SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
BIT:1CRM - Euronext Milan - US79466L3024 - Common Stock - Currency: EUR
1CRM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 97 industry peers in the Software industry. 1CRM has an excellent profitability rating, but there are some minor concerns on its financial health. 1CRM is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes 1CRM very considerable for growth investing!
1. Profitability
1.1 Basic Checks
1CRM had positive earnings in the past year.
1CRM had a positive operating cash flow in the past year.
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
The Return On Assets of 1CRM (6.02%) is better than 67.01% of its industry peers.
1CRM has a Return On Equity of 10.13%. This is in the better half of the industry: 1CRM outperforms 63.92% of its industry peers.
With a decent Return On Invested Capital value of 8.53%, 1CRM is doing good in the industry, outperforming 71.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1CRM is below the industry average of 10.77%.
The 3 year average ROIC (5.83%) for 1CRM is below the current ROIC(8.53%), indicating increased profibility in the last year.
| 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 Profit Margin of 16.35%. This is in the better half of the industry: 1CRM outperforms 78.35% of its industry peers.
In the last couple of years the Profit Margin of 1CRM has grown nicely.
1CRM has a Operating Margin of 20.23%. This is in the better half of the industry: 1CRM outperforms 78.35% of its industry peers.
In the last couple of years the Operating Margin of 1CRM has grown nicely.
1CRM's Gross Margin of 77.19% is fine compared to the rest of the industry. 1CRM outperforms 63.92% of its industry peers.
1CRM's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1CRM is destroying value.
Compared to 1 year ago, 1CRM has less shares outstanding
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
1CRM has an Altman-Z score of 4.63. This indicates that 1CRM is financially healthy and has little risk of bankruptcy at the moment.
1CRM has a Altman-Z score of 4.63. This is in the better half of the industry: 1CRM outperforms 69.07% of its industry peers.
The Debt to FCF ratio of 1CRM is 0.68, which is an excellent value as it means it would take 1CRM, only 0.68 years of fcf income to pay off all of its debts.
1CRM's Debt to FCF ratio of 0.68 is amongst the best of the industry. 1CRM outperforms 82.47% 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 74.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.63 |
ROIC/WACC0.8
WACC10.71%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 1CRM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, 1CRM is doing worse than 63.92% of the companies in the same industry.
1CRM has a Quick 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.
Looking at the Quick ratio, with a value of 1.06, 1CRM is doing worse than 61.86% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 27.71% on average over the past years. This is a very strong growth
The Revenue has grown by 8.72% in the past year. This is quite good.
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
1CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.03% yearly.
Based on estimates for the next years, 1CRM will show a quite strong growth in Revenue. The Revenue will grow by 8.94% on average per year.
EPS Next Y10.49%
EPS Next 2Y11.41%
EPS Next 3Y13.04%
EPS Next 5Y11.03%
Revenue Next Year7.58%
Revenue Next 2Y8.36%
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.
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 26.86, which means the current valuation is very expensive for 1CRM.
75.26% of the companies in the same industry are more expensive than 1CRM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.29, 1CRM is valued at the same level.
A Price/Forward Earnings ratio of 24.31 indicates a rather expensive valuation of 1CRM.
67.01% of the companies in the same industry are more expensive than 1CRM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, 1CRM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 24.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1CRM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, 1CRM is valued a bit cheaper than 79.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.12 | ||
| EV/EBITDA | 22.6 |
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 13.04% in the coming years.
PEG (NY)2.56
PEG (5Y)0.97
EPS Next 2Y11.41%
EPS Next 3Y13.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, 1CRM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.91, 1CRM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, 1CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 (5/2/2025, 7:00:00 PM)
241.7
+18.95 (+8.51%)
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 Cap231.90B
Analysts79.31
Price Target320.67 (32.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend1.41
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)-14.35%
PT rev (3m)-16.94%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-3.14%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 24.31 | ||
| P/S | 6.93 | ||
| P/FCF | 21.12 | ||
| P/OCF | 20.06 | ||
| P/B | 4.29 | ||
| P/tB | 48.08 | ||
| EV/EBITDA | 22.6 |
EPS(TTM)9
EY3.72%
EPS(NY)9.94
Fwd EY4.11%
FCF(TTM)11.44
FCFY4.73%
OCF(TTM)12.05
OCFY4.98%
SpS34.87
BVpS56.3
TBVpS5.03
PEG (NY)2.56
PEG (5Y)0.97
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 | 4.63 |
F-Score8
WACC10.71%
ROIC/WACC0.8
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 Year7.58%
Revenue Next 2Y8.36%
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%