SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1CRM • US79466L3024
192.8 EUR
+0.68 (+0.35%)
Last: Jan 26, 2026, 07:00 PM
1CRM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 114 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 correct valuation and a medium growth rate.
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.
- 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 62.28% of its industry peers.
- Looking at the Return On Equity, with a value of 12.03%, 1CRM is in line with its industry, outperforming 55.26% of the companies in the same industry.
- 1CRM has a better Return On Invested Capital (10.05%) than 69.30% 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 13.49%.
- 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
- 1CRM has a Profit Margin of 17.91%. This is in the better half of the industry: 1CRM outperforms 70.18% of its industry peers.
- 1CRM's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 22.03%, 1CRM is in the better half of the industry, outperforming 77.19% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1CRM has grown nicely.
- With a decent Gross Margin value of 77.73%, 1CRM is doing good in the industry, outperforming 63.16% 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
- 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.
- 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
- An Altman-Z score of 4.78 indicates that 1CRM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1CRM (4.78) is better than 70.18% of its industry peers.
- The Debt to FCF ratio of 1CRM is 0.65, which is an excellent value as it means it would take 1CRM, only 0.65 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.65, 1CRM belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- 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 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 4.78 |
ROIC/WACC0.92
WACC10.95%
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.
- The Current ratio of 1CRM (0.98) is worse than 73.68% of its industry peers.
- A Quick Ratio of 0.98 indicates that 1CRM may have some problems paying its short term obligations.
- With a Quick ratio value of 0.98, 1CRM is not doing good in the industry: 71.93% of the companies in the same industry are doing better.
| 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.
- The Revenue has grown by 8.41% in the past year. This is quite good.
- 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.
- The Revenue is expected to grow by 9.51% on average over the next years. This is quite good.
EPS Next Y16.58%
EPS Next 2Y14%
EPS Next 3Y13.91%
EPS Next 5Y14.75%
Revenue Next Year9.34%
Revenue Next 2Y10.17%
Revenue Next 3Y9.88%
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.
- 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 20.02 indicates a rather expensive valuation of 1CRM.
- 1CRM's Price/Earnings ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 79.82% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 1CRM to the average of the S&P500 Index (28.39), we can say 1CRM is valued slightly cheaper.
- The Price/Forward Earnings ratio is 17.42, 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 76.32% of the companies are valued more expensively.
- 1CRM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 17.42 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1CRM is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, 1CRM is valued cheaply inside the industry as 80.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.04 | ||
| EV/EBITDA | 17.48 |
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.
- A more expensive valuation may be justified as 1CRM's earnings are expected to grow with 13.91% in the coming years.
PEG (NY)1.21
PEG (5Y)0.72
EPS Next 2Y14%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.73%, 1CRM is not a good candidate for dividend investing.
- 1CRM's Dividend Yield is a higher than the industry average which is at 0.68.
- With a Dividend Yield of 0.73, 1CRM pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1CRM pays out 21.86% of its income as dividend. This is a sustainable payout ratio.
DP21.86%
EPS Next 2Y14%
EPS Next 3Y13.91%
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 6 / 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%.