19.29 |
EPS(TTM)9.77
EY4.53%
EPS(NY)11.16
Fwd EY5.18%
FCF(TTM)11.49
FCFY5.33%
OCF(TTM)12.03
OCFY5.58%
SpS35.93
BVpS53.49
TBVpS3.63
PEG (NY)1.33
PEG (5Y)0.8
Graham Number108.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 12.03% | ||
| ROCE | 12.04% | ||
| ROIC | 10.05% | ||
| ROICexc | 11.87% | ||
| ROICexgc | 114.64% | ||
| OM | 22.03% | ||
| PM (TTM) | 17.91% | ||
| GM | 77.73% | ||
| FCFM | 31.98% |
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%
ROICexgc growth 3Y144.43%
ROICexgc 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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 17.92% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 38.61 | ||
| Cash Conversion | 110.06% | ||
| Profit Quality | 178.55% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 5.16 |
F-Score8
WACC10.84%
ROIC/WACC0.93
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)18.76%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%34.85%
EPS Next Y16.58%
EPS Next 2Y13.6%
EPS Next 3Y13.58%
EPS Next 5Y13.63%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
Revenue Next Year9.34%
Revenue Next 2Y10.22%
Revenue Next 3Y9.9%
Revenue Next 5Y9.37%
EBIT growth 1Y20.93%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year41.2%
EBIT Next 3Y19.35%
EBIT Next 5Y15.55%
FCF growth 1Y46.33%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y40.37%
OCF growth 3Y29.7%
OCF growth 5Y24.76%
SALESFORCE INC / 1CRM.MI FAQ
What is the ChartMill fundamental rating of SALESFORCE INC (1CRM.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1CRM.MI.
What is the valuation status of SALESFORCE INC (1CRM.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to SALESFORCE INC (1CRM.MI). This can be considered as Fairly Valued.
How profitable is SALESFORCE INC (1CRM.MI) stock?
SALESFORCE INC (1CRM.MI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for 1CRM stock?
The Price/Earnings (PE) ratio for SALESFORCE INC (1CRM.MI) is 22.06 and the Price/Book (PB) ratio is 4.03.
Is the dividend of SALESFORCE INC sustainable?
The dividend rating of SALESFORCE INC (1CRM.MI) is 3 / 10 and the dividend payout ratio is 21.86%.