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Why NYSE:CRM Is a Promising High-Growth Stock in the Midst of Consolidation.

By Mill Chart

Last update: Feb 16, 2024

In this article, we'll take a closer look at SALESFORCE INC (NYSE:CRM) as a potential candidate for growth investing. While it's important for investors to conduct their own research, SALESFORCE INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Evaluating Growth: NYSE:CRM

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:CRM scores a 8 out of 10:

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

A Closer Look at Health for NYSE:CRM

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:CRM has earned a 5 out of 10:

  • An Altman-Z score of 5.89 indicates that CRM is not in any danger for bankruptcy at the moment.
  • CRM has a better Altman-Z score (5.89) than 70.40% 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.
  • With an excellent Debt to FCF ratio value of 1.07, CRM belongs to the best of the industry, outperforming 80.14% of the companies in the same industry.
  • CRM has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.

Evaluating Profitability: 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:

  • The Return On Assets of CRM (2.85%) is better than 79.06% of its industry peers.
  • The Return On Equity of CRM (4.46%) is better than 77.98% of its industry peers.
  • With an excellent Return On Invested Capital value of 4.73%, CRM belongs to the best of the industry, outperforming 80.14% 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.
  • CRM has a Profit Margin of 7.63%. This is amongst the best in the industry. CRM outperforms 82.67% of its industry peers.
  • Looking at the Operating Margin, with a value of 15.87%, CRM belongs to the top of the industry, outperforming 88.45% 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 69.68% of its industry peers.

Looking at the Setup

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 8:

Besides having an excellent technical rating, CRM also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 291.95. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 288.13, a Stop Loss order could be placed below this zone.

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.

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

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.



NYSE:CRM (4/22/2024, 4:42:34 PM)

After market: 274.01 +0.2 (+0.07%)


+3.44 (+1.27%)

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