SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CRM - US79466L3024 - Common Stock
210.3 EUR
+7.55 (+3.72%)
Overall 1CRM gets a fundamental rating of 6 out of 10. We evaluated 1CRM against 116 industry peers in the Software industry. While 1CRM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1CRM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1CRM had positive earnings in the past year.
In the past year 1CRM had a positive cash flow from operations.
In the past 5 years 1CRM has always been profitable.
Each year in the past 5 years 1CRM had a positive operating cash flow.
1.2 Ratios
1CRM has a Return On Assets of 6.83%. This is in the better half of the industry: 1CRM outperforms 62.93% of its industry peers.
1CRM has a Return On Equity (10.86%) which is comparable to the rest of the industry.
The Return On Invested Capital of 1CRM (9.32%) is better than 70.69% of its industry peers.
1CRM had an Average Return On Invested Capital over the past 3 years of 5.83%. This is significantly below the industry average of 13.28%.
The last Return On Invested Capital (9.32%) for 1CRM is above the 3 year average (5.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 10.86% | ||
| ROIC | 9.32% |
ROA(3y)3.46%
ROA(5y)3.61%
ROE(3y)5.81%
ROE(5y)5.94%
ROIC(3y)5.83%
ROIC(5y)3.79%
1.3 Margins
With a decent Profit Margin value of 16.87%, 1CRM is doing good in the industry, outperforming 69.83% of the companies in the same industry.
1CRM's Profit Margin has improved in the last couple of years.
1CRM has a Operating Margin of 21.22%. This is in the better half of the industry: 1CRM outperforms 75.86% of its industry peers.
In the last couple of years the Operating Margin of 1CRM has grown nicely.
With a decent Gross Margin value of 77.65%, 1CRM is doing good in the industry, outperforming 62.93% of the companies in the same industry.
In the last couple of years the Gross Margin of 1CRM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.22% | ||
| PM (TTM) | 16.87% | ||
| GM | 77.65% |
OM growth 3Y107.25%
OM growth 5Y49.51%
PM growth 3Y44.23%
PM growth 5Y85.88%
GM growth 3Y1.66%
GM growth 5Y0.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1CRM is destroying value.
The number of shares outstanding for 1CRM has been reduced compared to 1 year ago.
Compared to 5 years ago, 1CRM has more shares outstanding
Compared to 1 year ago, 1CRM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.72 indicates that 1CRM is not in any danger for bankruptcy at the moment.
1CRM has a better Altman-Z score (4.72) than 68.97% of its industry peers.
1CRM has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.68, 1CRM belongs to the top of the industry, outperforming 84.48% of the companies in the same industry.
1CRM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
1CRM has a better Debt to Equity ratio (0.14) than 69.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.72 |
ROIC/WACC0.87
WACC10.67%
2.3 Liquidity
1CRM has a Current Ratio of 1.12. This is a normal value and indicates that 1CRM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.12, 1CRM is doing worse than 62.07% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that 1CRM should not have too much problems paying its short term obligations.
1CRM has a Quick ratio of 1.12. This is comparable to the rest of the industry: 1CRM outperforms 40.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.62% over the past year.
1CRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.71% yearly.
1CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.33%.
The Revenue has been growing by 17.25% on average over the past years. This is quite good.
EPS 1Y (TTM)13.62%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%13.67%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%9.77%
3.2 Future
Based on estimates for the next years, 1CRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.63% on average per year.
Based on estimates for the next years, 1CRM will show a quite strong growth in Revenue. The Revenue will grow by 9.37% on average per year.
EPS Next Y12.74%
EPS Next 2Y12.31%
EPS Next 3Y12.89%
EPS Next 5Y13.63%
Revenue Next Year8.71%
Revenue Next 2Y8.85%
Revenue Next 3Y9.18%
Revenue Next 5Y9.37%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.98 indicates a rather expensive valuation of 1CRM.
Based on the Price/Earnings ratio, 1CRM is valued a bit cheaper than the industry average as 76.72% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1CRM to the average of the S&P500 Index (26.41), we can say 1CRM is valued inline with the index average.
1CRM is valuated rather expensively with a Price/Forward Earnings ratio of 19.09.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CRM indicates a somewhat cheap valuation: 1CRM is cheaper than 74.14% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.40. 1CRM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 19.09 |
4.2 Price Multiples
1CRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 62.07% of the companies in the same industry.
1CRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1CRM is cheaper than 80.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.69 | ||
| EV/EBITDA | 18.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1CRM may justify a higher PE ratio.
1CRM's earnings are expected to grow with 12.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.8
PEG (5Y)0.83
EPS Next 2Y12.31%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, 1CRM is not a good candidate for dividend investing.
1CRM's Dividend Yield is a higher than the industry average which is at 2.22.
Compared to an average S&P500 Dividend Yield of 2.32, 1CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
23.50% of the earnings are spent on dividend by 1CRM. This is a low number and sustainable payout ratio.
DP23.5%
EPS Next 2Y12.31%
EPS Next 3Y12.89%
BIT:1CRM (12/4/2025, 7:00:00 PM)
210.3
+7.55 (+3.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.17%
Inst Owner ChangeN/A
Ins Owners2.53%
Ins Owner ChangeN/A
Market Cap200.21B
Revenue(TTM)39.50B
Net Income(TTM)6.66B
Analysts79.32
Price Target288.59 (37.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend1.37
Dividend Growth(5Y)N/A
DP23.5%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.05%
Min EPS beat(2)0.37%
Max EPS beat(2)3.73%
EPS beat(4)3
Avg EPS beat(4)1.83%
Min EPS beat(4)-2.3%
Max EPS beat(4)5.52%
EPS beat(8)7
Avg EPS beat(8)2.26%
EPS beat(12)11
Avg EPS beat(12)5.73%
EPS beat(16)15
Avg EPS beat(16)8.56%
Revenue beat(2)0
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-0.53%
Revenue beat(12)2
Avg Revenue beat(12)-0.12%
Revenue beat(16)3
Avg Revenue beat(16)-0.15%
PT rev (1m)-1.11%
PT rev (3m)-5.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 19.09 | ||
| P/S | 5.91 | ||
| P/FCF | 18.69 | ||
| P/OCF | 17.74 | ||
| P/B | 3.81 | ||
| P/tB | 37.55 | ||
| EV/EBITDA | 18.18 |
EPS(TTM)9.15
EY4.35%
EPS(NY)11.01
Fwd EY5.24%
FCF(TTM)11.25
FCFY5.35%
OCF(TTM)11.86
OCFY5.64%
SpS35.56
BVpS55.21
TBVpS5.6
PEG (NY)1.8
PEG (5Y)0.83
Graham Number106.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 10.86% | ||
| ROCE | 11.17% | ||
| ROIC | 9.32% | ||
| ROICexc | 11.72% | ||
| ROICexgc | 153.28% | ||
| OM | 21.22% | ||
| PM (TTM) | 16.87% | ||
| GM | 77.65% | ||
| FCFM | 31.64% |
ROA(3y)3.46%
ROA(5y)3.61%
ROE(3y)5.81%
ROE(5y)5.94%
ROIC(3y)5.83%
ROIC(5y)3.79%
ROICexc(3y)7.18%
ROICexc(5y)4.68%
ROICexgc(3y)84.54%
ROICexgc(5y)53.64%
ROCE(3y)6.99%
ROCE(5y)4.55%
ROICexgc growth 3Y144.43%
ROICexgc growth 5Y51.1%
ROICexc growth 3Y136.01%
ROICexc growth 5Y54.45%
OM growth 3Y107.25%
OM growth 5Y49.51%
PM growth 3Y44.23%
PM growth 5Y85.88%
GM growth 3Y1.66%
GM growth 5Y0.52%
F-Score9
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 20.05% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 36.44 | ||
| Cash Conversion | 112.25% | ||
| Profit Quality | 187.56% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 4.72 |
F-Score9
WACC10.67%
ROIC/WACC0.87
Cap/Depr(3y)19.53%
Cap/Depr(5y)21.06%
Cap/Sales(3y)2.13%
Cap/Sales(5y)2.49%
Profit Quality(3y)1155.13%
Profit Quality(5y)786.34%
High Growth Momentum
Growth
EPS 1Y (TTM)13.62%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%13.67%
EPS Next Y12.74%
EPS Next 2Y12.31%
EPS Next 3Y12.89%
EPS Next 5Y13.63%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%9.77%
Revenue Next Year8.71%
Revenue Next 2Y8.85%
Revenue Next 3Y9.18%
Revenue Next 5Y9.37%
EBIT growth 1Y20.59%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year38.23%
EBIT Next 3Y16.28%
EBIT Next 5Y15.55%
FCF growth 1Y65.28%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y56.77%
OCF growth 3Y29.7%
OCF growth 5Y24.76%
SALESFORCE INC / 1CRM.MI FAQ
What is the ChartMill fundamental rating of SALESFORCE INC (1CRM.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1CRM.MI.
What is the valuation status of SALESFORCE INC (1CRM.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to SALESFORCE INC (1CRM.MI). This can be considered as Fairly Valued.
How profitable is SALESFORCE INC (1CRM.MI) stock?
SALESFORCE INC (1CRM.MI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for 1CRM stock?
The Price/Earnings (PE) ratio for SALESFORCE INC (1CRM.MI) is 22.98 and the Price/Book (PB) ratio is 3.81.
Is the dividend of SALESFORCE INC sustainable?
The dividend rating of SALESFORCE INC (1CRM.MI) is 3 / 10 and the dividend payout ratio is 23.5%.