Is NYSE:CRM suited for quality investing?

In this article we will dive into SALESFORCE INC (NYSE:CRM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed SALESFORCE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:CRM highlighted

• SALESFORCE INC has achieved substantial revenue growth over the past 5 years, with a 24.36% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• SALESFORCE INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 62.6% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• SALESFORCE INC maintains a healthy Debt/Free Cash Flow Ratio of 1.07, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 1.0K%, SALESFORCE INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• SALESFORCE INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 32.56%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of SALESFORCE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to CRM. CRM was compared to 282 industry peers in the Software industry. While CRM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CRM is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make CRM suitable for growth investing!

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

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.