SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRM - US79466L3024 - Common Stock
228.15 USD
-5.97 (-2.55%)
228.25 USD
+0.1 (+0.04%)
We assign a fundamental rating of 7 out of 10 to CRM. CRM was compared to 280 industry peers in the Software industry. CRM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CRM has a decent growth rate and is not valued too expensively. These ratings could make CRM a good candidate for 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.
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 better Return On Assets (6.83%) than 76.07% of its industry peers.
CRM's Return On Equity of 10.86% is fine compared to the rest of the industry. CRM outperforms 76.07% of its industry peers.
CRM's Return On Invested Capital of 9.32% is amongst the best of the industry. CRM outperforms 83.21% of its industry peers.
CRM had an Average Return On Invested Capital over the past 3 years of 5.83%. This is significantly below the industry average of 11.98%.
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 80.71% of the companies in the same industry.
In the last couple of years the Profit Margin of CRM has grown nicely.
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.
The Gross Margin of CRM (77.65%) is better than 73.93% of its industry peers.
In the last couple of years the Gross Margin of CRM has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRM is destroying value.
Compared to 1 year ago, CRM has less shares outstanding
Compared to 5 years ago, CRM has more shares outstanding
Compared to 1 year ago, CRM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.59 indicates that CRM is not in any danger for bankruptcy at the moment.
The Altman-Z score of CRM (4.59) is better than 70.00% 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.
The Debt to FCF ratio of CRM (0.68) is better than 78.57% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that CRM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, CRM is in line with its industry, outperforming 50.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.59 |
ROIC/WACC0.86
WACC10.85%
2.3 Liquidity
CRM has a Current Ratio of 1.12. 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 1.12 is on the low side compared to the rest of the industry. CRM is outperformed by 68.93% 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's Quick ratio of 1.12 is on the low side compared to the rest of the industry. CRM is outperformed by 67.50% 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
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.
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)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 13.47% on average per year.
CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.33% yearly.
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
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
A Price/Earnings ratio of 21.36 indicates a rather expensive valuation of CRM.
Based on the Price/Earnings ratio, CRM is valued a bit cheaper than the industry average as 71.07% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.15. CRM is around the same levels.
With a Price/Forward Earnings ratio of 17.75, CRM is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 75.36% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. CRM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 17.75 |
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 81.43% of the companies listed in the same industry.
81.07% 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 | 17.38 | ||
| EV/EBITDA | 17.5 |
4.3 Compensation for Growth
CRM's 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.
CRM's earnings are expected to grow with 12.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.68
PEG (5Y)0.77
EPS Next 2Y12.31%
EPS Next 3Y12.83%
5. Dividend
5.1 Amount
CRM has a yearly dividend return of 0.71%, which is pretty low.
Compared to an average industry Dividend Yield of 51.62, CRM pays a better dividend. On top of this CRM pays more dividend than 89.64% of the companies listed in the same industry.
With a Dividend Yield of 0.71, CRM pays less dividend than the S&P500 average, which is at 2.41.
| 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
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%
228.15
-5.97 (-2.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.17%
Inst Owner Change-0.87%
Ins Owners2.53%
Ins Owner Change0.48%
Market Cap217.20B
Revenue(TTM)39.50B
Net Income(TTM)6.66B
Analysts79.32
Price Target336.05 (47.29%)
Short Float %1.82%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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)-5.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 17.75 | ||
| P/S | 5.5 | ||
| P/FCF | 17.38 | ||
| P/OCF | 16.49 | ||
| P/B | 3.54 | ||
| P/tB | 34.91 | ||
| EV/EBITDA | 17.5 |
EPS(TTM)10.68
EY4.68%
EPS(NY)12.85
Fwd EY5.63%
FCF(TTM)13.13
FCFY5.75%
OCF(TTM)13.83
OCFY6.06%
SpS41.49
BVpS64.42
TBVpS6.53
PEG (NY)1.68
PEG (5Y)0.77
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 | 4.59 |
F-Score9
WACC10.85%
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%.