SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
BIT:1CRM - Euronext Milan - US79466L3024 - Common Stock - Currency: EUR
Overall 1CRM gets a fundamental rating of 6 out of 10. We evaluated 1CRM against 101 industry peers in the Software industry. While 1CRM has a great profitability rating, there are some minor concerns on its financial health. 1CRM is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, 1CRM could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year 1CRM was profitable.
1CRM had a positive operating cash flow in the past year.
Each year in the past 5 years 1CRM has been profitable.
1CRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1CRM (6.02%) is better than 65.35% of its industry peers.
1CRM's Return On Equity of 10.13% is in line compared to the rest of the industry. 1CRM outperforms 59.41% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.53%, 1CRM is in the better half of the industry, outperforming 68.32% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1CRM is significantly below the industry average of 10.99%.
The last Return On Invested Capital (8.53%) for 1CRM is above the 3 year average (5.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 10.13% | ||
| ROIC | 8.53% |
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
1CRM has a better Profit Margin (16.35%) than 74.26% of its industry peers.
1CRM's Profit Margin has improved in the last couple of years.
1CRM's Operating Margin of 20.23% is fine compared to the rest of the industry. 1CRM outperforms 74.26% of its industry peers.
In the last couple of years the Operating Margin of 1CRM has grown nicely.
1CRM has a Gross Margin of 77.19%. This is in the better half of the industry: 1CRM outperforms 63.37% of its industry peers.
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 | 20.23% | ||
| PM (TTM) | 16.35% | ||
| GM | 77.19% |
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
1CRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1CRM has less shares outstanding than it did 1 year ago.
1CRM has more shares outstanding than it did 5 years ago.
1CRM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.65 indicates that 1CRM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.65, 1CRM is doing good in the industry, outperforming 68.32% of the companies in the same industry.
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.
1CRM has a better Debt to FCF ratio (0.68) than 84.16% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that 1CRM is not too dependend on debt financing.
1CRM's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. 1CRM outperforms 74.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.65 |
ROIC/WACC0.78
WACC10.93%
2.3 Liquidity
1CRM has a Current Ratio of 1.06. This is a normal value and indicates that 1CRM is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.06, 1CRM is not doing good in the industry: 63.37% of the companies in the same industry are doing better.
A Quick Ratio of 1.06 indicates that 1CRM should not have too much problems paying its short term obligations.
1CRM has a worse Quick ratio (1.06) than 61.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
1CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.12%, which is quite impressive.
1CRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.71% yearly.
Looking at the last year, 1CRM shows a quite strong growth in Revenue. The Revenue has grown by 8.72% in the last year.
Measured over the past years, 1CRM shows a quite strong growth in Revenue. The Revenue has been growing by 17.25% on average per year.
EPS 1Y (TTM)24.12%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%21.4%
Revenue 1Y (TTM)8.72%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.6%
3.2 Future
The Earnings Per Share is expected to grow by 11.03% on average over the next years. This is quite good.
1CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.94% yearly.
EPS Next Y10.49%
EPS Next 2Y11.41%
EPS Next 3Y13.04%
EPS Next 5Y11.03%
Revenue Next Year7.56%
Revenue Next 2Y8.34%
Revenue Next 3Y9.15%
Revenue Next 5Y8.94%
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
1CRM is valuated quite expensively with a Price/Earnings ratio of 25.79.
Compared to the rest of the industry, the Price/Earnings ratio of 1CRM indicates a somewhat cheap valuation: 1CRM is cheaper than 77.23% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1CRM to the average of the S&P500 Index (26.25), we can say 1CRM is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.33, the valuation of 1CRM can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CRM indicates a somewhat cheap valuation: 1CRM is cheaper than 63.37% of the companies listed in the same industry.
1CRM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.79 | ||
| Fwd PE | 23.33 |
4.2 Price Multiples
1CRM's Enterprise Value to EBITDA is on the same level as the industry average.
75.25% of the companies in the same industry are more expensive than 1CRM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.27 | ||
| EV/EBITDA | 22.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1CRM does not grow enough to justify the current Price/Earnings ratio.
1CRM has a very decent profitability rating, which may justify a higher PE ratio.
1CRM's earnings are expected to grow with 13.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.46
PEG (5Y)0.93
EPS Next 2Y11.41%
EPS Next 3Y13.04%
5. Dividend
5.1 Amount
1CRM has a yearly dividend return of 0.59%, which is pretty low.
1CRM's Dividend Yield is a higher than the industry average which is at 1.87.
With a Dividend Yield of 0.59, 1CRM pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
24.80% of the earnings are spent on dividend by 1CRM. This is a low number and sustainable payout ratio.
DP24.8%
EPS Next 2Y11.41%
EPS Next 3Y13.04%
BIT:1CRM (5/30/2025, 7:00:00 PM)
232.85
-10.75 (-4.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners82.99%
Inst Owner ChangeN/A
Ins Owners2.56%
Ins Owner ChangeN/A
Market Cap223.41B
Analysts79.31
Price Target331.23 (42.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend1.42
Dividend Growth(5Y)N/A
DP24.8%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.61%
Min EPS beat(2)-2.3%
Max EPS beat(2)5.52%
EPS beat(4)3
Avg EPS beat(4)3.11%
Min EPS beat(4)-2.3%
Max EPS beat(4)7.51%
EPS beat(8)7
Avg EPS beat(8)3.58%
EPS beat(12)11
Avg EPS beat(12)6.98%
EPS beat(16)15
Avg EPS beat(16)14.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-0.54%
Revenue beat(12)2
Avg Revenue beat(12)-0.2%
Revenue beat(16)5
Avg Revenue beat(16)-0.08%
PT rev (1m)-4.9%
PT rev (3m)-13.65%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.79 | ||
| Fwd PE | 23.33 | ||
| P/S | 6.65 | ||
| P/FCF | 20.27 | ||
| P/OCF | 19.25 | ||
| P/B | 4.12 | ||
| P/tB | 46.14 | ||
| EV/EBITDA | 22.69 |
EPS(TTM)9.03
EY3.88%
EPS(NY)9.98
Fwd EY4.29%
FCF(TTM)11.49
FCFY4.93%
OCF(TTM)12.1
OCFY5.19%
SpS35.01
BVpS56.52
TBVpS5.05
PEG (NY)2.46
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 10.13% | ||
| ROCE | 10.23% | ||
| ROIC | 8.53% | ||
| ROICexc | 10.5% | ||
| ROICexgc | 122.89% | ||
| OM | 20.23% | ||
| PM (TTM) | 16.35% | ||
| GM | 77.19% | ||
| FCFM | 32.81% |
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-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 18.92% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.49% | ||
| Profit Quality | 200.65% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.65 |
F-Score8
WACC10.93%
ROIC/WACC0.78
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)24.12%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%21.4%
EPS Next Y10.49%
EPS Next 2Y11.41%
EPS Next 3Y13.04%
EPS Next 5Y11.03%
Revenue 1Y (TTM)8.72%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.6%
Revenue Next Year7.56%
Revenue Next 2Y8.34%
Revenue Next 3Y9.15%
Revenue Next 5Y8.94%
EBIT growth 1Y27.79%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year36.48%
EBIT Next 3Y15.97%
EBIT Next 5Y12.18%
FCF growth 1Y30.91%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y27.93%
OCF growth 3Y29.7%
OCF growth 5Y24.76%