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 115 industry peers in the Software industry. While 1CRM has a great profitability rating, there are some minor concerns on its financial health. 1CRM is not valued too expensively and it also shows a decent 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.
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 65.22% of its industry peers.
1CRM has a Return On Equity of 12.03%. This is comparable to the rest of the industry: 1CRM outperforms 59.13% of its industry peers.
The Return On Invested Capital of 1CRM (10.05%) is better than 72.17% 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 12.89%.
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 73.91% of its industry peers.
1CRM's Profit Margin has improved in the last couple of years.
1CRM has a Operating Margin of 22.03%. This is in the better half of the industry: 1CRM outperforms 80.00% of its industry peers.
1CRM's Operating Margin has improved in the last couple of years.
The Gross Margin of 1CRM (77.73%) is better than 63.48% 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 | 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.
The number of shares outstanding for 1CRM has been increased compared to 5 years ago.
Compared to 1 year ago, 1CRM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.15 indicates that 1CRM is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1CRM (5.15) is better than 69.57% 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's Debt to FCF ratio of 0.65 is amongst the best of the industry. 1CRM outperforms 84.35% 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 68.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 5.15 |
ROIC/WACC0.92
WACC10.87%
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.
With a Current ratio value of 0.98, 1CRM is not doing good in the industry: 72.17% of the companies in the same industry are doing better.
A Quick Ratio of 0.98 indicates that 1CRM may have some problems paying its short term obligations.
1CRM has a Quick ratio of 0.98. This is in the lower half of the industry: 1CRM underperforms 71.30% 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.
The Earnings Per Share has been growing by 27.71% on average over the past years. This is a very strong growth
The Revenue has grown by 8.41% in the past year. This is quite good.
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
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 Y12.73%
EPS Next 2Y12.3%
EPS Next 3Y12.79%
EPS Next 5Y13.63%
Revenue Next Year8.71%
Revenue Next 2Y8.86%
Revenue Next 3Y8.97%
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.
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 21.97, which indicates a rather expensive current valuation of 1CRM.
Compared to the rest of the industry, the Price/Earnings ratio of 1CRM indicates a somewhat cheap valuation: 1CRM is cheaper than 75.65% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1CRM to the average of the S&P500 Index (26.61), we can say 1CRM is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.70, 1CRM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, 1CRM is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, 1CRM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 19.7 |
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 60.87% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1CRM is valued a bit cheaper than the industry average as 79.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.69 | ||
| EV/EBITDA | 19.22 |
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.
1CRM's earnings are expected to grow with 12.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.73
PEG (5Y)0.79
EPS Next 2Y12.3%
EPS Next 3Y12.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, 1CRM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.66, 1CRM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.65, 1CRM pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 2Y12.3%
EPS Next 3Y12.79%
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 Target280.8 (30.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.36
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)-2.44%
PT rev (3m)-3.27%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)2.47%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 19.7 | ||
| P/S | 5.98 | ||
| P/FCF | 18.69 | ||
| P/OCF | 17.85 | ||
| P/B | 4.02 | ||
| P/tB | 59.17 | ||
| EV/EBITDA | 19.22 |
EPS(TTM)9.81
EY4.55%
EPS(NY)10.94
Fwd EY5.08%
FCF(TTM)11.53
FCFY5.35%
OCF(TTM)12.08
OCFY5.6%
SpS36.06
BVpS53.68
TBVpS3.64
PEG (NY)1.73
PEG (5Y)0.79
Graham Number108.85
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 | 5.15 |
F-Score8
WACC10.87%
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 Y12.73%
EPS Next 2Y12.3%
EPS Next 3Y12.79%
EPS Next 5Y13.63%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
Revenue Next Year8.71%
Revenue Next 2Y8.86%
Revenue Next 3Y8.97%
Revenue Next 5Y9.37%
EBIT growth 1Y20.93%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year37.4%
EBIT Next 3Y18.63%
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 21.97 and the Price/Book (PB) ratio is 4.02.
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%.