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Why NYSE:CRM Is a Standout High-Growth Stock in a Consolidation Phase.

By Mill Chart

Last update: Nov 28, 2023

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.

Understanding NYSE:CRM's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:CRM boasts a 8 out of 10:

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

How We Gauge Health for NYSE:CRM

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CRM has received a 5 out of 10:

  • CRM has an Altman-Z score of 4.47. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
  • CRM has a better Altman-Z score (4.47) than 70.36% 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's Debt to FCF ratio of 1.25 is fine compared to the rest of the industry. CRM outperforms 78.93% 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 employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CRM, the assigned 7 is noteworthy for profitability:

  • CRM has a Return On Assets of 1.71%. This is in the better half of the industry: CRM outperforms 75.00% of its industry peers.
  • CRM has a better Return On Equity (2.72%) than 76.79% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 3.77%, CRM is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
  • The 3 year average ROIC (0.90%) for CRM is below the current ROIC(3.77%), indicating increased profibility in the last year.
  • With a decent Profit Margin value of 4.77%, CRM is doing good in the industry, outperforming 78.57% of the companies in the same industry.
  • With an excellent Operating Margin value of 12.98%, CRM belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
  • CRM's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 74.52%, CRM is doing good in the industry, outperforming 68.21% of the companies in the same industry.

How does the Setup look for NYSE:CRM

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:CRM this score is currently 7:

Besides having an excellent technical rating, CRM also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. Another positive sign is the recent Pocket Pivot signal.

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

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

Check the latest full technical report of CRM for a complete technical analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NYSE:CRM (2/23/2024, 10:10:07 AM)


-1.79 (-0.61%)

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