SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRM - US79466L3024 - Common Stock
219.925 USD
-0.14 (-0.07%)
Overall CRM gets a fundamental rating of 6 out of 10. We evaluated CRM against 277 industry peers in the Software industry. While CRM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CRM is not valued too expensively and it also shows a decent growth rate.
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.
- CRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CRM's Return On Assets of 7.59% is fine compared to the rest of the industry. CRM outperforms 77.98% of its industry peers.
- CRM has a Return On Equity of 12.03%. This is in the better half of the industry: CRM outperforms 75.81% of its industry peers.
- The Return On Invested Capital of CRM (10.05%) is better than 84.84% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- The Profit Margin of CRM (17.91%) is better than 80.51% of its industry peers.
- CRM's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 22.03%, CRM belongs to the best of the industry, outperforming 88.45% of the companies in the same industry.
- In the last couple of years the Operating Margin of CRM has grown nicely.
- CRM has a better Gross Margin (77.73%) than 74.73% of its industry peers.
- 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.
- Compared to 5 years ago, CRM has more shares outstanding
- The debt/assets ratio for CRM has been reduced compared to a year ago.
2.2 Solvency
- CRM has an Altman-Z score of 4.61. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
- CRM's Altman-Z score of 4.61 is fine compared to the rest of the industry. CRM outperforms 70.76% of its industry peers.
- The Debt to FCF ratio of CRM is 0.65, which is an excellent value as it means it would take CRM, only 0.65 years of fcf income to pay off all of its debts.
- CRM's Debt to FCF ratio of 0.65 is fine compared to the rest of the industry. CRM outperforms 77.62% 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 has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: CRM outperforms 49.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 4.61 |
ROIC/WACC0.92
WACC10.96%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that CRM may have some problems paying its short term obligations.
- CRM has a worse Current ratio (0.98) than 75.81% of its industry peers.
- 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.
- With a Quick ratio value of 0.98, CRM is not doing good in the industry: 74.73% of the companies in the same industry are doing better.
- 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 | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.76% over the past year.
- 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
- The Earnings Per Share is expected to grow by 14.75% on average over the next years. This is quite good.
- Based on estimates for the next years, CRM will show a quite strong growth in Revenue. The Revenue will grow by 9.51% on average per year.
EPS Next Y16.58%
EPS Next 2Y13.6%
EPS Next 3Y13.58%
EPS Next 5Y14.75%
Revenue Next Year9.34%
Revenue Next 2Y10.21%
Revenue Next 3Y9.87%
Revenue Next 5Y9.51%
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.
- 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
- CRM is valuated rather expensively with a Price/Earnings ratio of 19.09.
- Based on the Price/Earnings ratio, CRM is valued a bit cheaper than 75.45% of the companies in the same industry.
- CRM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.94.
- A Price/Forward Earnings ratio of 16.73 indicates a correct valuation of CRM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 77.62% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, CRM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
- CRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRM is cheaper than 81.59% of the companies in the same industry.
- CRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRM is cheaper than 81.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.24 | ||
| EV/EBITDA | 16.65 |
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 13.58% in the coming years.
PEG (NY)1.15
PEG (5Y)0.69
EPS Next 2Y13.6%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.71%, 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 89.89% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
- CRM does not have a reliable dividend history as it only pays dividend since a couple or years.
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 2Y13.6%
EPS Next 3Y13.58%
NYSE:CRM (1/21/2026, 9:45:08 AM)
219.925
-0.14 (-0.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03 2025-12-03/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners84.48%
Inst Owner Change-0.1%
Ins Owners2.57%
Ins Owner Change0.18%
Market Cap209.37B
Revenue(TTM)40.32B
Net Income(TTM)7.22B
Analysts79.66
Price Target329.76 (49.94%)
Short Float %1.81%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend1.59
Dividend Growth(5Y)N/A
DP21.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-0.2%
PT rev (3m)-3.61%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)0.2%
EPS NY rev (1m)3.42%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)2.49%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 16.73 | ||
| P/S | 5.19 | ||
| P/FCF | 16.24 | ||
| P/OCF | 15.51 | ||
| P/B | 3.49 | ||
| P/tB | 51.4 | ||
| EV/EBITDA | 16.65 |
EPS(TTM)11.52
EY5.24%
EPS(NY)13.15
Fwd EY5.98%
FCF(TTM)13.55
FCFY6.16%
OCF(TTM)14.18
OCFY6.45%
SpS42.35
BVpS63.05
TBVpS4.28
PEG (NY)1.15
PEG (5Y)0.69
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 | 4.61 |
F-Score8
WACC10.96%
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 Y16.58%
EPS Next 2Y13.6%
EPS Next 3Y13.58%
EPS Next 5Y14.75%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
Revenue Next Year9.34%
Revenue Next 2Y10.21%
Revenue Next 3Y9.87%
Revenue Next 5Y9.51%
EBIT growth 1Y20.93%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year41.2%
EBIT Next 3Y19.35%
EBIT Next 5Y14.79%
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 for CRM stock?
ChartMill assigns a valuation rating of 6 / 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 valuation of SALESFORCE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SALESFORCE INC (CRM) is 19.09 and the Price/Book (PB) ratio is 3.49.
How financially healthy is SALESFORCE INC?
The financial health rating of SALESFORCE INC (CRM) is 6 / 10.