SALESFORCE INC (CRM)
US79466L3024 - Common Stock
Overall CRM gets a fundamental rating of 7 out of 10. We evaluated CRM against 278 industry peers in the Software industry. CRM gets an excellent profitability rating and is at the same time showing great financial health properties. CRM is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, CRM could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
CRM had positive earnings in the past year.
CRM had a positive operating cash flow in the past year.
CRM had positive earnings in each of the past 5 years.
In the past 5 years CRM always reported a positive cash flow from operatings.
1.2 Ratios
CRM's Return On Assets of 6.49% is amongst the best of the industry. CRM outperforms 80.58% of its industry peers.
The Return On Equity of CRM (10.14%) is better than 78.78% of its industry peers.
The Return On Invested Capital of CRM (8.05%) is better than 82.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CRM is significantly below the industry average of 12.23%.
The last Return On Invested Capital (8.05%) for CRM is above the 3 year average (3.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 10.14% | ||
| ROIC | 8.05% |
ROA(3y)1.96%
ROA(5y)2.45%
ROE(3y)3.26%
ROE(5y)3.99%
ROIC(3y)3.04%
ROIC(5y)2.16%
1.3 Margins
Looking at the Profit Margin, with a value of 15.96%, CRM belongs to the top of the industry, outperforming 82.37% of the companies in the same industry.
CRM's Profit Margin has improved in the last couple of years.
CRM's Operating Margin of 19.75% is amongst the best of the industry. CRM outperforms 87.41% of its industry peers.
In the last couple of years the Operating Margin of CRM has grown nicely.
CRM has a better Gross Margin (76.94%) than 72.30% of its industry peers.
CRM'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
CRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CRM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CRM has been increased compared to 5 years ago.
Compared to 1 year ago, CRM has an improved debt to assets ratio.
2.2 Solvency
CRM has an Altman-Z score of 6.80. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
CRM's Altman-Z score of 6.80 is fine compared to the rest of the industry. CRM outperforms 71.58% of its industry peers.
The Debt to FCF ratio of CRM is 0.96, which is an excellent value as it means it would take CRM, only 0.96 years of fcf income to pay off all of its debts.
CRM has a Debt to FCF ratio of 0.96. This is in the better half of the industry: CRM outperforms 75.18% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that CRM is not too dependend on debt financing.
CRM has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 6.8 |
ROIC/WACC0.69
WACC11.65%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CRM should not have too much problems paying its short term obligations.
CRM's Current ratio of 1.11 is on the low side compared to the rest of the industry. CRM is outperformed by 72.30% of its industry peers.
CRM has a Quick Ratio of 1.11. This is a normal value and indicates that CRM is financially healthy and should not expect problems in meeting its short term obligations.
CRM's Quick ratio of 1.11 is on the low side compared to the rest of the industry. CRM is outperformed by 70.86% of its industry peers.
CRM does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.63%, which is quite impressive.
CRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.05% yearly.
The Revenue has grown by 9.53% in the past year. This is quite good.
Measured over the past years, CRM shows a very strong growth in Revenue. The Revenue has been growing by 21.28% on average per year.
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
The Earnings Per Share is expected to grow by 14.63% on average over the next years. This is quite good.
CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.16% yearly.
EPS Next Y24.32%
EPS Next 2Y17.06%
EPS Next 3Y16%
EPS Next 5Y14.63%
Revenue Next Year8.81%
Revenue Next 2Y8.89%
Revenue Next 3Y9.12%
Revenue Next 5Y10.16%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.43, the valuation of CRM can be described as expensive.
Based on the Price/Earnings ratio, CRM is valued a bit cheaper than the industry average as 70.50% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CRM to the average of the S&P500 Index (27.73), we can say CRM is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 30.55, the valuation of CRM can be described as expensive.
Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than the industry average as 67.63% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CRM to the average of the S&P500 Index (22.83), we can say CRM is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.43 | ||
| Fwd PE | 30.55 |
4.2 Price Multiples
CRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CRM is cheaper than 75.54% of the companies in the same industry.
78.06% of the companies in the same industry are more expensive than CRM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.7 | ||
| EV/EBITDA | 28.92 |
4.3 Compensation for Growth
CRM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CRM may justify a higher PE ratio.
CRM's earnings are expected to grow with 16.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)1.36
EPS Next 2Y17.06%
EPS Next 3Y16%
5. Dividend
5.1 Amount
CRM has a yearly dividend return of 0.45%, which is pretty low.
Compared to an average industry Dividend Yield of 13.45, CRM pays a better dividend. On top of this CRM pays more dividend than 90.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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
DPN/A
EPS Next 2Y17.06%
EPS Next 3Y16%
SALESFORCE INC
NYSE:CRM (12/20/2024, 8:04:00 PM)
After market: 346.44 +2.79 (+0.81%)343.65
+7.42 (+2.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.21%
Inst Owner Change-1.37%
Ins Owners1.62%
Ins Owner Change0.11%
Market Cap328.87B
Analysts80
Price Target358.63 (4.36%)
Short Float %1.26%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)12.24%
PT rev (3m)18.48%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-0.75%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.43 | ||
| Fwd PE | 30.55 | ||
| P/S | 8.84 | ||
| P/FCF | 27.7 | ||
| P/OCF | 26.26 | ||
| P/B | 5.62 | ||
| P/tB | 61.9 | ||
| EV/EBITDA | 28.92 |
EPS(TTM)9.7
EY2.82%
EPS(NY)11.25
Fwd EY3.27%
FCF(TTM)12.41
FCFY3.61%
OCF(TTM)13.09
OCFY3.81%
SpS38.86
BVpS61.15
TBVpS5.55
PEG (NY)1.46
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 10.14% | ||
| ROCE | 10.2% | ||
| ROIC | 8.05% | ||
| ROICexc | 9.79% | ||
| ROICexgc | 95.87% | ||
| 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)3.04%
ROIC(5y)2.16%
ROICexc(3y)3.74%
ROICexc(5y)2.67%
ROICexgc(3y)43.92%
ROICexgc(5y)30.47%
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-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 18.32% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 35.3 | ||
| Cash Conversion | 114.95% | ||
| Profit Quality | 200.07% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 6.8 |
F-Score8
WACC11.65%
ROIC/WACC0.69
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 Y24.32%
EPS Next 2Y17.06%
EPS Next 3Y16%
EPS Next 5Y14.63%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y17.93%
Revenue growth 5Y21.28%
Sales Q2Q%8.3%
Revenue Next Year8.81%
Revenue Next 2Y8.89%
Revenue Next 3Y9.12%
Revenue Next 5Y10.16%
EBIT growth 1Y36.26%
EBIT growth 3Y136.24%
EBIT growth 5Y60.57%
EBIT Next Year50.69%
EBIT Next 3Y20.82%
EBIT Next 5Y14.85%
FCF growth 1Y113.64%
FCF growth 3Y32.41%
FCF growth 5Y27.64%
OCF growth 1Y98.65%
OCF growth 3Y28.7%
OCF growth 5Y24.67%