SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRM - US79466L3024 - Common Stock
263.89 USD
-0.74 (-0.28%)
CRM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. CRM scores excellent on profitability, but there are some minor concerns on its financial health. CRM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CRM was profitable.
In the past year CRM had a positive cash flow from operations.
Each year in the past 5 years CRM has been profitable.
Each year in the past 5 years CRM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.59%, CRM is doing good in the industry, outperforming 78.42% of the companies in the same industry.
With a decent Return On Equity value of 12.03%, CRM is doing good in the industry, outperforming 76.26% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.05%, CRM belongs to the top of the industry, outperforming 84.53% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CRM is below the industry average of 10.78%.
The last Return On Invested Capital (10.05%) for CRM 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
CRM has a Profit Margin of 17.91%. This is amongst the best in the industry. CRM outperforms 81.65% of its industry peers.
CRM's Profit Margin has improved in the last couple of years.
CRM has a better Operating Margin (22.03%) than 88.49% of its industry peers.
In the last couple of years the Operating Margin of CRM has grown nicely.
With a decent Gross Margin value of 77.73%, CRM is doing good in the industry, outperforming 74.82% of the companies in the same industry.
CRM's Gross Margin has been stable in the last couple of years.
| 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
CRM 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 CRM has been reduced compared to 1 year ago.
CRM has more shares outstanding than it did 5 years ago.
CRM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.34 indicates that CRM is not in any danger for bankruptcy at the moment.
CRM's Altman-Z score of 5.34 is fine compared to the rest of the industry. CRM outperforms 71.58% of its industry peers.
CRM 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.
CRM has a Debt to FCF ratio of 0.65. This is in the better half of the industry: CRM outperforms 77.34% of its industry peers.
CRM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
CRM's Debt to Equity ratio of 0.14 is in line compared to the rest of the industry. CRM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 5.34 |
ROIC/WACC0.92
WACC10.9%
2.3 Liquidity
CRM has a Current Ratio of 0.98. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.98, CRM is not doing good in the industry: 75.18% of the companies in the same industry are doing better.
CRM has a Quick Ratio of 0.98. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
CRM has a Quick ratio of 0.98. This is in the lower half of the industry: CRM underperforms 74.10% of its industry peers.
The current and quick ratio evaluation for CRM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.76%, which is quite good.
Measured over the past years, CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.71% on average per year.
CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.41%.
CRM 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
Based on estimates for the next years, CRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.63% on average per year.
Based on estimates for the next years, CRM 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
A Price/Earnings ratio of 22.91 indicates a rather expensive valuation of CRM.
CRM's Price/Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 70.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of CRM to the average of the S&P500 Index (26.61), we can say CRM is valued inline with the index average.
The Price/Forward Earnings ratio is 20.53, which indicates a rather expensive current valuation of CRM.
72.66% of the companies in the same industry are more expensive than CRM, based on the Price/Forward Earnings ratio.
CRM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 20.53 |
4.2 Price Multiples
78.78% of the companies in the same industry are more expensive than CRM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 79.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.48 | ||
| EV/EBITDA | 20.11 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CRM has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CRM's earnings are expected to grow with 12.79% in the coming years.
PEG (NY)1.8
PEG (5Y)0.83
EPS Next 2Y12.3%
EPS Next 3Y12.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, CRM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.52, CRM pays a better dividend. On top of this CRM pays more dividend than 89.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
CRM is new to the dividend game and has less than 3 years of track record.
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 CRM. This is a low number and sustainable payout ratio.
DP21.86%
EPS Next 2Y12.3%
EPS Next 3Y12.79%
NYSE:CRM (12/23/2025, 9:50:09 AM)
263.89
-0.74 (-0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.15%
Inst Owner Change-0.93%
Ins Owners2.53%
Ins Owner Change0.53%
Market Cap251.22B
Revenue(TTM)40.32B
Net Income(TTM)7.22B
Analysts79.31
Price Target330.41 (25.21%)
Short Float %1.78%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.59
Dividend Growth(5Y)N/A
DP21.86%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-1.68%
PT rev (3m)-3.36%
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 | 22.91 | ||
| Fwd PE | 20.53 | ||
| P/S | 6.23 | ||
| P/FCF | 19.48 | ||
| P/OCF | 18.61 | ||
| P/B | 4.19 | ||
| P/tB | 61.68 | ||
| EV/EBITDA | 20.11 |
EPS(TTM)11.52
EY4.37%
EPS(NY)12.85
Fwd EY4.87%
FCF(TTM)13.55
FCFY5.13%
OCF(TTM)14.18
OCFY5.37%
SpS42.35
BVpS63.05
TBVpS4.28
PEG (NY)1.8
PEG (5Y)0.83
Graham Number127.84
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 | 5.34 |
F-Score8
WACC10.9%
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 / CRM FAQ
What is the ChartMill fundamental rating of SALESFORCE INC (CRM) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CRM.
What is the valuation status of SALESFORCE INC (CRM) stock?
ChartMill assigns a valuation rating of 5 / 10 to SALESFORCE INC (CRM). This can be considered as Fairly Valued.
Can you provide the profitability details for SALESFORCE INC?
SALESFORCE INC (CRM) has a profitability rating of 8 / 10.
What is the expected EPS growth for SALESFORCE INC (CRM) stock?
The Earnings per Share (EPS) of SALESFORCE INC (CRM) is expected to grow by 12.73% in the next year.
Is the dividend of SALESFORCE INC sustainable?
The dividend rating of SALESFORCE INC (CRM) is 3 / 10 and the dividend payout ratio is 21.86%.