SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CRM - US79466L3024 - Common Stock
210.3 EUR
+7.55 (+3.72%)
We assign a fundamental rating of 6 out of 10 to 1CRM. 1CRM was compared to 116 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.
Each year in the past 5 years 1CRM has been profitable.
Each year in the past 5 years 1CRM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.83%, 1CRM is in the better half of the industry, outperforming 62.93% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.86%, 1CRM is in line with its industry, outperforming 58.62% of the companies in the same industry.
1CRM's Return On Invested Capital of 9.32% is fine compared to the rest of the industry. 1CRM outperforms 70.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1CRM is significantly below the industry average of 13.28%.
The last Return On Invested Capital (9.32%) for 1CRM is above the 3 year average (5.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 10.86% | ||
| ROIC | 9.32% |
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 Profit Margin of 16.87%. This is in the better half of the industry: 1CRM outperforms 69.83% of its industry peers.
In the last couple of years the Profit Margin of 1CRM has grown nicely.
1CRM has a Operating Margin of 21.22%. This is in the better half of the industry: 1CRM outperforms 75.86% of its industry peers.
In the last couple of years the Operating Margin of 1CRM has grown nicely.
1CRM has a better Gross Margin (77.65%) than 62.93% of its industry peers.
In the last couple of years the Gross Margin of 1CRM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.22% | ||
| PM (TTM) | 16.87% | ||
| GM | 77.65% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1CRM is destroying value.
1CRM has less shares outstanding than it did 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
1CRM has an Altman-Z score of 4.86. This indicates that 1CRM is financially healthy and has little risk of bankruptcy at the moment.
1CRM has a better Altman-Z score (4.86) than 68.97% 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.
Looking at the Debt to FCF ratio, with a value of 0.68, 1CRM belongs to the top of the industry, outperforming 84.48% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that 1CRM is not too dependend on debt financing.
The Debt to Equity ratio of 1CRM (0.14) is better than 69.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.86 |
ROIC/WACC0.87
WACC10.75%
2.3 Liquidity
A Current Ratio of 1.12 indicates that 1CRM should not have too much problems paying its short term obligations.
1CRM's Current ratio of 1.12 is on the low side compared to the rest of the industry. 1CRM is outperformed by 62.07% of its industry peers.
1CRM has a Quick Ratio of 1.12. This is a normal value and indicates that 1CRM is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.12, 1CRM perfoms like the industry average, outperforming 40.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
1CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.62%, which is quite good.
The Earnings Per Share has been growing by 27.71% on average over the past years. This is a very strong growth
Looking at the last year, 1CRM shows a quite strong growth in Revenue. The Revenue has grown by 8.33% in the last year.
The Revenue has been growing by 17.25% on average over the past years. This is quite good.
EPS 1Y (TTM)13.62%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%13.67%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%9.77%
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 13.63% on average per year.
1CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.37% yearly.
EPS Next Y12.74%
EPS Next 2Y12.31%
EPS Next 3Y12.89%
EPS Next 5Y13.63%
Revenue Next Year8.71%
Revenue Next 2Y8.85%
Revenue Next 3Y9.18%
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
A Price/Earnings ratio of 22.98 indicates a rather expensive valuation of 1CRM.
Based on the Price/Earnings ratio, 1CRM is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1CRM to the average of the S&P500 Index (26.46), we can say 1CRM is valued inline with the index average.
The Price/Forward Earnings ratio is 19.09, which indicates a rather expensive current valuation of 1CRM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CRM indicates a somewhat cheap valuation: 1CRM is cheaper than 72.41% of the companies listed in the same industry.
1CRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 19.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1CRM indicates a somewhat cheap valuation: 1CRM is cheaper than 62.07% of the companies listed in the same industry.
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 | 18.69 | ||
| EV/EBITDA | 18.89 |
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.
The decent profitability rating of 1CRM may justify a higher PE ratio.
1CRM's earnings are expected to grow with 12.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.8
PEG (5Y)0.83
EPS Next 2Y12.31%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, 1CRM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.15, 1CRM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, 1CRM's dividend is way lower than the S&P500 average.
| 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
23.50% of the earnings are spent on dividend by 1CRM. This is a low number and sustainable payout ratio.
DP23.5%
EPS Next 2Y12.31%
EPS Next 3Y12.89%
BIT:1CRM (12/4/2025, 7:00:00 PM)
210.3
+7.55 (+3.72%)
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 Cap200.21B
Revenue(TTM)39.50B
Net Income(TTM)6.66B
Analysts79.31
Price Target280.8 (33.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend1.37
Dividend Growth(5Y)N/A
DP23.5%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.05%
Min EPS beat(2)0.37%
Max EPS beat(2)3.73%
EPS beat(4)3
Avg EPS beat(4)1.83%
Min EPS beat(4)-2.3%
Max EPS beat(4)5.52%
EPS beat(8)7
Avg EPS beat(8)2.26%
EPS beat(12)11
Avg EPS beat(12)5.73%
EPS beat(16)15
Avg EPS beat(16)8.56%
Revenue beat(2)0
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-0.53%
Revenue beat(12)2
Avg Revenue beat(12)-0.12%
Revenue beat(16)3
Avg Revenue beat(16)-0.15%
PT rev (1m)-1.11%
PT rev (3m)-5.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 19.09 | ||
| P/S | 5.91 | ||
| P/FCF | 18.69 | ||
| P/OCF | 17.74 | ||
| P/B | 3.81 | ||
| P/tB | 37.54 | ||
| EV/EBITDA | 18.89 |
EPS(TTM)9.15
EY4.35%
EPS(NY)11.02
Fwd EY5.24%
FCF(TTM)11.25
FCFY5.35%
OCF(TTM)11.86
OCFY5.64%
SpS35.57
BVpS55.22
TBVpS5.6
PEG (NY)1.8
PEG (5Y)0.83
Graham Number106.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 10.86% | ||
| ROCE | 11.17% | ||
| ROIC | 9.32% | ||
| ROICexc | 11.72% | ||
| ROICexgc | 153.28% | ||
| OM | 21.22% | ||
| PM (TTM) | 16.87% | ||
| GM | 77.65% | ||
| FCFM | 31.64% |
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-Score9
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 20.05% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 36.44 | ||
| Cash Conversion | 112.25% | ||
| Profit Quality | 187.56% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 4.86 |
F-Score9
WACC10.75%
ROIC/WACC0.87
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)13.62%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%13.67%
EPS Next Y12.74%
EPS Next 2Y12.31%
EPS Next 3Y12.89%
EPS Next 5Y13.63%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%9.77%
Revenue Next Year8.71%
Revenue Next 2Y8.85%
Revenue Next 3Y9.18%
Revenue Next 5Y9.37%
EBIT growth 1Y20.59%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year38.23%
EBIT Next 3Y16.28%
EBIT Next 5Y15.55%
FCF growth 1Y65.28%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y56.77%
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 22.98 and the Price/Book (PB) ratio is 3.81.
Is the dividend of SALESFORCE INC sustainable?
The dividend rating of SALESFORCE INC (1CRM.MI) is 3 / 10 and the dividend payout ratio is 23.5%.