Is NYSE:CRM on the Verge of a Major Breakout as a Strong Growth Stock?

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.

What does the Growth looks like 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 72.34% over the past year.
• Measured over the past years, CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.21% on average per year.
• CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.08%.
• 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 21.32% on average over the next years. This is a very strong growth
• Based on estimates for the next years, CRM will show a quite strong growth in Revenue. The Revenue will grow by 11.83% on average per year.

ChartMill's Evaluation of Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CRM has achieved a 5 out of 10:

• CRM has an Altman-Z score of 5.66. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
• CRM's Altman-Z score of 5.66 is fine compared to the rest of the industry. CRM outperforms 72.66% of its industry peers.
• The Debt to FCF ratio of CRM is 1.07, which is an excellent value as it means it would take CRM, only 1.07 years of fcf income to pay off all of its debts.
• CRM has a Debt to FCF ratio of 1.07. This is in the better half of the industry: CRM outperforms 79.86% 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.

Profitability Examination for NYSE:CRM

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CRM has achieved a 7:

• The Return On Assets of CRM (2.85%) is better than 79.14% of its industry peers.
• With a decent Return On Equity value of 4.46%, CRM is doing good in the industry, outperforming 77.70% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 4.73%, CRM belongs to the best of the industry, outperforming 80.22% of the companies in the same industry.
• The 3 year average ROIC (0.90%) for CRM is below the current ROIC(4.73%), indicating increased profibility in the last year.
• The Profit Margin of CRM (7.63%) is better than 83.45% of its industry peers.
• Looking at the Operating Margin, with a value of 15.87%, CRM belongs to the top of the industry, outperforming 88.49% of the companies in the same industry.
• In the last couple of years the Operating Margin of CRM has grown nicely.
• CRM has a better Gross Margin (74.99%) than 69.42% of its industry peers.

How does the Setup look for NYSE:CRM

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:CRM scores a 7 out of 10:

Besides having an excellent technical rating, CRM also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

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

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.