SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
BIT:1CRM - Euronext Milan - US79466L3024 - Common Stock - Currency: EUR
Overall 1CRM gets a fundamental rating of 6 out of 10. We evaluated 1CRM against 101 industry peers in the Software industry. 1CRM has an excellent profitability rating, but 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 6.29%, 1CRM is in the better half of the industry, outperforming 69.31% of the companies in the same industry.
1CRM has a better Return On Equity (10.23%) than 62.38% of its industry peers.
1CRM's Return On Invested Capital of 8.87% is fine compared to the rest of the industry. 1CRM outperforms 71.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1CRM is significantly below the industry average of 10.93%.
The last Return On Invested Capital (8.87%) for 1CRM is above the 3 year average (5.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 10.23% | ||
| ROIC | 8.87% |
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
The Profit Margin of 1CRM (16.08%) is better than 76.24% of its industry peers.
1CRM's Profit Margin has improved in the last couple of years.
The Operating Margin of 1CRM (20.50%) is better than 78.22% of its industry peers.
1CRM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 77.34%, 1CRM is doing good in the industry, outperforming 64.36% of the companies in the same industry.
1CRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.5% | ||
| PM (TTM) | 16.08% | ||
| GM | 77.34% |
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
1CRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, 1CRM has an improved debt to assets ratio.
2.2 Solvency
1CRM has an Altman-Z score of 5.09. This indicates that 1CRM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1CRM (5.09) is better than 68.32% of its industry peers.
The Debt to FCF ratio of 1CRM is 0.67, which is an excellent value as it means it would take 1CRM, only 0.67 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.67, 1CRM belongs to the top of the industry, outperforming 84.16% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that 1CRM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, 1CRM is in the better half of the industry, outperforming 73.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 5.09 |
ROIC/WACC0.83
WACC10.72%
2.3 Liquidity
A Current Ratio of 1.07 indicates that 1CRM should not have too much problems paying its short term obligations.
The Current ratio of 1CRM (1.07) is worse than 63.37% of its industry peers.
A Quick Ratio of 1.07 indicates that 1CRM should not have too much problems paying its short term obligations.
1CRM has a Quick ratio of 1.07. This is in the lower half of the industry: 1CRM underperforms 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
1CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.29%, which is quite good.
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.
The Revenue has been growing slightly by 7.97% in the past year.
1CRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.25% yearly.
EPS 1Y (TTM)15.29%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%5.74%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.62%
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 12.04% on average per year.
The Revenue is expected to grow by 9.62% on average over the next years. This is quite good.
EPS Next Y12.13%
EPS Next 2Y11.99%
EPS Next 3Y12.79%
EPS Next 5Y12.04%
Revenue Next Year8.57%
Revenue Next 2Y8.82%
Revenue Next 3Y9.26%
Revenue Next 5Y9.62%
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
With a Price/Earnings ratio of 26.58, 1CRM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1CRM is valued cheaply inside the industry as 81.19% of the companies are valued more expensively.
1CRM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
1CRM is valuated rather expensively with a Price/Forward Earnings ratio of 21.48.
1CRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 69.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. 1CRM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 21.48 |
4.2 Price Multiples
1CRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 60.40% of the companies in the same industry.
77.23% of the companies in the same industry are more expensive than 1CRM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.82 | ||
| EV/EBITDA | 21.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 12.79% in the coming years.
PEG (NY)2.19
PEG (5Y)0.96
EPS Next 2Y11.99%
EPS Next 3Y12.79%
5. Dividend
5.1 Amount
1CRM has a yearly dividend return of 0.64%, which is pretty low.
The stock price of 1CRM dropped by -31.46% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
1CRM's Dividend Yield is a higher than the industry average which is at 1.77.
Compared to an average S&P500 Dividend Yield of 2.37, 1CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1CRM pays out 25.00% of its income as dividend. This is a sustainable payout ratio.
DP25%
EPS Next 2Y11.99%
EPS Next 3Y12.79%
BIT:1CRM (7/8/2025, 7:00:00 PM)
234.4
+3 (+1.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.85%
Inst Owner ChangeN/A
Ins Owners2.52%
Ins Owner ChangeN/A
Market Cap224.90B
Analysts79.67
Price Target314.65 (34.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.35
Dividend Growth(5Y)N/A
DP25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.95%
Min EPS beat(2)0.37%
Max EPS beat(2)5.52%
EPS beat(4)3
Avg EPS beat(4)2.78%
Min EPS beat(4)-2.3%
Max EPS beat(4)7.51%
EPS beat(8)7
Avg EPS beat(8)3.13%
EPS beat(12)11
Avg EPS beat(12)6.7%
EPS beat(16)15
Avg EPS beat(16)12.06%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)-0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-0.54%
Revenue beat(12)2
Avg Revenue beat(12)-0.17%
Revenue beat(16)4
Avg Revenue beat(16)-0.11%
PT rev (1m)-5%
PT rev (3m)-9.66%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)1.67%
EPS NY rev (1m)1.49%
EPS NY rev (3m)1.39%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 21.48 | ||
| P/S | 6.82 | ||
| P/FCF | 20.82 | ||
| P/OCF | 19.77 | ||
| P/B | 4.34 | ||
| P/tB | 49.2 | ||
| EV/EBITDA | 21.83 |
EPS(TTM)8.82
EY3.76%
EPS(NY)10.91
Fwd EY4.66%
FCF(TTM)11.26
FCFY4.8%
OCF(TTM)11.86
OCFY5.06%
SpS34.35
BVpS54
TBVpS4.76
PEG (NY)2.19
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 10.23% | ||
| ROCE | 10.63% | ||
| ROIC | 8.87% | ||
| ROICexc | 11.58% | ||
| ROICexgc | 390.16% | ||
| OM | 20.5% | ||
| PM (TTM) | 16.08% | ||
| GM | 77.34% | ||
| FCFM | 32.77% |
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 19.59% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.34% | ||
| Profit Quality | 203.82% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 5.09 |
F-Score8
WACC10.72%
ROIC/WACC0.83
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)15.29%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%5.74%
EPS Next Y12.13%
EPS Next 2Y11.99%
EPS Next 3Y12.79%
EPS Next 5Y12.04%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.62%
Revenue Next Year8.57%
Revenue Next 2Y8.82%
Revenue Next 3Y9.26%
Revenue Next 5Y9.62%
EBIT growth 1Y20.01%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year35.67%
EBIT Next 3Y18.7%
EBIT Next 5Y15.41%
FCF growth 1Y79.03%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y68.07%
OCF growth 3Y29.7%
OCF growth 5Y24.76%