SALESFORCE INC (FOO.DE) Stock Fundamental Analysis
FRA:FOO - Deutsche Boerse Ag - US79466L3024 - Common Stock - Currency: EUR
Overall FOO gets a fundamental rating of 6 out of 10. We evaluated FOO against 98 industry peers in the Software industry. FOO has an excellent profitability rating, but there are some minor concerns on its financial health. FOO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make FOO suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year FOO was profitable.
FOO had a positive operating cash flow in the past year.
In the past 5 years FOO has always been profitable.
In the past 5 years FOO always reported a positive cash flow from operatings.
1.2 Ratios
FOO has a Return On Assets of 6.49%. This is in the better half of the industry: FOO outperforms 63.22% of its industry peers.
FOO has a better Return On Equity (10.14%) than 60.92% of its industry peers.
FOO has a Return On Invested Capital (5.87%) which is in line with its industry peers.
FOO had an Average Return On Invested Capital over the past 3 years of 2.22%. This is significantly below the industry average of 11.66%.
The 3 year average ROIC (2.22%) for FOO is below the current ROIC(5.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 10.14% | ||
| ROIC | 5.87% |
ROA(3y)1.96%
ROA(5y)2.45%
ROE(3y)3.26%
ROE(5y)3.99%
ROIC(3y)2.22%
ROIC(5y)1.57%
1.3 Margins
FOO has a better Profit Margin (15.96%) than 72.41% of its industry peers.
FOO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.75%, FOO is in the better half of the industry, outperforming 74.71% of the companies in the same industry.
FOO's Operating Margin has improved in the last couple of years.
The Gross Margin of FOO (76.94%) is comparable to the rest of the industry.
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 | 19.75% | ||
| PM (TTM) | 15.96% | ||
| GM | 76.94% |
OM growth 3Y100.32%
OM growth 5Y32.39%
PM growth 3Y-14.76%
PM growth 5Y7.26%
GM growth 3Y0.48%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
FOO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FOO has been reduced compared to 1 year ago.
Compared to 5 years ago, FOO has more shares outstanding
FOO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.88 indicates that FOO is not in any danger for bankruptcy at the moment.
The Altman-Z score of FOO (6.88) is better than 72.41% of its industry peers.
The Debt to FCF ratio of FOO is 0.71, which is an excellent value as it means it would take FOO, only 0.71 years of fcf income to pay off all of its debts.
FOO has a Debt to FCF ratio of 0.71. This is in the better half of the industry: FOO outperforms 78.16% of its industry peers.
FOO has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
FOO's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. FOO outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 6.88 |
ROIC/WACC0.55
WACC10.75%
2.3 Liquidity
FOO has a Current Ratio of 1.11. This is a normal value and indicates that FOO is financially healthy and should not expect problems in meeting its short term obligations.
FOO's Current ratio of 1.11 is on the low side compared to the rest of the industry. FOO is outperformed by 64.37% of its industry peers.
A Quick Ratio of 1.11 indicates that FOO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.11, FOO is not doing good in the industry: 60.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.63% over the past year.
FOO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.05% yearly.
The Revenue has grown by 9.53% in the past year. This is quite good.
Measured over the past years, FOO shows a very strong growth in Revenue. The Revenue has been growing by 21.28% on average per year.
EPS 1Y (TTM)27.63%
EPS 3Y18.61%
EPS 5Y26.05%
EPS Q2Q%14.22%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y17.93%
Revenue growth 5Y21.28%
Sales Q2Q%8.3%
3.2 Future
The Earnings Per Share is expected to grow by 13.88% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.33% on average over the next years. This is quite good.
EPS Next Y23.38%
EPS Next 2Y17.19%
EPS Next 3Y15.9%
EPS Next 5Y13.88%
Revenue Next Year9.02%
Revenue Next 2Y9.03%
Revenue Next 3Y9.18%
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
With a Price/Earnings ratio of 34.89, FOO can be considered very expensive at the moment.
FOO's Price/Earnings ratio is a bit cheaper when compared to the industry. FOO is cheaper than 65.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, FOO is valued a bit more expensive.
With a Price/Forward Earnings ratio of 30.03, FOO can be considered very expensive at the moment.
FOO's Price/Forward Earnings is on the same level as the industry average.
FOO is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.89 | ||
| Fwd PE | 30.03 |
4.2 Price Multiples
FOO's Enterprise Value to EBITDA ratio is in line with the industry average.
70.11% 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 | 27.29 | ||
| EV/EBITDA | 29.08 |
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 15.90% in the coming years.
PEG (NY)1.49
PEG (5Y)1.34
EPS Next 2Y17.19%
EPS Next 3Y15.9%
5. Dividend
5.1 Amount
FOO has a yearly dividend return of 0.47%, which is pretty low.
Compared to an average industry Dividend Yield of 1.29, FOO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, FOO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y17.19%
EPS Next 3Y15.9%
SALESFORCE INC
FRA:FOO (2/5/2025, 4:51:36 PM)
327.6
-1.95 (-0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.35%
Inst Owner ChangeN/A
Ins Owners2.57%
Ins Owner ChangeN/A
Market Cap313.51B
Analysts79.29
Price Target383.95 (17.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.61%
Min EPS beat(2)-2.3%
Max EPS beat(2)7.51%
EPS beat(4)3
Avg EPS beat(4)1.77%
Min EPS beat(4)-2.3%
Max EPS beat(4)7.51%
EPS beat(8)7
Avg EPS beat(8)5.64%
EPS beat(12)11
Avg EPS beat(12)7.56%
EPS beat(16)15
Avg EPS beat(16)16.26%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)0.02%
Revenue beat(8)2
Avg Revenue beat(8)0.12%
Revenue beat(12)3
Avg Revenue beat(12)-0.07%
Revenue beat(16)6
Avg Revenue beat(16)0.1%
PT rev (1m)-2.68%
PT rev (3m)30.57%
EPS NQ rev (1m)-1.52%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.89 | ||
| Fwd PE | 30.03 | ||
| P/S | 8.71 | ||
| P/FCF | 27.29 | ||
| P/OCF | 25.87 | ||
| P/B | 5.54 | ||
| P/tB | 60.99 | ||
| EV/EBITDA | 29.08 |
EPS(TTM)9.39
EY2.87%
EPS(NY)10.91
Fwd EY3.33%
FCF(TTM)12.01
FCFY3.66%
OCF(TTM)12.66
OCFY3.87%
SpS37.6
BVpS59.17
TBVpS5.37
PEG (NY)1.49
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 10.14% | ||
| ROCE | 10.2% | ||
| ROIC | 5.87% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 69.82% | ||
| OM | 19.75% | ||
| PM (TTM) | 15.96% | ||
| GM | 76.94% | ||
| FCFM | 31.93% |
ROA(3y)1.96%
ROA(5y)2.45%
ROE(3y)3.26%
ROE(5y)3.99%
ROIC(3y)2.22%
ROIC(5y)1.57%
ROICexc(3y)2.72%
ROICexc(5y)1.94%
ROICexgc(3y)31.98%
ROICexgc(5y)22.19%
ROCE(3y)3.85%
ROCE(5y)2.73%
ROICexcg growth 3Y151.79%
ROICexcg growth 5Y-14.84%
ROICexc growth 3Y101.5%
ROICexc growth 5Y22.33%
OM growth 3Y100.32%
OM growth 5Y32.39%
PM growth 3Y-14.76%
PM growth 5Y7.26%
GM growth 3Y0.48%
GM growth 5Y0.4%
F-Score9
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 18.32% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 31.11 | ||
| Cash Conversion | 114.95% | ||
| Profit Quality | 200.07% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 6.88 |
F-Score9
WACC10.75%
ROIC/WACC0.55
Cap/Depr(3y)20.47%
Cap/Depr(5y)23.29%
Cap/Sales(3y)2.45%
Cap/Sales(5y)2.89%
Profit Quality(3y)1210.2%
Profit Quality(5y)1331.61%
High Growth Momentum
Growth
EPS 1Y (TTM)27.63%
EPS 3Y18.61%
EPS 5Y26.05%
EPS Q2Q%14.22%
EPS Next Y23.38%
EPS Next 2Y17.19%
EPS Next 3Y15.9%
EPS Next 5Y13.88%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y17.93%
Revenue growth 5Y21.28%
Sales Q2Q%8.3%
Revenue Next Year9.02%
Revenue Next 2Y9.03%
Revenue Next 3Y9.18%
Revenue Next 5Y9.33%
EBIT growth 1Y36.26%
EBIT growth 3Y136.24%
EBIT growth 5Y60.57%
EBIT Next Year50.09%
EBIT Next 3Y20.24%
EBIT Next 5Y12.47%
FCF growth 1Y113.64%
FCF growth 3Y32.41%
FCF growth 5Y27.64%
OCF growth 1Y98.65%
OCF growth 3Y28.7%
OCF growth 5Y24.67%