SALESFORCE INC (1CRM.MI) Stock Fundamental Analysis
BIT:1CRM - US79466L3024 - Common Stock
217.35 EUR
+0.6 (+0.28%)
Overall 1CRM gets a fundamental rating of 6 out of 10. We evaluated 1CRM against 108 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
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.
Each year in the past 5 years 1CRM had a positive operating cash flow.
1.2 Ratios
1CRM has a better Return On Assets (6.29%) than 64.15% of its industry peers.
With a Return On Equity value of 10.23%, 1CRM perfoms like the industry average, outperforming 59.43% of the companies in the same industry.
1CRM has a better Return On Invested Capital (8.87%) than 69.81% 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 12.79%.
The last Return On Invested Capital (8.87%) for 1CRM is above the 3 year average (5.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 10.23% | ||
| ROIC | 8.87% |
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 (16.08%) than 68.87% of its industry peers.
In the last couple of years the Profit Margin of 1CRM has grown nicely.
With a decent Operating Margin value of 20.50%, 1CRM is doing good in the industry, outperforming 75.47% of the companies in the same industry.
In the last couple of years the Operating Margin of 1CRM has grown nicely.
1CRM has a better Gross Margin (77.34%) than 62.26% of its industry peers.
1CRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.5% | ||
| PM (TTM) | 16.08% | ||
| GM | 77.34% |
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.
1CRM has less shares outstanding than it did 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
1CRM has an Altman-Z score of 4.76. This indicates that 1CRM is financially healthy and has little risk of bankruptcy at the moment.
1CRM has a Altman-Z score (4.76) which is in line with its industry peers.
The Debt to FCF ratio of 1CRM is 0.67, which is an excellent value as it means it would take 1CRM, only 0.67 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.67, 1CRM belongs to the top of the industry, outperforming 83.96% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that 1CRM is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.14, 1CRM is doing good in the industry, outperforming 70.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 4.76 |
ROIC/WACC0.8
WACC11.08%
2.3 Liquidity
1CRM has a Current Ratio of 1.07. 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 Current ratio of 1.07. This is in the lower half of the industry: 1CRM underperforms 62.26% of its industry peers.
1CRM has a Quick Ratio of 1.07. 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 Quick ratio value of 1.07, 1CRM is not doing good in the industry: 61.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.29% 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.
The Revenue has been growing slightly by 7.97% in the past 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)15.29%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%5.74%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.62%
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 12.04% yearly.
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 3Y12.55%
EPS Next 5Y12.04%
Revenue Next Year8.56%
Revenue Next 2Y8.84%
Revenue Next 3Y9.25%
Revenue Next 5Y9.62%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 24.53 indicates a rather expensive valuation of 1CRM.
1CRM's Price/Earnings ratio is rather cheap when compared to the industry. 1CRM is cheaper than 81.13% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. 1CRM is around the same levels.
A Price/Forward Earnings ratio of 19.84 indicates a rather expensive valuation of 1CRM.
Based on the Price/Forward Earnings ratio, 1CRM is valued a bit cheaper than 74.53% of the companies in the same industry.
1CRM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.53 | ||
| Fwd PE | 19.84 |
4.2 Price Multiples
1CRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1CRM is cheaper than 62.26% 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 80.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.15 | ||
| EV/EBITDA | 19.98 |
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 12.55% in the coming years.
PEG (NY)2.02
PEG (5Y)0.89
EPS Next 2Y11.95%
EPS Next 3Y12.55%
5. Dividend
5.1 Amount
1CRM has a yearly dividend return of 0.65%, which is pretty low.
The stock price of 1CRM dropped by -35.00% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.98, 1CRM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, 1CRM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1CRM pays out 25.00% of its income as dividend. This is a sustainable payout ratio.
DP25%
EPS Next 2Y11.95%
EPS Next 3Y12.55%
BIT:1CRM (8/29/2025, 7:00:00 PM)
217.35
+0.6 (+0.28%)
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 Cap207.79B
Analysts79.31
Price Target304.78 (40.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.36
Dividend Growth(5Y)N/A
DP25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.95%
Min EPS beat(2)0.37%
Max EPS beat(2)5.52%
EPS beat(4)3
Avg EPS beat(4)2.78%
Min EPS beat(4)-2.3%
Max EPS beat(4)7.51%
EPS beat(8)7
Avg EPS beat(8)3.13%
EPS beat(12)11
Avg EPS beat(12)6.7%
EPS beat(16)15
Avg EPS beat(16)12.06%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)-0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-0.54%
Revenue beat(12)2
Avg Revenue beat(12)-0.17%
Revenue beat(16)4
Avg Revenue beat(16)-0.11%
PT rev (1m)-2.2%
PT rev (3m)-7.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.69%
EPS NY rev (1m)0%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.53 | ||
| Fwd PE | 19.84 | ||
| P/S | 6.28 | ||
| P/FCF | 19.15 | ||
| P/OCF | 18.18 | ||
| P/B | 3.99 | ||
| P/tB | 45.26 | ||
| EV/EBITDA | 19.98 |
EPS(TTM)8.86
EY4.08%
EPS(NY)10.96
Fwd EY5.04%
FCF(TTM)11.35
FCFY5.22%
OCF(TTM)11.95
OCFY5.5%
SpS34.63
BVpS54.43
TBVpS4.8
PEG (NY)2.02
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 10.23% | ||
| ROCE | 10.63% | ||
| ROIC | 8.87% | ||
| ROICexc | 11.58% | ||
| ROICexgc | 390.16% | ||
| OM | 20.5% | ||
| PM (TTM) | 16.08% | ||
| GM | 77.34% | ||
| FCFM | 32.77% |
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 19.59% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.34% | ||
| Profit Quality | 203.82% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 4.76 |
F-Score8
WACC11.08%
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)15.29%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%5.74%
EPS Next Y12.13%
EPS Next 2Y11.95%
EPS Next 3Y12.55%
EPS Next 5Y12.04%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.62%
Revenue Next Year8.56%
Revenue Next 2Y8.84%
Revenue Next 3Y9.25%
Revenue Next 5Y9.62%
EBIT growth 1Y20.01%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year36.84%
EBIT Next 3Y18.7%
EBIT Next 5Y15.41%
FCF growth 1Y79.03%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y68.07%
OCF growth 3Y29.7%
OCF growth 5Y24.76%