SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - NYSE:CRM - US79466L3024 - Common Stock
243.9 USD
+1.14 (+0.47%)
We assign a fundamental rating of 7 out of 10 to CRM. CRM was compared to 280 industry peers in the Software industry. CRM gets an excellent profitability rating and is at the same time showing great financial health properties. CRM has a correct valuation and a medium growth rate. With these ratings, CRM could be worth investigating further for quality investing!.
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
The Return On Assets of CRM (6.83%) is better than 75.71% of its industry peers.
CRM's Return On Equity of 10.86% is fine compared to the rest of the industry. CRM outperforms 77.86% of its industry peers.
With an excellent Return On Invested Capital value of 9.32%, CRM belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CRM is significantly below the industry average of 11.85%.
The 3 year average ROIC (5.83%) for CRM is below the current ROIC(9.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 10.86% | ||
| ROIC | 9.32% |
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
With an excellent Profit Margin value of 16.87%, CRM belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
CRM's Profit Margin has improved in the last couple of years.
CRM's Operating Margin of 21.22% is amongst the best of the industry. CRM outperforms 87.14% of its industry peers.
CRM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 77.65%, CRM is doing good in the industry, outperforming 74.64% 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 | 21.22% | ||
| PM (TTM) | 16.87% | ||
| GM | 77.65% |
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.
CRM has less shares outstanding than it did 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
CRM has an Altman-Z score of 4.82. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.82, CRM is doing good in the industry, outperforming 67.86% of the companies in the same industry.
CRM has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.68, CRM is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
CRM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CRM (0.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.82 |
ROIC/WACC0.86
WACC10.87%
2.3 Liquidity
A Current Ratio of 1.12 indicates that CRM should not have too much problems paying its short term obligations.
The Current ratio of CRM (1.12) is worse than 66.79% of its industry peers.
A Quick Ratio of 1.12 indicates that CRM should not have too much problems paying its short term obligations.
The Quick ratio of CRM (1.12) is worse than 65.36% 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 | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.62% 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.
Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 8.33% in the last year.
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)13.62%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%13.67%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%9.77%
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 12.04% 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 9.62% on average per year.
EPS Next Y12.13%
EPS Next 2Y11.95%
EPS Next 3Y12.86%
EPS Next 5Y12.04%
Revenue Next Year8.7%
Revenue Next 2Y8.86%
Revenue Next 3Y9%
Revenue Next 5Y9.62%
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.
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
Based on the Price/Earnings ratio of 22.84, the valuation of CRM can be described as rather expensive.
Based on the Price/Earnings ratio, CRM is valued a bit cheaper than 73.21% of the companies in the same industry.
CRM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 19.10, the valuation of CRM can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than 77.50% of the companies in the same industry.
CRM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 19.1 |
4.2 Price Multiples
CRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRM is cheaper than 82.86% of the companies in the same industry.
83.21% 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 | 18.58 | ||
| EV/EBITDA | 18.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CRM does not grow enough to justify the current Price/Earnings ratio.
CRM has an outstanding profitability rating, which may justify a higher PE ratio.
CRM's earnings are expected to grow with 12.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)0.82
EPS Next 2Y11.95%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
CRM has a yearly dividend return of 0.68%, which is pretty low.
Compared to an average industry Dividend Yield of 40.27, CRM pays a better dividend. On top of this CRM pays more dividend than 91.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
23.50% of the earnings are spent on dividend by CRM. This is a low number and sustainable payout ratio.
DP23.5%
EPS Next 2Y11.95%
EPS Next 3Y12.86%
NYSE:CRM (9/15/2025, 9:59:06 AM)
243.9
+1.14 (+0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.98%
Inst Owner Change-1.86%
Ins Owners2.52%
Ins Owner Change0.77%
Market Cap232.19B
Analysts79.66
Price Target341.91 (40.18%)
Short Float %1.55%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.59
Dividend Growth(5Y)N/A
DP23.5%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.05%
Min EPS beat(2)0.37%
Max EPS beat(2)3.73%
EPS beat(4)3
Avg EPS beat(4)1.83%
Min EPS beat(4)-2.3%
Max EPS beat(4)5.52%
EPS beat(8)7
Avg EPS beat(8)2.26%
EPS beat(12)11
Avg EPS beat(12)5.73%
EPS beat(16)15
Avg EPS beat(16)8.56%
Revenue beat(2)0
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-0.53%
Revenue beat(12)2
Avg Revenue beat(12)-0.12%
Revenue beat(16)3
Avg Revenue beat(16)-0.15%
PT rev (1m)-5.28%
PT rev (3m)-5.32%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)0.37%
EPS NY rev (1m)0%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 19.1 | ||
| P/S | 5.88 | ||
| P/FCF | 18.58 | ||
| P/OCF | 17.63 | ||
| P/B | 3.79 | ||
| P/tB | 37.32 | ||
| EV/EBITDA | 18.68 |
EPS(TTM)10.68
EY4.38%
EPS(NY)12.77
Fwd EY5.24%
FCF(TTM)13.13
FCFY5.38%
OCF(TTM)13.83
OCFY5.67%
SpS41.49
BVpS64.42
TBVpS6.53
PEG (NY)1.88
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 10.86% | ||
| ROCE | 11.17% | ||
| ROIC | 9.32% | ||
| ROICexc | 11.72% | ||
| ROICexgc | 153.28% | ||
| OM | 21.22% | ||
| PM (TTM) | 16.87% | ||
| GM | 77.65% | ||
| FCFM | 31.64% |
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%
ROICexcg growth 3Y144.43%
ROICexcg 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-Score9
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 20.05% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 36.44 | ||
| Cash Conversion | 112.25% | ||
| Profit Quality | 187.56% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 4.82 |
F-Score9
WACC10.87%
ROIC/WACC0.86
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)13.62%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%13.67%
EPS Next Y12.13%
EPS Next 2Y11.95%
EPS Next 3Y12.86%
EPS Next 5Y12.04%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%9.77%
Revenue Next Year8.7%
Revenue Next 2Y8.86%
Revenue Next 3Y9%
Revenue Next 5Y9.62%
EBIT growth 1Y20.59%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year36.84%
EBIT Next 3Y18.7%
EBIT Next 5Y15.41%
FCF growth 1Y65.28%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y56.77%
OCF growth 3Y29.7%
OCF growth 5Y24.76%