SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
BIT:1CRM - Borsa Italiana Milan - US79466L3024 - Common Stock - Currency: EUR
Overall 1CRM gets a fundamental rating of 6 out of 10. We evaluated 1CRM against 98 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 is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, 1CRM could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
1CRM had positive earnings in the past year.
1CRM had a positive operating cash flow in the past year.
1CRM had positive earnings in each of the past 5 years.
In the past 5 years 1CRM always reported a positive cash flow from operatings.
1.2 Ratios
1CRM has a Return On Assets of 6.49%. This is in the better half of the industry: 1CRM outperforms 64.37% of its industry peers.
1CRM's Return On Equity of 10.14% is fine compared to the rest of the industry. 1CRM outperforms 62.07% of its industry peers.
1CRM has a Return On Invested Capital (5.87%) which is comparable to the rest of the industry.
1CRM had an Average Return On Invested Capital over the past 3 years of 2.22%. This is significantly below the industry average of 11.66%.
The last Return On Invested Capital (5.87%) for 1CRM is above the 3 year average (2.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 10.14% | ||
| ROIC | 5.87% |
ROA(3y)1.96%
ROA(5y)2.45%
ROE(3y)3.26%
ROE(5y)3.99%
ROIC(3y)2.22%
ROIC(5y)1.57%
1.3 Margins
With a decent Profit Margin value of 15.96%, 1CRM is doing good in the industry, outperforming 73.56% of the companies in the same industry.
In the last couple of years the Profit Margin of 1CRM has grown nicely.
The Operating Margin of 1CRM (19.75%) is better than 75.86% of its industry peers.
1CRM's Operating Margin has improved in the last couple of years.
1CRM has a Gross Margin (76.94%) which is comparable to the rest of the industry.
1CRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.75% | ||
| PM (TTM) | 15.96% | ||
| GM | 76.94% |
OM growth 3Y100.32%
OM growth 5Y32.39%
PM growth 3Y-14.76%
PM growth 5Y7.26%
GM growth 3Y0.48%
GM growth 5Y0.4%
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.
1CRM has more shares outstanding than it did 5 years ago.
1CRM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.85 indicates that 1CRM is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1CRM (6.85) is better than 71.26% of its industry peers.
The Debt to FCF ratio of 1CRM is 0.71, which is an excellent value as it means it would take 1CRM, only 0.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1CRM (0.71) is better than 79.31% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that 1CRM is not too dependend on debt financing.
1CRM's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. 1CRM outperforms 67.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 6.85 |
ROIC/WACC0.55
WACC10.75%
2.3 Liquidity
A Current Ratio of 1.11 indicates that 1CRM should not have too much problems paying its short term obligations.
1CRM's Current ratio of 1.11 is on the low side compared to the rest of the industry. 1CRM is outperformed by 63.22% of its industry peers.
1CRM has a Quick Ratio of 1.11. This is a normal value and indicates that 1CRM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1CRM (1.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
1CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.63%, which is quite impressive.
Measured over the past years, 1CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.05% on average per year.
Looking at the last year, 1CRM shows a quite strong growth in Revenue. The Revenue has grown by 9.53% in the last year.
The Revenue has been growing by 21.28% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)27.63%
EPS 3Y18.61%
EPS 5Y26.05%
EPS Q2Q%14.22%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y17.93%
Revenue growth 5Y21.28%
Sales Q2Q%8.3%
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 13.88% yearly.
Based on estimates for the next years, 1CRM will show a quite strong growth in Revenue. The Revenue will grow by 9.33% on average per year.
EPS Next Y23.38%
EPS Next 2Y17.33%
EPS Next 3Y16.04%
EPS Next 5Y13.88%
Revenue Next Year9.02%
Revenue Next 2Y9.03%
Revenue Next 3Y9.18%
Revenue Next 5Y9.33%
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
A Price/Earnings ratio of 34.93 indicates a quite expensive valuation of 1CRM.
1CRM's Price/Earnings ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. 1CRM is valued slightly more expensive when compared to this.
1CRM is valuated quite expensively with a Price/Forward Earnings ratio of 29.99.
1CRM's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 92.74. 1CRM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.93 | ||
| Fwd PE | 29.99 |
4.2 Price Multiples
1CRM's Enterprise Value to EBITDA ratio is in line with the industry average.
1CRM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 71.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.32 | ||
| EV/EBITDA | 28.94 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as 1CRM's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)1.49
PEG (5Y)1.34
EPS Next 2Y17.33%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
1CRM has a yearly dividend return of 0.48%, which is pretty low.
1CRM's Dividend Yield is a higher than the industry average which is at 1.29.
With a Dividend Yield of 0.48, 1CRM pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y17.33%
EPS Next 3Y16.04%
SALESFORCE INC
BIT:1CRM (2/3/2025, 7:00:00 PM)
328
-6.4 (-1.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.35%
Inst Owner ChangeN/A
Ins Owners2.57%
Ins Owner ChangeN/A
Market Cap313.90B
Analysts79.29
Price Target386.06 (17.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.61%
Min EPS beat(2)-2.29%
Max EPS beat(2)7.51%
EPS beat(4)3
Avg EPS beat(4)1.77%
Min EPS beat(4)-2.29%
Max EPS beat(4)7.51%
EPS beat(8)7
Avg EPS beat(8)5.64%
EPS beat(12)11
Avg EPS beat(12)7.56%
EPS beat(16)15
Avg EPS beat(16)16.26%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)0.05%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)0.05%
Revenue beat(8)2
Avg Revenue beat(8)0.13%
Revenue beat(12)3
Avg Revenue beat(12)-0.06%
Revenue beat(16)6
Avg Revenue beat(16)0.1%
PT rev (1m)20.28%
PT rev (3m)31.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.93 | ||
| Fwd PE | 29.99 | ||
| P/S | 8.72 | ||
| P/FCF | 27.32 | ||
| P/OCF | 25.9 | ||
| P/B | 5.54 | ||
| P/tB | 61.06 | ||
| EV/EBITDA | 28.94 |
EPS(TTM)9.39
EY2.86%
EPS(NY)10.94
Fwd EY3.33%
FCF(TTM)12.01
FCFY3.66%
OCF(TTM)12.66
OCFY3.86%
SpS37.6
BVpS59.17
TBVpS5.37
PEG (NY)1.49
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 10.14% | ||
| ROCE | 10.2% | ||
| ROIC | 5.87% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 69.82% | ||
| OM | 19.75% | ||
| PM (TTM) | 15.96% | ||
| GM | 76.94% | ||
| FCFM | 31.93% |
ROA(3y)1.96%
ROA(5y)2.45%
ROE(3y)3.26%
ROE(5y)3.99%
ROIC(3y)2.22%
ROIC(5y)1.57%
ROICexc(3y)2.72%
ROICexc(5y)1.94%
ROICexgc(3y)31.98%
ROICexgc(5y)22.19%
ROCE(3y)3.85%
ROCE(5y)2.73%
ROICexcg growth 3Y151.79%
ROICexcg growth 5Y-14.84%
ROICexc growth 3Y101.5%
ROICexc growth 5Y22.33%
OM growth 3Y100.32%
OM growth 5Y32.39%
PM growth 3Y-14.76%
PM growth 5Y7.26%
GM growth 3Y0.48%
GM growth 5Y0.4%
F-Score9
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 18.32% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 31.11 | ||
| Cash Conversion | 114.95% | ||
| Profit Quality | 200.07% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 6.85 |
F-Score9
WACC10.75%
ROIC/WACC0.55
Cap/Depr(3y)20.47%
Cap/Depr(5y)23.29%
Cap/Sales(3y)2.45%
Cap/Sales(5y)2.89%
Profit Quality(3y)1210.2%
Profit Quality(5y)1331.61%
High Growth Momentum
Growth
EPS 1Y (TTM)27.63%
EPS 3Y18.61%
EPS 5Y26.05%
EPS Q2Q%14.22%
EPS Next Y23.38%
EPS Next 2Y17.33%
EPS Next 3Y16.04%
EPS Next 5Y13.88%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y17.93%
Revenue growth 5Y21.28%
Sales Q2Q%8.3%
Revenue Next Year9.02%
Revenue Next 2Y9.03%
Revenue Next 3Y9.18%
Revenue Next 5Y9.33%
EBIT growth 1Y36.26%
EBIT growth 3Y136.24%
EBIT growth 5Y60.57%
EBIT Next Year50.09%
EBIT Next 3Y20.24%
EBIT Next 5Y12.47%
FCF growth 1Y113.64%
FCF growth 3Y32.41%
FCF growth 5Y27.64%
OCF growth 1Y98.65%
OCF growth 3Y28.7%
OCF growth 5Y24.67%