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In the world of growth stocks, NYSE:CRM shines as a value proposition.

By Mill Chart

Last update: Feb 29, 2024

Discover SALESFORCE INC (NYSE:CRM), an undervalued growth gem identified by our stock screener. NYSE:CRM is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Growth Analysis for NYSE:CRM

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:

  • 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.
  • The Earnings Per Share has been growing by 31.21% on average over the past years. This is a very strong growth
  • Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 12.08% in the last year.
  • CRM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.36% yearly.
  • CRM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.32% yearly.
  • CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.83% yearly.

Deciphering NYSE:CRM's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:CRM scores a 5 out of 10:

  • Based on the Price/Earnings ratio, CRM is valued a bit cheaper than the industry average as 70.55% of the companies are valued more expensively.
  • 71.27% of the companies in the same industry are more expensive than CRM, based on the Price/Forward Earnings ratio.
  • Based on the Enterprise Value to EBITDA ratio, CRM is valued cheaper than 80.36% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CRM is valued a bit cheaper than the industry average as 77.45% of the companies are valued more expensively.
  • The 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.
  • CRM's earnings are expected to grow with 28.85% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NYSE:CRM

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:CRM scores a 5 out of 10:

  • An Altman-Z score of 6.02 indicates that CRM is not in any danger for bankruptcy at the moment.
  • CRM has a better Altman-Z score (6.02) than 72.36% 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 better Debt to FCF ratio (1.07) than 78.91% of its industry peers.
  • A Debt/Equity ratio of 0.15 indicates that CRM is not too dependend on debt financing.

Exploring NYSE:CRM's Profitability

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:

  • Looking at the Return On Assets, with a value of 2.85%, CRM is in the better half of the industry, outperforming 78.55% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 4.46%, CRM is in the better half of the industry, outperforming 77.45% of the companies in the same industry.
  • The Return On Invested Capital of CRM (4.73%) is better than 78.55% 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's Profit Margin of 7.63% is amongst the best of the industry. CRM outperforms 82.18% of its industry peers.
  • The Operating Margin of CRM (15.87%) is better than 88.36% of its industry peers.
  • CRM's Operating Margin has improved in the last couple of years.
  • CRM has a Gross Margin of 74.99%. This is in the better half of the industry: CRM outperforms 69.45% of its industry peers.

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

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

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.

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SALESFORCE INC

NYSE:CRM (4/22/2024, 7:04:00 PM)

After market: 273.81 0 (0%)

273.81

+3.44 (+1.27%)

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