SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - NYSE:CRM - US79466L3024 - Common Stock
239.88 USD
+0.61 (+0.25%)
240.16 USD
+0.28 (+0.12%)
We assign a fundamental rating of 7 out of 10 to CRM. CRM was compared to 281 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 would make CRM suitable 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.
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
With a decent Return On Assets value of 6.83%, CRM is doing good in the industry, outperforming 76.49% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.86%, CRM is in the better half of the industry, outperforming 78.60% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.32%, CRM belongs to the top of the industry, outperforming 83.16% 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 11.85%.
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
CRM has a Profit Margin of 16.87%. This is amongst the best in the industry. CRM outperforms 80.70% of its industry peers.
In the last couple of years the Profit Margin of CRM has grown nicely.
CRM has a better Operating Margin (21.22%) than 87.02% of its industry peers.
In the last couple of years the Operating Margin of CRM has grown nicely.
CRM has a Gross Margin of 77.65%. This is in the better half of the industry: CRM outperforms 75.09% 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.
The number of shares outstanding for CRM has been reduced compared to 1 year ago.
Compared to 5 years ago, CRM has more shares outstanding
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.
The Altman-Z score of CRM (4.78) is better than 70.18% of its industry peers.
The Debt to FCF ratio of CRM is 0.68, which is an excellent value as it means it would take CRM, only 0.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CRM (0.68) is better than 77.89% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that CRM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.14, CRM perfoms like the industry average, outperforming 51.93% 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
WACC10.83%
2.3 Liquidity
A Current Ratio of 1.12 indicates that CRM should not have too much problems paying its short term obligations.
CRM has a worse Current ratio (1.12) than 67.02% 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 Quick ratio of 1.12. This is in the lower half of the industry: CRM underperforms 65.61% 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.
CRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.71% yearly.
CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.33%.
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
CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.47% yearly.
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.
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
A Price/Earnings ratio of 22.46 indicates a rather expensive valuation of CRM.
Based on the Price/Earnings ratio, CRM is valued a bit cheaper than the industry average as 70.88% of the companies are valued more expensively.
CRM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
CRM is valuated rather expensively with a Price/Forward Earnings ratio of 18.66.
76.14% of the companies in the same industry are more expensive than CRM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CRM to the average of the S&P500 Index (32.73), we can say CRM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.46 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
CRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRM is cheaper than 81.40% of the companies in the same industry.
CRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRM is cheaper than 81.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.27 | ||
| EV/EBITDA | 18.45 |
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)1.76
PEG (5Y)0.81
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 41.09, CRM pays a better dividend. On top of this CRM pays more dividend than 89.82% of the companies listed in the same industry.
With a Dividend Yield of 0.70, CRM pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 2Y12.31%
EPS Next 3Y12.83%
239.88
+0.61 (+0.25%)
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 Cap228.37B
Revenue(TTM)39.50B
Net Income(TTM)6.66B
Analysts79.32
Price Target336.05 (40.09%)
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 | 22.46 | ||
| Fwd PE | 18.66 | ||
| P/S | 5.78 | ||
| P/FCF | 18.27 | ||
| P/OCF | 17.34 | ||
| P/B | 3.72 | ||
| P/tB | 36.71 | ||
| EV/EBITDA | 18.45 |
EPS(TTM)10.68
EY4.45%
EPS(NY)12.85
Fwd EY5.36%
FCF(TTM)13.13
FCFY5.47%
OCF(TTM)13.83
OCFY5.77%
SpS41.49
BVpS64.42
TBVpS6.53
PEG (NY)1.76
PEG (5Y)0.81
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
WACC10.83%
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%.