SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
Europe - BIT:1CRM - US79466L3024 - Common Stock
209.3 EUR
+9.82 (+4.92%)
Taking everything into account, 1CRM scores 6 out of 10 in our fundamental rating. 1CRM was compared to 103 industry peers in the Software industry. Both the health and profitability get an excellent rating, making 1CRM a very profitable company, without any liquidiy or solvency issues. 1CRM has a correct valuation and a medium growth rate. These ratings could make 1CRM a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year 1CRM was profitable.
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
The Return On Assets of 1CRM (6.83%) is better than 66.99% of its industry peers.
Looking at the Return On Equity, with a value of 10.86%, 1CRM is in the better half of the industry, outperforming 61.16% of the companies in the same industry.
The Return On Invested Capital of 1CRM (9.32%) is better than 70.87% 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 12.80%.
The 3 year average ROIC (5.83%) for 1CRM is below the current ROIC(9.32%), indicating increased profibility in the last year.
| 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
The Profit Margin of 1CRM (16.87%) is better than 71.84% of its industry peers.
1CRM's Profit Margin has improved in the last couple of years.
1CRM has a better Operating Margin (21.22%) than 76.70% 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 63.11% of the companies in the same industry.
1CRM's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for 1CRM has been increased compared to 5 years ago.
1CRM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.89 indicates that 1CRM is not in any danger for bankruptcy at the moment.
1CRM has a Altman-Z score of 4.89. This is in the better half of the industry: 1CRM outperforms 64.08% 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.
The Debt to FCF ratio of 1CRM (0.68) is better than 83.50% of its industry peers.
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 Debt to Equity ratio of 0.14. This is in the better half of the industry: 1CRM outperforms 71.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.89 |
ROIC/WACC0.85
WACC10.94%
2.3 Liquidity
A Current Ratio of 1.12 indicates that 1CRM should not have too much problems paying its short term obligations.
1CRM has a Current ratio (1.12) which is in line with its industry peers.
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 (1.12) which is in line with 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.
Measured over the past years, 1CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.71% on average per year.
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 12.04% on average per year.
1CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.62% yearly.
EPS Next Y12.13%
EPS Next 2Y11.95%
EPS Next 3Y12.86%
EPS Next 5Y12.04%
Revenue Next Year8.7%
Revenue Next 2Y8.86%
Revenue Next 3Y9%
Revenue Next 5Y9.62%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.15, which indicates a rather expensive current valuation of 1CRM.
1CRM's Price/Earnings ratio is rather cheap when compared to the industry. 1CRM is cheaper than 80.58% of the companies in the same industry.
1CRM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.37, which indicates a rather expensive current valuation of 1CRM.
77.67% of the companies in the same industry are more expensive than 1CRM, based on the Price/Forward Earnings ratio.
1CRM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 19.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1CRM is valued a bit cheaper than the industry average as 60.19% of the companies are valued more expensively.
1CRM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 79.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.84 | ||
| EV/EBITDA | 19.05 |
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.
A more expensive valuation may be justified as 1CRM's earnings are expected to grow with 12.86% in the coming years.
PEG (NY)1.91
PEG (5Y)0.84
EPS Next 2Y11.95%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, 1CRM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.08, 1CRM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.68, 1CRM pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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 2Y11.95%
EPS Next 3Y12.86%
BIT:1CRM (9/18/2025, 7:00:00 PM)
209.3
+9.82 (+4.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.98%
Inst Owner ChangeN/A
Ins Owners2.52%
Ins Owner ChangeN/A
Market Cap199.25B
Analysts79.66
Price Target290.3 (38.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.36
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)-6.77%
PT rev (3m)-8.37%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)0.37%
EPS NY rev (1m)0%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 19.37 | ||
| P/S | 5.96 | ||
| P/FCF | 18.84 | ||
| P/OCF | 17.88 | ||
| P/B | 3.84 | ||
| P/tB | 37.85 | ||
| EV/EBITDA | 19.05 |
EPS(TTM)9.04
EY4.32%
EPS(NY)10.81
Fwd EY5.16%
FCF(TTM)11.11
FCFY5.31%
OCF(TTM)11.71
OCFY5.59%
SpS35.11
BVpS54.51
TBVpS5.53
PEG (NY)1.91
PEG (5Y)0.84
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%
ROICexcg growth 3Y144.43%
ROICexcg 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 | 4.89 |
F-Score9
WACC10.94%
ROIC/WACC0.85
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 Y12.13%
EPS Next 2Y11.95%
EPS Next 3Y12.86%
EPS Next 5Y12.04%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%9.77%
Revenue Next Year8.7%
Revenue Next 2Y8.86%
Revenue Next 3Y9%
Revenue Next 5Y9.62%
EBIT growth 1Y20.59%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year36.84%
EBIT Next 3Y18.7%
EBIT Next 5Y15.41%
FCF growth 1Y65.28%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y56.77%
OCF growth 3Y29.7%
OCF growth 5Y24.76%