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

By Mill Chart

Last update: Feb 7, 2024

Our stock screening tool has pinpointed SALESFORCE INC (NYSE:CRM) as a growth stock that isn't overvalued. NYSE:CRM is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Assessing Growth Metrics for NYSE:CRM

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CRM has earned a 8 for growth:

  • CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.34%, which is quite impressive.
  • 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
  • The Revenue is expected to grow by 11.78% on average over the next years. This is quite good.

How do we evaluate the Valuation for NYSE:CRM?

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:CRM has earned a 5 for valuation:

  • Compared to the rest of the industry, the Price/Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 72.92% of the companies listed in the same industry.
  • Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than the industry average as 73.65% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRM indicates a rather cheap valuation: CRM is cheaper than 81.23% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 79.06% of the companies listed in the same industry.
  • CRM's 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.
  • A more expensive valuation may be justified as CRM's earnings are expected to grow with 28.85% in the coming years.

Health Examination 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:

  • An Altman-Z score of 5.78 indicates that CRM is not in any danger for bankruptcy at the moment.
  • CRM has a better Altman-Z score (5.78) than 73.29% of its industry peers.
  • CRM has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
  • CRM has a Debt to FCF ratio of 1.07. This is amongst the best in the industry. CRM outperforms 80.14% of its industry peers.
  • A Debt/Equity ratio of 0.15 indicates that CRM is not too dependend on debt financing.

Assessing Profitability for 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:

  • Looking at the Return On Assets, with a value of 2.85%, CRM is in the better half of the industry, outperforming 79.06% of the companies in the same industry.
  • CRM's Return On Equity of 4.46% is fine compared to the rest of the industry. CRM outperforms 77.62% of its industry peers.
  • CRM has a better Return On Invested Capital (4.73%) than 80.14% of its industry peers.
  • The 3 year average ROIC (0.90%) for CRM is below the current ROIC(4.73%), indicating increased profibility in the last year.
  • CRM has a better Profit Margin (7.63%) than 83.03% of its industry peers.
  • The Operating Margin of CRM (15.87%) is better than 88.45% of its industry peers.
  • In the last couple of years the Operating Margin of CRM has grown nicely.
  • CRM has a better Gross Margin (74.99%) than 69.68% of its industry peers.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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SALESFORCE INC

NYSE:CRM (5/21/2024, 7:17:16 PM)

After market: 283.76 0 (0%)

283.76

-3.31 (-1.15%)

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