NYSE:CRM, a strong growth stock, setting up for a breakout.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether SALESFORCE INC (NYSE:CRM) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but SALESFORCE INC has surfaced on our radar for growth with base formation, warranting further examination.

ChartMill's Evaluation of Growth

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:

• CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.98%, which is quite impressive.
• The Earnings Per Share has been growing by 31.21% on average over the past years. This is a very strong growth
• Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 12.79% in the last year.
• The Revenue has been growing by 24.36% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 20.34% on average over the next years. This is a very strong growth
• CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.76% yearly.

Evaluating Health: NYSE:CRM

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:CRM has earned a 5 out of 10:

• An Altman-Z score of 4.18 indicates that CRM is not in any danger for bankruptcy at the moment.
• The Altman-Z score of CRM (4.18) is better than 69.93% of its industry peers.
• CRM has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of 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 77.90% of its industry peers.
• A Debt/Equity ratio of 0.15 indicates that CRM is not too dependend on debt financing.

A Closer Look at Profitability for NYSE:CRM

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CRM scores a 7 out of 10:

• With a decent Return On Assets value of 1.71%, CRM is doing good in the industry, outperforming 77.17% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 2.72%, CRM is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
• CRM has a better Return On Invested Capital (3.77%) than 78.62% of its industry peers.
• The 3 year average ROIC (0.90%) for CRM is below the current ROIC(3.77%), indicating increased profibility in the last year.
• CRM has a better Profit Margin (4.77%) than 80.43% of its industry peers.
• CRM has a better Operating Margin (12.98%) than 84.42% of its industry peers.
• In the last couple of years the Operating Margin of CRM has grown nicely.
• CRM has a better Gross Margin (74.52%) than 68.12% of its industry peers.

How do we evaluate the setup for NYSE:CRM?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:CRM exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

CRM has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 205.73, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of CRM contains the most current fundamental analsysis.

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

Disclaimer

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.