SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRM - US79466L3024 - Common Stock
241.06 USD
-18.34 (-7.07%)
241.3 USD
+0.24 (+0.1%)
We assign a fundamental rating of 6 out of 10 to CRM. CRM was compared to 276 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
- 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.
- CRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CRM has a better Return On Assets (7.59%) than 77.90% of its industry peers.
- CRM's Return On Equity of 12.03% is fine compared to the rest of the industry. CRM outperforms 75.72% of its industry peers.
- With an excellent Return On Invested Capital value of 10.05%, CRM belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
- 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 80.43% of its industry peers.
- CRM's Profit Margin has improved in the last couple of years.
- CRM has a Operating Margin of 22.03%. This is amongst the best in the industry. CRM outperforms 88.41% 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 75.00% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRM is destroying value.
- The number of shares outstanding for CRM has been reduced compared to 1 year ago.
- The number of shares outstanding for CRM has been increased compared to 5 years ago.
- CRM has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.95 indicates that CRM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of CRM (4.95) is better than 72.10% 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.
- Looking at the Debt to FCF ratio, with a value of 0.65, CRM is in the better half of the industry, outperforming 77.54% of the companies in the same industry.
- A Debt/Equity ratio of 0.14 indicates that CRM is not too dependend on debt financing.
- CRM has a Debt to Equity ratio (0.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 4.95 |
ROIC/WACC0.92
WACC10.9%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that CRM may have some problems paying its short term obligations.
- CRM's Current ratio of 0.98 is on the low side compared to the rest of the industry. CRM is outperformed by 75.72% 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.
- CRM has a Quick ratio of 0.98. This is in the lower half of the industry: CRM underperforms 74.64% 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 | 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.
- The Earnings Per Share has been growing by 27.71% on average over the past years. This is a very strong growth
- Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 8.41% in the last year.
- Measured over the past years, CRM shows a quite strong growth in Revenue. The Revenue has been growing by 17.25% on average per year.
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 14.75% 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 9.51% 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 2Y10.22%
Revenue Next 3Y9.9%
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 20.93.
- Compared to the rest of the industry, the Price/Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 74.28% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, CRM is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 18.33, CRM is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than 76.09% of the companies in the same industry.
- CRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 18.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CRM is valued cheaper than 80.07% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRM indicates a rather cheap valuation: CRM is cheaper than 80.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.8 | ||
| EV/EBITDA | 18.28 |
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 13.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)0.76
EPS Next 2Y13.6%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
- CRM has a yearly dividend return of 0.64%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.52, CRM pays a better dividend. On top of this CRM pays more dividend than 89.49% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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
- CRM pays out 21.86% of its income as dividend. This is a sustainable payout ratio.
DP21.86%
EPS Next 2Y13.6%
EPS Next 3Y13.58%
241.06
-18.34 (-7.07%)
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-0.06%
Ins Owners2.57%
Ins Owner Change-0.09%
Market Cap229.49B
Revenue(TTM)40.32B
Net Income(TTM)7.22B
Analysts79.66
Price Target332.22 (37.82%)
Short Float %1.73%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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)0.55%
PT rev (3m)-2.89%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)3.42%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.93 | ||
| Fwd PE | 18.33 | ||
| P/S | 5.69 | ||
| P/FCF | 17.8 | ||
| P/OCF | 17 | ||
| P/B | 3.82 | ||
| P/tB | 56.34 | ||
| EV/EBITDA | 18.28 |
EPS(TTM)11.52
EY4.78%
EPS(NY)13.15
Fwd EY5.45%
FCF(TTM)13.55
FCFY5.62%
OCF(TTM)14.18
OCFY5.88%
SpS42.35
BVpS63.05
TBVpS4.28
PEG (NY)1.26
PEG (5Y)0.76
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 | 4.95 |
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 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 2Y10.22%
Revenue Next 3Y9.9%
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 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 valuation of SALESFORCE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SALESFORCE INC (CRM) is 20.93 and the Price/Book (PB) ratio is 3.82.
How financially healthy is SALESFORCE INC?
The financial health rating of SALESFORCE INC (CRM) is 6 / 10.