SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CRM - US79466L3024 - Common Stock
225.05 EUR
+5.2 (+2.37%)
Taking everything into account, 1CRM scores 6 out of 10 in our fundamental rating. 1CRM was compared to 125 industry peers in the Software industry. While 1CRM belongs to the best of the industry regarding profitability, 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.
1CRM had a positive operating cash flow in the past year.
Each year in the past 5 years 1CRM has been profitable.
In the past 5 years 1CRM always reported a positive cash flow from operatings.
1.2 Ratios
1CRM has a better Return On Assets (7.59%) than 64.00% of its industry peers.
1CRM has a Return On Equity (12.03%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 10.05%, 1CRM is doing good in the industry, outperforming 72.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1CRM is significantly below the industry average of 12.89%.
The 3 year average ROIC (5.83%) for 1CRM is below the current ROIC(10.05%), indicating increased profibility in the last year.
| 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 72.80% of the companies in the same industry.
1CRM's Profit Margin has improved in the last couple of years.
The Operating Margin of 1CRM (22.03%) is better than 80.00% of its industry peers.
In the last couple of years the Operating Margin of 1CRM has grown nicely.
Looking at the Gross Margin, with a value of 77.73%, 1CRM is in the better half of the industry, outperforming 62.40% of the companies in the same industry.
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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1CRM is destroying value.
Compared to 1 year ago, 1CRM has less shares outstanding
Compared to 5 years ago, 1CRM has more shares outstanding
1CRM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.29 indicates that 1CRM is not in any danger for bankruptcy at the moment.
1CRM has a better Altman-Z score (5.29) than 71.20% of its industry peers.
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 better Debt to FCF ratio (0.65) than 80.80% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that 1CRM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.14, 1CRM is doing good in the industry, outperforming 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 5.29 |
ROIC/WACC0.92
WACC10.88%
2.3 Liquidity
A Current Ratio of 0.98 indicates that 1CRM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, 1CRM is doing worse than 76.00% 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.
1CRM has a worse Quick ratio (0.98) than 74.40% of its industry peers.
| 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.
Looking at the last year, 1CRM shows a quite strong growth in Revenue. The Revenue has grown by 8.41% in the last 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)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 2Y10.22%
Revenue Next 3Y9.9%
Revenue Next 5Y9.51%
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
The Price/Earnings ratio is 22.73, which indicates a rather expensive current valuation of 1CRM.
1CRM's Price/Earnings ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 76.80% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, 1CRM is valued at the same level.
1CRM is valuated rather expensively with a Price/Forward Earnings ratio of 19.93.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CRM indicates a somewhat cheap valuation: 1CRM is cheaper than 75.20% of the companies listed in the same industry.
1CRM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 19.93 |
4.2 Price Multiples
1CRM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1CRM is valued cheaply inside the industry as 80.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.34 | ||
| EV/EBITDA | 19.91 |
4.3 Compensation for Growth
The 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.
1CRM's earnings are expected to grow with 13.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)0.82
EPS Next 2Y13.6%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, 1CRM is not a good candidate for dividend investing.
1CRM's Dividend Yield is a higher than the industry average which is at 0.62.
With a Dividend Yield of 0.64, 1CRM pays less dividend than the S&P500 average, which is at 1.92.
| 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
21.86% of the earnings are spent on dividend by 1CRM. This is a low number and sustainable payout ratio.
DP21.86%
EPS Next 2Y13.6%
EPS Next 3Y13.58%
BIT:1CRM (1/8/2026, 7:00:00 PM)
225.05
+5.2 (+2.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners84.48%
Inst Owner ChangeN/A
Ins Owners2.57%
Ins Owner ChangeN/A
Market Cap214.25B
Revenue(TTM)40.32B
Net Income(TTM)7.22B
Analysts79.66
Price Target285.17 (26.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.37
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)1.56%
PT rev (3m)-2.28%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)3.42%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 19.93 | ||
| P/S | 6.19 | ||
| P/FCF | 19.34 | ||
| P/OCF | 18.47 | ||
| P/B | 4.16 | ||
| P/tB | 61.24 | ||
| EV/EBITDA | 19.91 |
EPS(TTM)9.9
EY4.4%
EPS(NY)11.29
Fwd EY5.02%
FCF(TTM)11.63
FCFY5.17%
OCF(TTM)12.18
OCFY5.41%
SpS36.38
BVpS54.16
TBVpS3.67
PEG (NY)1.37
PEG (5Y)0.82
Graham Number109.83
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 | 5.29 |
F-Score8
WACC10.88%
ROIC/WACC0.92
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 5Y14.75%
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 5Y9.51%
EBIT growth 1Y20.93%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year41.2%
EBIT Next 3Y19.35%
EBIT Next 5Y14.79%
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 for 1CRM 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.
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%.