SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRM - US79466L3024 - Common Stock
260.06 USD
+0.53 (+0.2%)
Taking everything into account, CRM scores 6 out of 10 in our fundamental rating. CRM was compared to 280 industry peers in the Software industry. CRM has an excellent profitability rating, but there are some minor concerns on its financial health. CRM has a decent growth rate and is not valued too expensively.
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.
In the past 5 years CRM always reported a positive cash flow from operatings.
1.2 Ratios
CRM has a better Return On Assets (7.59%) than 78.21% of its industry peers.
CRM has a Return On Equity of 12.03%. This is in the better half of the industry: CRM outperforms 76.43% of its industry peers.
CRM has a Return On Invested Capital of 10.03%. This is amongst the best in the industry. CRM outperforms 84.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CRM is significantly below the industry average of 10.97%.
The last Return On Invested Capital (10.03%) for CRM is above the 3 year average (5.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 12.03% | ||
| ROIC | 10.03% |
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's Profit Margin of 17.91% is amongst the best of the industry. CRM outperforms 81.79% of its industry peers.
In the last couple of years the Profit Margin of CRM has grown nicely.
Looking at the Operating Margin, with a value of 21.99%, CRM belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
In the last couple of years the Operating Margin of CRM has grown nicely.
CRM has a Gross Margin of 77.73%. This is in the better half of the industry: CRM outperforms 75.00% of its industry peers.
CRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.99% | ||
| PM (TTM) | 17.91% | ||
| GM | 77.73% |
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
CRM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CRM has an improved debt to assets ratio.
2.2 Solvency
CRM has an Altman-Z score of 5.25. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
CRM's Altman-Z score of 5.25 is fine compared to the rest of the industry. CRM outperforms 71.79% of its industry peers.
The Debt to FCF ratio of CRM is 0.65, which is an excellent value as it means it would take CRM, only 0.65 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.65, CRM is doing good in the industry, outperforming 78.21% 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 | 0.65 | ||
| Altman-Z | 5.25 |
ROIC/WACC0.93
WACC10.79%
2.3 Liquidity
A Current Ratio of 0.98 indicates that CRM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, CRM is doing worse than 75.00% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that CRM may have some problems paying its short term obligations.
CRM's Quick ratio of 0.98 is on the low side compared to the rest of the industry. CRM is outperformed by 73.93% 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 | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.76%, 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
The Revenue has grown by 8.41% in the past year. This is quite good.
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)18.76%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%34.85%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
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 13.63% on average per year.
The Revenue is expected to grow by 9.37% on average over the next years. This is quite good.
EPS Next Y12.73%
EPS Next 2Y12.3%
EPS Next 3Y12.79%
EPS Next 5Y13.63%
Revenue Next Year8.71%
Revenue Next 2Y8.86%
Revenue Next 3Y8.97%
Revenue Next 5Y9.37%
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
CRM is valuated rather expensively with a Price/Earnings ratio of 22.57.
Compared to the rest of the industry, the Price/Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 72.14% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. CRM is around the same levels.
CRM is valuated rather expensively with a Price/Forward Earnings ratio of 20.24.
73.93% of the companies in the same industry are more expensive than CRM, based on the Price/Forward Earnings ratio.
CRM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.57 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
CRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CRM is cheaper than 78.93% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRM indicates a rather cheap valuation: CRM is cheaper than 80.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.2 | ||
| EV/EBITDA | 19.74 |
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.
CRM's earnings are expected to grow with 12.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.77
PEG (5Y)0.81
EPS Next 2Y12.3%
EPS Next 3Y12.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, CRM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 60.83, 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 0.64, CRM pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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
CRM pays out 21.86% of its income as dividend. This is a sustainable payout ratio.
DP21.86%
EPS Next 2Y12.3%
EPS Next 3Y12.79%
NYSE:CRM (12/9/2025, 10:05:09 AM)
260.06
+0.53 (+0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.15%
Inst Owner Change-0.93%
Ins Owners2.53%
Ins Owner Change0.52%
Market Cap247.58B
Revenue(TTM)40.32B
Net Income(TTM)7.22B
Analysts79.31
Price Target330.41 (27.05%)
Short Float %1.91%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.59
Dividend Growth(5Y)N/A
DP21.86%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.16%
Min EPS beat(2)3.73%
Max EPS beat(2)12.58%
EPS beat(4)4
Avg EPS beat(4)5.55%
Min EPS beat(4)0.37%
Max EPS beat(4)12.58%
EPS beat(8)7
Avg EPS beat(8)3.66%
EPS beat(12)11
Avg EPS beat(12)5.61%
EPS beat(16)15
Avg EPS beat(16)7.06%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.55%
Revenue beat(12)2
Avg Revenue beat(12)-0.14%
Revenue beat(16)3
Avg Revenue beat(16)-0.22%
PT rev (1m)-1.68%
PT rev (3m)-6.41%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)2.11%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.57 | ||
| Fwd PE | 20.24 | ||
| P/S | 6.14 | ||
| P/FCF | 19.2 | ||
| P/OCF | 18.34 | ||
| P/B | 4.12 | ||
| P/tB | 60.78 | ||
| EV/EBITDA | 19.74 |
EPS(TTM)11.52
EY4.43%
EPS(NY)12.85
Fwd EY4.94%
FCF(TTM)13.55
FCFY5.21%
OCF(TTM)14.18
OCFY5.45%
SpS42.35
BVpS63.05
TBVpS4.28
PEG (NY)1.77
PEG (5Y)0.81
Graham Number127.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 12.03% | ||
| ROCE | 12.02% | ||
| ROIC | 10.03% | ||
| ROICexc | 11.85% | ||
| ROICexgc | 114.46% | ||
| OM | 21.99% | ||
| PM (TTM) | 17.91% | ||
| GM | 77.73% | ||
| FCFM | 31.98% |
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-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 17.92% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.18% | ||
| Profit Quality | 178.55% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 5.25 |
F-Score8
WACC10.79%
ROIC/WACC0.93
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)18.76%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%34.85%
EPS Next Y12.73%
EPS Next 2Y12.3%
EPS Next 3Y12.79%
EPS Next 5Y13.63%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
Revenue Next Year8.71%
Revenue Next 2Y8.86%
Revenue Next 3Y8.97%
Revenue Next 5Y9.37%
EBIT growth 1Y20.74%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year37.4%
EBIT Next 3Y18.63%
EBIT Next 5Y15.55%
FCF growth 1Y46.33%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y40.37%
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 6 / 10 to CRM.
What is the valuation status of SALESFORCE INC (CRM) stock?
ChartMill assigns a valuation rating of 5 / 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 12.73% 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 21.86%.