SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
Europe - BIT:1CRM - US79466L3024 - Common Stock
223.95 EUR
+1.05 (+0.47%)
Overall 1CRM gets a fundamental rating of 6 out of 10. We evaluated 1CRM against 103 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
1CRM had positive earnings in the past year.
In the past year 1CRM had a positive cash flow from operations.
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
With a decent Return On Assets value of 6.83%, 1CRM is doing good in the industry, outperforming 62.14% of the companies in the same industry.
1CRM has a Return On Equity (10.86%) which is in line with its industry peers.
1CRM has a better Return On Invested Capital (9.32%) than 69.90% 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 12.76%.
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 71.84% of its industry peers.
1CRM's Profit Margin has improved in the last couple of years.
The Operating Margin of 1CRM (21.22%) is better than 77.67% 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 77.65%, 1CRM is in the better half of the industry, outperforming 63.11% 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 | 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
1CRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1CRM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1CRM has been increased compared to 5 years ago.
1CRM has a better debt/assets ratio than last year.
2.2 Solvency
1CRM has an Altman-Z score of 5.05. This indicates that 1CRM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.05, 1CRM is in the better half of the industry, outperforming 68.93% of the companies in the same industry.
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.
The Debt to FCF ratio of 1CRM (0.68) is better than 84.47% 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 69.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 5.05 |
ROIC/WACC0.86
WACC10.87%
2.3 Liquidity
1CRM has a Current 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 Current ratio value of 1.12, 1CRM is not doing good in the industry: 62.14% of the companies in the same industry are doing better.
A Quick Ratio of 1.12 indicates that 1CRM should not have too much problems paying its short term obligations.
1CRM has a Quick ratio of 1.12. This is in the lower half of the industry: 1CRM underperforms 60.19% of its industry peers.
| 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.
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.
1CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.33%.
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)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 12.19% on average per year.
1CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.26% yearly.
EPS Next Y12.74%
EPS Next 2Y12.31%
EPS Next 3Y12.72%
EPS Next 5Y12.19%
Revenue Next Year8.71%
Revenue Next 2Y8.85%
Revenue Next 3Y8.96%
Revenue Next 5Y9.26%
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.
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 24.11 indicates a rather expensive 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 78.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.13, 1CRM is valued at the same level.
The Price/Forward Earnings ratio is 20.02, which indicates a rather expensive current valuation of 1CRM.
Based on the Price/Forward Earnings ratio, 1CRM is valued a bit cheaper than the industry average as 68.93% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.35. 1CRM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 20.02 |
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 a bit cheaper than 76.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.61 | ||
| EV/EBITDA | 19.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1CRM may justify a higher PE ratio.
1CRM's earnings are expected to grow with 12.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.89
PEG (5Y)0.87
EPS Next 2Y12.31%
EPS Next 3Y12.72%
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 2.15, 1CRM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, 1CRM's dividend is way lower than the S&P500 average.
| 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
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 3Y12.72%
BIT:1CRM (11/3/2025, 7:00:00 PM)
223.95
+1.05 (+0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.17%
Inst Owner ChangeN/A
Ins Owners2.53%
Ins Owner ChangeN/A
Market Cap213.20B
Revenue(TTM)39.50B
Net Income(TTM)6.66B
Analysts79.66
Price Target292.22 (30.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.38
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)0.66%
PT rev (3m)-6.23%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 20.02 | ||
| P/S | 6.2 | ||
| P/FCF | 19.61 | ||
| P/OCF | 18.6 | ||
| P/B | 4 | ||
| P/tB | 39.38 | ||
| EV/EBITDA | 19.87 |
EPS(TTM)9.29
EY4.15%
EPS(NY)11.18
Fwd EY4.99%
FCF(TTM)11.42
FCFY5.1%
OCF(TTM)12.04
OCFY5.37%
SpS36.11
BVpS56.06
TBVpS5.69
PEG (NY)1.89
PEG (5Y)0.87
Graham Number108.25
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 | 5.05 |
F-Score9
WACC10.87%
ROIC/WACC0.86
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 3Y12.72%
EPS Next 5Y12.19%
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 3Y8.96%
Revenue Next 5Y9.26%
EBIT growth 1Y20.59%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year38.23%
EBIT Next 3Y16.08%
EBIT Next 5Y14.45%
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 24.11 and the Price/Book (PB) ratio is 4.
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%.