NYSE:CRM stands out as a growth opportunity that won't break the bank.

Our stock screener has singled out SALESFORCE INC (NYSE:CRM) as an attractive growth opportunity. NYSE:CRM is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Assessing Growth Metrics for NYSE:CRM

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:CRM was assigned a score of 8 for growth:

• The Earnings Per Share has grown by an impressive 60.98% over the past year.
• CRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.21% yearly.
• Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 12.79% in the last year.
• CRM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.36% yearly.
• CRM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.00% yearly.
• Based on estimates for the next years, CRM will show a quite strong growth in Revenue. The Revenue will grow by 12.18% on average per year.

Unpacking NYSE:CRM's Valuation Rating

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:CRM has achieved a 6 out of 10:

• CRM's Price/Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 79.72% of the companies in the same industry.
• 77.94% of the companies in the same industry are more expensive than CRM, based on the Price/Forward Earnings ratio.
• Based on the Enterprise Value to EBITDA ratio, CRM is valued cheaper than 84.70% of the companies in the same industry.
• 81.85% of the companies in the same industry are more expensive than CRM, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of CRM may justify a higher PE ratio.
• CRM's earnings are expected to grow with 28.67% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NYSE:CRM

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:CRM, the assigned 5 for health provides valuable insights:

• CRM has an Altman-Z score of 4.15. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 4.15, CRM is doing good in the industry, outperforming 70.82% of the companies in the same industry.
• The Debt to FCF ratio of CRM is 1.25, which is an excellent value as it means it would take CRM, only 1.25 years of fcf income to pay off all of its debts.
• CRM has a Debt to FCF ratio of 1.25. This is in the better half of the industry: CRM outperforms 76.87% of its industry peers.
• CRM has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.

Evaluating Profitability: NYSE:CRM

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CRM has earned a 7 out of 10:

• CRM has a better Return On Assets (1.71%) than 78.29% of its industry peers.
• CRM has a Return On Equity of 2.72%. This is in the better half of the industry: CRM outperforms 78.65% of its industry peers.
• CRM has a better Return On Invested Capital (3.77%) than 79.00% of its industry peers.
• The last Return On Invested Capital (3.77%) for CRM is above the 3 year average (0.90%), which is a sign of increasing profitability.
• CRM has a better Profit Margin (4.77%) than 80.78% of its industry peers.
• The Operating Margin of CRM (12.98%) is better than 84.70% of its industry peers.
• In the last couple of years the Operating Margin of CRM has grown nicely.
• Looking at the Gross Margin, with a value of 74.52%, CRM is in the better half of the industry, outperforming 68.33% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of CRM

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.