SALESFORCE INC (FOO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:FOO - US79466L3024 - Common Stock
192.42 EUR
+1.42 (+0.74%)
FOO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 114 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 has a decent growth rate and is not valued too expensively.
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
- The Return On Assets of FOO (7.59%) is better than 63.16% of its industry peers.
- FOO has a Return On Equity of 12.03%. This is comparable to the rest of the industry: FOO outperforms 56.14% of its industry peers.
- With a decent Return On Invested Capital value of 10.05%, FOO is doing good in the industry, outperforming 70.18% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for FOO is significantly below the industry average of 13.49%.
- The 3 year average ROIC (5.83%) for FOO is below the current ROIC(10.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 12.03% | ||
| ROIC | 10.05% |
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
- FOO has a better Profit Margin (17.91%) than 71.05% of its industry peers.
- In the last couple of years the Profit Margin of FOO has grown nicely.
- FOO has a Operating Margin of 22.03%. This is in the better half of the industry: FOO outperforms 78.07% of its industry peers.
- FOO's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 77.73%, FOO is in the better half of the industry, outperforming 64.04% of the companies in the same industry.
- FOO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.03% | ||
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FOO is destroying value.
- Compared to 1 year ago, FOO has less shares outstanding
- 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 4.74. This indicates that FOO is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.74, FOO is doing good in the industry, outperforming 67.54% of the companies in the same industry.
- FOO has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
- FOO's Debt to FCF ratio of 0.65 is amongst the best of the industry. FOO outperforms 84.21% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that FOO is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.14, FOO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 4.74 |
ROIC/WACC0.92
WACC10.93%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that FOO may have some problems paying its short term obligations.
- With a Current ratio value of 0.98, FOO is not doing good in the industry: 72.81% of the companies in the same industry are doing better.
- FOO has a Quick Ratio of 0.98. This is a bad value and indicates that FOO is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.98, FOO is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.76% 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
- Looking at the last year, FOO shows a quite strong growth in Revenue. The Revenue has grown by 8.41% in the last year.
- Measured over the past years, FOO 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
- The Earnings Per Share is expected to grow by 14.75% on average over the next years. This is quite good.
- FOO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.51% yearly.
EPS Next Y16.58%
EPS Next 2Y14%
EPS Next 3Y13.91%
EPS Next 5Y14.75%
Revenue Next Year9.34%
Revenue Next 2Y10.17%
Revenue Next 3Y9.88%
Revenue Next 5Y9.51%
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
- The Price/Earnings ratio is 19.92, which indicates a rather expensive current valuation of FOO.
- Compared to the rest of the industry, the Price/Earnings ratio of FOO indicates a rather cheap valuation: FOO is cheaper than 80.70% of the companies listed in the same industry.
- FOO is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 17.33 indicates a rather expensive valuation of FOO.
- 78.95% of the companies in the same industry are more expensive than FOO, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, FOO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
- 63.16% of the companies in the same industry are more expensive than FOO, based on the Enterprise Value to EBITDA ratio.
- 81.58% 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 | 16.95 | ||
| EV/EBITDA | 17.25 |
4.3 Compensation for Growth
- FOO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of FOO may justify a higher PE ratio.
- A more expensive valuation may be justified as FOO's earnings are expected to grow with 13.91% in the coming years.
PEG (NY)1.2
PEG (5Y)0.72
EPS Next 2Y14%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
- FOO has a yearly dividend return of 0.73%, which is pretty low.
- FOO's Dividend Yield is a higher than the industry average which is at 0.68.
- With a Dividend Yield of 0.73, FOO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- FOO pays out 21.86% of its income as dividend. This is a sustainable payout ratio.
DP21.86%
EPS Next 2Y14%
EPS Next 3Y13.91%
SALESFORCE INC / FOO.DE FAQ
What is the fundamental rating for FOO stock?
ChartMill assigns a fundamental rating of 6 / 10 to FOO.DE.
Can you provide the valuation status for SALESFORCE INC?
ChartMill assigns a valuation rating of 6 / 10 to SALESFORCE INC (FOO.DE). This can be considered as Fairly Valued.
What is the profitability of FOO stock?
SALESFORCE INC (FOO.DE) has a profitability rating of 7 / 10.
What is the valuation of SALESFORCE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SALESFORCE INC (FOO.DE) is 19.92 and the Price/Book (PB) ratio is 3.64.
Is the dividend of SALESFORCE INC sustainable?
The dividend rating of SALESFORCE INC (FOO.DE) is 3 / 10 and the dividend payout ratio is 21.86%.