SALESFORCE INC (FOO.DE) Stock Fundamental Analysis
FRA:FOO - Deutsche Boerse Ag - US79466L3024 - Common Stock - Currency: EUR
FOO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 99 industry peers in the Software industry. While FOO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FOO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FOO had positive earnings in the past year.
In the past year FOO had a positive cash flow from operations.
In the past 5 years FOO has always been profitable.
FOO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.29%, FOO is in the better half of the industry, outperforming 68.69% of the companies in the same industry.
With a decent Return On Equity value of 10.23%, FOO is doing good in the industry, outperforming 62.63% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.87%, FOO is doing good in the industry, outperforming 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FOO is below the industry average of 10.83%.
The last Return On Invested Capital (8.87%) for FOO is above the 3 year average (5.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 10.23% | ||
| ROIC | 8.87% |
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
Looking at the Profit Margin, with a value of 16.08%, FOO is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
FOO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.50%, FOO is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
FOO's Operating Margin has improved in the last couple of years.
The Gross Margin of FOO (77.34%) is better than 65.66% of its industry peers.
In the last couple of years the Gross Margin of FOO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.5% | ||
| PM (TTM) | 16.08% | ||
| GM | 77.34% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FOO is destroying value.
FOO has less shares outstanding than it did 1 year ago.
FOO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FOO has been reduced compared to a year ago.
2.2 Solvency
FOO has an Altman-Z score of 4.86. This indicates that FOO is financially healthy and has little risk of bankruptcy at the moment.
FOO has a Altman-Z score of 4.86. This is in the better half of the industry: FOO outperforms 64.65% of its industry peers.
FOO has a debt to FCF ratio of 0.67. This is a very positive value and a sign of high solvency as it would only need 0.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.67, FOO belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
FOO 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 FOO (0.14) is better than 73.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 4.86 |
ROIC/WACC0.84
WACC10.61%
2.3 Liquidity
FOO has a Current Ratio of 1.07. This is a normal value and indicates that FOO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.07, FOO is doing worse than 60.61% of the companies in the same industry.
FOO has a Quick Ratio of 1.07. This is a normal value and indicates that FOO is financially healthy and should not expect problems in meeting its short term obligations.
FOO has a Quick ratio (1.07) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.29% over the past year.
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 been growing slightly by 7.97% in the past year.
FOO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.25% yearly.
EPS 1Y (TTM)15.29%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%5.74%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.62%
3.2 Future
The Earnings Per Share is expected to grow by 12.04% on average over the next years. This is quite good.
Based on estimates for the next years, FOO will show a quite strong growth in Revenue. The Revenue will grow by 9.62% on average per year.
EPS Next Y12.13%
EPS Next 2Y11.96%
EPS Next 3Y12.58%
EPS Next 5Y12.04%
Revenue Next Year8.57%
Revenue Next 2Y8.83%
Revenue Next 3Y9.25%
Revenue Next 5Y9.62%
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 25.24 indicates a quite expensive valuation of FOO.
FOO's Price/Earnings ratio is rather cheap when compared to the industry. FOO is cheaper than 83.84% of the companies in the same industry.
When comparing the Price/Earnings ratio of FOO to the average of the S&P500 Index (27.19), we can say FOO is valued inline with the index average.
FOO is valuated rather expensively with a Price/Forward Earnings ratio of 20.42.
FOO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FOO is cheaper than 76.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FOO to the average of the S&P500 Index (35.33), we can say FOO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 20.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOO is valued a bit cheaper than the industry average as 62.63% of the companies are valued more expensively.
80.81% of the companies in the same industry are more expensive than FOO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.72 | ||
| EV/EBITDA | 20.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FOO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FOO's earnings are expected to grow with 12.58% in the coming years.
PEG (NY)2.08
PEG (5Y)0.91
EPS Next 2Y11.96%
EPS Next 3Y12.58%
5. Dividend
5.1 Amount
FOO has a yearly dividend return of 0.64%, which is pretty low.
FOO's Dividend Yield is a higher than the industry average which is at 2.06.
With a Dividend Yield of 0.64, FOO pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
25.00% of the earnings are spent on dividend by FOO. This is a low number and sustainable payout ratio.
DP25%
EPS Next 2Y11.96%
EPS Next 3Y12.58%
FRA:FOO (7/15/2025, 5:23:22 PM)
223.15
+0.25 (+0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.85%
Inst Owner ChangeN/A
Ins Owners2.52%
Ins Owner ChangeN/A
Market Cap213.33B
Analysts79.67
Price Target314.31 (40.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend1.36
Dividend Growth(5Y)N/A
DP25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.95%
Min EPS beat(2)0.37%
Max EPS beat(2)5.52%
EPS beat(4)3
Avg EPS beat(4)2.78%
Min EPS beat(4)-2.3%
Max EPS beat(4)7.51%
EPS beat(8)7
Avg EPS beat(8)3.13%
EPS beat(12)11
Avg EPS beat(12)6.7%
EPS beat(16)15
Avg EPS beat(16)12.06%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)-0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-0.54%
Revenue beat(12)2
Avg Revenue beat(12)-0.17%
Revenue beat(16)4
Avg Revenue beat(16)-0.11%
PT rev (1m)-0.83%
PT rev (3m)-9.92%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)1.69%
EPS NY rev (1m)1.49%
EPS NY rev (3m)1.39%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 20.42 | ||
| P/S | 6.46 | ||
| P/FCF | 19.72 | ||
| P/OCF | 18.72 | ||
| P/B | 4.11 | ||
| P/tB | 46.6 | ||
| EV/EBITDA | 20.58 |
EPS(TTM)8.84
EY3.96%
EPS(NY)10.93
Fwd EY4.9%
FCF(TTM)11.32
FCFY5.07%
OCF(TTM)11.92
OCFY5.34%
SpS34.53
BVpS54.28
TBVpS4.79
PEG (NY)2.08
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 10.23% | ||
| ROCE | 10.63% | ||
| ROIC | 8.87% | ||
| ROICexc | 11.58% | ||
| ROICexgc | 390.16% | ||
| OM | 20.5% | ||
| PM (TTM) | 16.08% | ||
| GM | 77.34% | ||
| FCFM | 32.77% |
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%
ROICexcg growth 3Y144.43%
ROICexcg 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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 19.59% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.34% | ||
| Profit Quality | 203.82% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 4.86 |
F-Score8
WACC10.61%
ROIC/WACC0.84
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)15.29%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%5.74%
EPS Next Y12.13%
EPS Next 2Y11.96%
EPS Next 3Y12.58%
EPS Next 5Y12.04%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.62%
Revenue Next Year8.57%
Revenue Next 2Y8.83%
Revenue Next 3Y9.25%
Revenue Next 5Y9.62%
EBIT growth 1Y20.01%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year35.67%
EBIT Next 3Y18.7%
EBIT Next 5Y15.41%
FCF growth 1Y79.03%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y68.07%
OCF growth 3Y29.7%
OCF growth 5Y24.76%