SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - NYSE:CRM - US79466L3024 - Common Stock
243.66 USD
+3.23 (+1.34%)
243.95 USD
+0.29 (+0.12%)
CRM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 281 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 has a correct valuation and a medium growth rate. This makes CRM very considerable for quality investing!
1. Profitability
1.1 Basic Checks
CRM had positive earnings in the past year.
In the past year CRM had a positive cash flow from operations.
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 has a Return On Assets of 6.83%. This is in the better half of the industry: CRM outperforms 76.87% of its industry peers.
CRM's Return On Equity of 10.86% is fine compared to the rest of the industry. CRM outperforms 79.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.32%, CRM belongs to the top of the industry, outperforming 83.27% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CRM is significantly below the industry average of 11.92%.
The last Return On Invested Capital (9.32%) for CRM is above the 3 year average (5.83%), which is a sign of increasing profitability.
| 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 80.78% of the companies in the same industry.
In the last couple of years the Profit Margin of CRM has grown nicely.
Looking at the Operating Margin, with a value of 21.22%, CRM belongs to the top of the industry, outperforming 86.83% of the companies in the same industry.
CRM's Operating Margin has improved in the last couple of years.
CRM has a better Gross Margin (77.65%) 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 | 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.
The debt/assets ratio for CRM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.78 indicates that CRM is not in any danger for bankruptcy at the moment.
CRM has a Altman-Z score of 4.78. This is in the better half of the industry: CRM outperforms 71.53% of its industry peers.
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.
CRM has a Debt to FCF ratio of 0.68. This is in the better half of the industry: CRM outperforms 78.65% 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 51.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.78 |
ROIC/WACC0.86
WACC10.81%
2.3 Liquidity
A Current Ratio of 1.12 indicates that CRM should not have too much problems paying its short term obligations.
CRM's Current ratio of 1.12 is on the low side compared to the rest of the industry. CRM is outperformed by 67.62% of its industry peers.
A Quick Ratio of 1.12 indicates that CRM should not have too much problems paying its short term obligations.
CRM has a worse Quick ratio (1.12) than 66.19% 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 | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.62%, which is quite good.
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 8.33% in the last year.
The Revenue has been growing by 17.25% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 13.47% 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 9.33% on average per year.
EPS Next Y12.74%
EPS Next 2Y12.31%
EPS Next 3Y12.83%
EPS Next 5Y13.48%
Revenue Next Year8.71%
Revenue Next 2Y8.85%
Revenue Next 3Y9.15%
Revenue Next 5Y9.33%
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
With a Price/Earnings ratio of 22.81, CRM is valued on the expensive side.
Based on the Price/Earnings ratio, CRM is valued a bit cheaper than 71.17% of the companies in the same industry.
CRM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.96, the valuation of CRM can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than 74.38% of the companies in the same industry.
CRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 18.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRM indicates a rather cheap valuation: CRM is cheaper than 81.49% of the companies listed in the same industry.
CRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRM is cheaper than 80.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.56 | ||
| EV/EBITDA | 18.49 |
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 12.83% in the coming years.
PEG (NY)1.79
PEG (5Y)0.82
EPS Next 2Y12.31%
EPS Next 3Y12.83%
5. Dividend
5.1 Amount
CRM has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 41.08, CRM pays a better dividend. On top of this CRM pays more dividend than 89.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 23.50% of its income as dividend. This is a sustainable payout ratio.
DP23.5%
EPS Next 2Y12.31%
EPS Next 3Y12.83%
243.66
+3.23 (+1.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.17%
Inst Owner Change-1.1%
Ins Owners2.53%
Ins Owner Change0.51%
Market Cap231.96B
Revenue(TTM)39.50B
Net Income(TTM)6.66B
Analysts79.32
Price Target336.05 (37.92%)
Short Float %1.7%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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)-1.78%
PT rev (3m)-6.9%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 18.96 | ||
| P/S | 5.87 | ||
| P/FCF | 18.56 | ||
| P/OCF | 17.61 | ||
| P/B | 3.78 | ||
| P/tB | 37.29 | ||
| EV/EBITDA | 18.49 |
EPS(TTM)10.68
EY4.38%
EPS(NY)12.85
Fwd EY5.27%
FCF(TTM)13.13
FCFY5.39%
OCF(TTM)13.83
OCFY5.68%
SpS41.49
BVpS64.42
TBVpS6.53
PEG (NY)1.79
PEG (5Y)0.82
Graham Number124.42
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%
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-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 | 4.78 |
F-Score9
WACC10.81%
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 Y12.74%
EPS Next 2Y12.31%
EPS Next 3Y12.83%
EPS Next 5Y13.48%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%9.77%
Revenue Next Year8.71%
Revenue Next 2Y8.85%
Revenue Next 3Y9.15%
Revenue Next 5Y9.33%
EBIT growth 1Y20.59%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year38.23%
EBIT Next 3Y16.28%
EBIT Next 5Y15.55%
FCF growth 1Y65.28%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y56.77%
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 7 / 10 to CRM.
What is the valuation status of SALESFORCE INC (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 expected EPS growth for SALESFORCE INC (CRM) stock?
The Earnings per Share (EPS) of SALESFORCE INC (CRM) is expected to grow by 12.74% in the next year.
Is the dividend of SALESFORCE INC sustainable?
The dividend rating of SALESFORCE INC (CRM) is 3 / 10 and the dividend payout ratio is 23.5%.