NYSE:CRM: a strong growth stock preparing for the next leg up?.

Exploring Growth Potential: SALESFORCE INC (NYSE:CRM) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and SALESFORCE INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected SALESFORCE INC on our screen for growth with base formation, suggesting it merits a closer look.

Looking at the Growth

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:

• CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.38%, 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 26.05% on average per year.
• Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 11.18% in the last year.
• CRM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.28% yearly.
• CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.63% yearly.
• CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.59% yearly.

How do we evaluate the Health for NYSE:CRM?

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:CRM has earned a 7 out of 10:

• CRM has an Altman-Z score of 5.10. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
• CRM has a Altman-Z score of 5.10. This is in the better half of the industry: CRM outperforms 69.06% of its industry peers.
• CRM has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.99, CRM is in the better half of the industry, outperforming 78.06% of the companies in the same industry.
• A Debt/Equity ratio of 0.14 indicates that CRM is not too dependend on debt financing.
• The current and quick ratio evaluation for CRM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

What does the Profitability looks like for NYSE:CRM

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CRM, the assigned 8 is noteworthy for profitability:

• CRM's Return On Assets of 4.14% is fine compared to the rest of the industry. CRM outperforms 79.86% of its industry peers.
• CRM has a Return On Equity of 6.93%. This is in the better half of the industry: CRM outperforms 79.86% of its industry peers.
• CRM has a better Return On Invested Capital (6.48%) than 82.73% of its industry peers.
• The last Return On Invested Capital (6.48%) for CRM is above the 3 year average (3.04%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 11.87%, CRM belongs to the top of the industry, outperforming 84.53% of the companies in the same industry.
• In the last couple of years the Profit Margin of CRM has grown nicely.
• With an excellent Operating Margin value of 17.21%, CRM belongs to the best of the industry, outperforming 88.49% of the companies in the same industry.
• CRM's Operating Margin has improved in the last couple of years.
• CRM's Gross Margin of 75.50% is fine compared to the rest of the industry. CRM outperforms 70.50% of its industry peers.

Why is NYSE:CRM a setup?

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:

CRM has an excellent technical rating and 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 support zone below the current price at 294.40, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

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.