SALESFORCE INC (CRM) Stock Fundamental Analysis
NYSE:CRM - New York Stock Exchange, Inc. - US79466L3024 - Common Stock
Overall CRM gets a fundamental rating of 7 out of 10. We evaluated CRM against 285 industry peers in the Software industry. Both the health and profitability get an excellent rating, making CRM a very profitable company, without any liquidiy or solvency issues. CRM is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make CRM a good candidate 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.
In the past 5 years CRM has always been profitable.
In the past 5 years CRM always reported a positive cash flow from operatings.
1.2 Ratios
CRM has a Return On Assets of 6.49%. This is amongst the best in the industry. CRM outperforms 80.29% of its industry peers.
The Return On Equity of CRM (10.14%) is better than 78.85% of its industry peers.
CRM's Return On Invested Capital of 8.05% is amongst the best of the industry. CRM outperforms 82.08% 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 12.12%.
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
CRM has a better Profit Margin (15.96%) than 81.72% of its industry peers.
In the last couple of years the Profit Margin of CRM has grown nicely.
CRM has a Operating Margin of 19.75%. This is amongst the best in the industry. CRM outperforms 87.46% of its industry peers.
In the last couple of years the Operating Margin of CRM has grown nicely.
The Gross Margin of CRM (76.94%) is better than 71.68% 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.
The debt/assets ratio for CRM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.60 indicates that CRM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.60, CRM is doing good in the industry, outperforming 70.61% of the companies in the same industry.
CRM has a debt to FCF ratio of 0.71. This is a very positive value and a sign of high solvency as it would only need 0.71 years to pay back of all of its debts.
The Debt to FCF ratio of CRM (0.71) is better than 74.55% 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.
With a Debt to Equity ratio value of 0.14, CRM perfoms like the industry average, outperforming 47.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 6.6 |
ROIC/WACC0.73
WACC11.05%
2.3 Liquidity
CRM has a Current 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 Current ratio of 1.11 is on the low side compared to the rest of the industry. CRM is outperformed by 72.04% of its industry peers.
A Quick Ratio of 1.11 indicates that CRM should not have too much problems paying its short term obligations.
CRM has a Quick ratio of 1.11. This is in the lower half of the industry: CRM underperforms 70.97% 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 | 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
Based on estimates for the next years, CRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.88% 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 9.33% on average per year.
EPS Next Y23.38%
EPS Next 2Y17.33%
EPS Next 3Y16.04%
EPS Next 5Y13.88%
Revenue Next Year9.02%
Revenue Next 2Y9.02%
Revenue Next 3Y9.18%
Revenue Next 5Y9.33%
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
CRM is valuated quite expensively with a Price/Earnings ratio of 33.69.
Based on the Price/Earnings ratio, CRM is valued a bit cheaper than 70.61% of the companies in the same industry.
CRM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 28.92 indicates a quite expensive valuation of CRM.
Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than 69.53% 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 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.69 | ||
| Fwd PE | 28.92 |
4.2 Price Multiples
76.34% of the companies in the same industry are more expensive than CRM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CRM is valued a bit cheaper than the industry average as 78.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.34 | ||
| EV/EBITDA | 27.67 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as CRM's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)1.44
PEG (5Y)1.29
EPS Next 2Y17.33%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, CRM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.64, CRM pays a better dividend. On top of this CRM pays more dividend than 89.96% of the companies listed in the same industry.
With a Dividend Yield of 0.50, CRM pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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
DPN/A
EPS Next 2Y17.33%
EPS Next 3Y16.04%
SALESFORCE INC
NYSE:CRM (1/21/2025, 8:04:00 PM)
After market: 328.55 +1.71 (+0.52%)326.84
+2.28 (+0.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.35%
Inst Owner Change-0.03%
Ins Owners2.57%
Ins Owner Change-1.94%
Market Cap312.79B
Analysts79.29
Price Target409.22 (25.2%)
Short Float %1.11%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)14.11%
PT rev (3m)30.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.69 | ||
| Fwd PE | 28.92 | ||
| P/S | 8.41 | ||
| P/FCF | 26.34 | ||
| P/OCF | 24.97 | ||
| P/B | 5.34 | ||
| P/tB | 58.87 | ||
| EV/EBITDA | 27.67 |
EPS(TTM)9.7
EY2.97%
EPS(NY)11.3
Fwd EY3.46%
FCF(TTM)12.41
FCFY3.8%
OCF(TTM)13.09
OCFY4%
SpS38.86
BVpS61.15
TBVpS5.55
PEG (NY)1.44
PEG (5Y)1.29
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-Score9
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 18.32% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 31.11 | ||
| Cash Conversion | 114.95% | ||
| Profit Quality | 200.07% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 6.6 |
F-Score9
WACC11.05%
ROIC/WACC0.73
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 Y23.38%
EPS Next 2Y17.33%
EPS Next 3Y16.04%
EPS Next 5Y13.88%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y17.93%
Revenue growth 5Y21.28%
Sales Q2Q%8.3%
Revenue Next Year9.02%
Revenue Next 2Y9.02%
Revenue Next 3Y9.18%
Revenue Next 5Y9.33%
EBIT growth 1Y36.26%
EBIT growth 3Y136.24%
EBIT growth 5Y60.57%
EBIT Next Year50.09%
EBIT Next 3Y20.24%
EBIT Next 5Y12.47%
FCF growth 1Y113.64%
FCF growth 3Y32.41%
FCF growth 5Y27.64%
OCF growth 1Y98.65%
OCF growth 3Y28.7%
OCF growth 5Y24.67%