SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CRM - US79466L3024 - Common Stock
192.12 EUR
+2.62 (+1.38%)
Taking everything into account, 1CRM scores 6 out of 10 in our fundamental rating. 1CRM was compared to 119 industry peers in the Software industry. 1CRM scores excellent on profitability, but there are some minor concerns on its financial health. 1CRM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1CRM was profitable.
- 1CRM had a positive operating cash flow in the past year.
- 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
- With a decent Return On Assets value of 7.59%, 1CRM is doing good in the industry, outperforming 63.03% of the companies in the same industry.
- With a Return On Equity value of 12.03%, 1CRM perfoms like the industry average, outperforming 56.30% of the companies in the same industry.
- The Return On Invested Capital of 1CRM (10.05%) is better than 70.59% 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 13.47%.
- 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
- 1CRM's Profit Margin of 17.91% is fine compared to the rest of the industry. 1CRM outperforms 71.43% of its industry peers.
- In the last couple of years the Profit Margin of 1CRM has grown nicely.
- 1CRM has a Operating Margin of 22.03%. This is in the better half of the industry: 1CRM outperforms 78.99% of its industry peers.
- 1CRM's Operating Margin has improved in the last couple of years.
- 1CRM's Gross Margin of 77.73% is fine compared to the rest of the industry. 1CRM outperforms 63.87% 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.
- The number of shares outstanding for 1CRM has been reduced compared to 1 year ago.
- Compared to 5 years ago, 1CRM has more shares outstanding
- The debt/assets ratio for 1CRM has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.69 indicates that 1CRM is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.69, 1CRM is doing good in the industry, outperforming 66.39% of the companies in the same industry.
- 1CRM has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
- 1CRM has a Debt to FCF ratio of 0.65. This is amongst the best in the industry. 1CRM outperforms 82.35% 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.
- The Debt to Equity ratio of 1CRM (0.14) is better than 66.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 4.69 |
ROIC/WACC0.92
WACC10.94%
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.
- Looking at the Current ratio, with a value of 0.98, 1CRM is doing worse than 73.95% of the companies in the same industry.
- A Quick Ratio of 0.98 indicates that 1CRM may have some problems paying its short term obligations.
- With a Quick ratio value of 0.98, 1CRM is not doing good in the industry: 72.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- 1CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.76%, which is quite good.
- 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%.
- The Revenue has been growing by 17.25% on average over the past years. This is quite good.
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
- 1CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.75% yearly.
- 1CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.51% yearly.
EPS Next Y16.58%
EPS Next 2Y13.6%
EPS Next 3Y13.58%
EPS Next 5Y14.75%
Revenue Next Year9.34%
Revenue Next 2Y10.21%
Revenue Next 3Y9.87%
Revenue Next 5Y9.51%
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
- 1CRM is valuated rather expensively with a Price/Earnings ratio of 19.52.
- Based on the Price/Earnings ratio, 1CRM is valued cheaper than 80.67% of the companies in the same industry.
- 1CRM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 17.10 indicates a rather expensive valuation of 1CRM.
- Based on the Price/Forward Earnings ratio, 1CRM is valued a bit cheaper than 79.83% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, 1CRM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 17.1 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1CRM is valued a bit cheaper than 62.18% of the companies in the same industry.
- 1CRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1CRM is cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.6 | ||
| EV/EBITDA | 17.03 |
4.3 Compensation for Growth
- 1CRM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1CRM has a very decent profitability rating, which may justify a higher PE ratio.
- 1CRM's earnings are expected to grow with 13.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)0.7
EPS Next 2Y13.6%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.71%, 1CRM is not a good candidate for dividend investing.
- 1CRM's Dividend Yield is a higher than the industry average which is at 0.63.
- With a Dividend Yield of 0.71, 1CRM pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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%
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 for 1CRM stock?
ChartMill assigns a valuation rating of 6 / 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.
What is the expected EPS growth for SALESFORCE INC (1CRM.MI) stock?
The Earnings per Share (EPS) of SALESFORCE INC (1CRM.MI) is expected to grow by 16.58% in the next year.
How sustainable is the dividend of SALESFORCE INC (1CRM.MI) stock?
The dividend rating of SALESFORCE INC (1CRM.MI) is 3 / 10 and the dividend payout ratio is 21.86%.