SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
Europe - BIT:1CRM - US79466L3024 - Common Stock
211.6 EUR
+2.5 (+1.2%)
Taking everything into account, 1CRM scores 6 out of 10 in our fundamental rating. 1CRM was compared to 111 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 valued too expensively and it also shows a decent growth rate.
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.
1CRM had positive earnings in each of the past 5 years.
In the past 5 years 1CRM always reported a positive cash flow from operatings.
1.2 Ratios
1CRM has a better Return On Assets (6.83%) than 62.16% of its industry peers.
1CRM has a Return On Equity (10.86%) which is comparable to the rest of the industry.
1CRM has a better Return On Invested Capital (9.32%) than 71.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1CRM is significantly below the industry average of 12.66%.
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
1CRM has a better Profit Margin (16.87%) than 71.17% of its industry peers.
1CRM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.22%, 1CRM is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
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 63.96% 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
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.
The debt/assets ratio for 1CRM has been reduced compared to a year ago.
2.2 Solvency
1CRM has an Altman-Z score of 4.86. This indicates that 1CRM is financially healthy and has little risk of bankruptcy at the moment.
1CRM's Altman-Z score of 4.86 is fine compared to the rest of the industry. 1CRM outperforms 65.77% 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 83.78% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that 1CRM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, 1CRM is in the better half of the industry, outperforming 69.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.86 |
ROIC/WACC0.86
WACC10.82%
2.3 Liquidity
A Current Ratio of 1.12 indicates that 1CRM should not have too much problems paying its short term obligations.
1CRM's Current ratio of 1.12 is on the low side compared to the rest of the industry. 1CRM is outperformed by 61.26% of its industry peers.
1CRM has a Quick 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.
1CRM has a Quick ratio of 1.12. This is comparable to the rest of the industry: 1CRM outperforms 41.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
1CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.62%, which is quite good.
The Earnings Per Share has been growing by 27.71% on average over the past years. This is a very strong growth
Looking at the last year, 1CRM shows a quite strong growth in Revenue. The Revenue has grown by 8.33% in the last year.
1CRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.25% yearly.
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
The Earnings Per Share is expected to grow by 13.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.33% on average over the next years. This is quite good.
EPS Next Y12.74%
EPS Next 2Y12.31%
EPS Next 3Y12.83%
EPS Next 5Y13.48%
Revenue Next Year8.71%
Revenue Next 2Y8.85%
Revenue Next 3Y9.15%
Revenue Next 5Y9.33%
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 22.93 indicates a rather expensive valuation of 1CRM.
1CRM's Price/Earnings ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 74.77% of the companies in the same industry.
1CRM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 19.06, the valuation of 1CRM can be described as rather expensive.
Based on the Price/Forward Earnings ratio, 1CRM is valued a bit cheaper than 71.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. 1CRM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.93 | ||
| Fwd PE | 19.06 |
4.2 Price Multiples
60.36% of the companies in the same industry are more expensive than 1CRM, based on the Enterprise Value to EBITDA ratio.
78.38% 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 | 18.66 | ||
| EV/EBITDA | 18.86 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 12.83% in the coming years.
PEG (NY)1.8
PEG (5Y)0.83
EPS Next 2Y12.31%
EPS Next 3Y12.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, 1CRM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.24, 1CRM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, 1CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 3Y12.83%
BIT:1CRM (11/12/2025, 7:00:00 PM)
211.6
+2.5 (+1.2%)
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 Cap201.44B
Revenue(TTM)39.50B
Net Income(TTM)6.66B
Analysts79.32
Price Target292.22 (38.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend1.38
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)0.66%
PT rev (3m)-6.15%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.93 | ||
| Fwd PE | 19.06 | ||
| P/S | 5.9 | ||
| P/FCF | 18.66 | ||
| P/OCF | 17.71 | ||
| P/B | 3.8 | ||
| P/tB | 37.48 | ||
| EV/EBITDA | 18.86 |
EPS(TTM)9.23
EY4.36%
EPS(NY)11.1
Fwd EY5.25%
FCF(TTM)11.34
FCFY5.36%
OCF(TTM)11.95
OCFY5.65%
SpS35.84
BVpS55.65
TBVpS5.65
PEG (NY)1.8
PEG (5Y)0.83
Graham Number107.5
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 | 4.86 |
F-Score9
WACC10.82%
ROIC/WACC0.86
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 3Y12.83%
EPS Next 5Y13.48%
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 3Y9.15%
Revenue Next 5Y9.33%
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 22.93 and the Price/Book (PB) ratio is 3.8.
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%.