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 103 industry peers in the Software industry. 1CRM scores excellent on profitability, but 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
1CRM had positive earnings in the past year.
1CRM had a positive operating cash flow in the past year.
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
1CRM's Return On Assets of 6.29% is fine compared to the rest of the industry. 1CRM outperforms 65.05% of its industry peers.
The Return On Equity of 1CRM (10.23%) is comparable to the rest of the industry.
1CRM's Return On Invested Capital of 8.87% is fine compared to the rest of the industry. 1CRM outperforms 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 11.25%.
The 3 year average ROIC (5.83%) for 1CRM is below the current ROIC(8.87%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 16.08%, 1CRM is in the better half of the industry, outperforming 70.87% of the companies in the same industry.
In the last couple of years the Profit Margin of 1CRM has grown nicely.
The Operating Margin of 1CRM (20.50%) is better than 76.70% of its industry peers.
1CRM's Operating Margin has improved in the last couple of years.
1CRM has a better Gross Margin (77.34%) than 64.08% 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 | 20.5% | ||
| 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
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
1CRM has an Altman-Z score of 4.78. This indicates that 1CRM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1CRM (4.78) is better than 63.11% of 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.
1CRM has a better Debt to FCF ratio (0.67) 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.
The Debt to Equity ratio of 1CRM (0.14) is better than 70.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 4.78 |
ROIC/WACC0.84
WACC10.5%
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 worse Current ratio (1.07) than 61.16% of its industry peers.
A Quick Ratio of 1.07 indicates that 1CRM should not have too much problems paying its short term obligations.
The Quick ratio of 1CRM (1.07) is worse than 60.19% of its industry peers.
| 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.
1CRM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.97%.
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 2Y11.96%
EPS Next 3Y12.58%
EPS Next 5Y12.04%
Revenue Next Year8.57%
Revenue Next 2Y8.83%
Revenue Next 3Y9.25%
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.
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
The Price/Earnings ratio is 23.11, which indicates a rather expensive current valuation of 1CRM.
Based on the Price/Earnings ratio, 1CRM is valued cheaply inside the industry as 80.58% of the companies are valued more expensively.
1CRM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 18.68, 1CRM is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CRM indicates a somewhat cheap valuation: 1CRM is cheaper than 76.70% of the companies listed in the same industry.
1CRM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 18.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1CRM indicates a somewhat cheap valuation: 1CRM is cheaper than 60.19% of the companies listed in the same industry.
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 | 18.04 | ||
| EV/EBITDA | 20.1 |
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 12.58% in the coming years.
PEG (NY)1.9
PEG (5Y)0.83
EPS Next 2Y11.96%
EPS Next 3Y12.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, 1CRM is not a good candidate for dividend investing.
In the last 3 months the price of 1CRM has falen by -38.82%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.05, 1CRM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 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
25.00% of the earnings are spent on dividend by 1CRM. This is a low number and sustainable payout ratio.
DP25%
EPS Next 2Y11.96%
EPS Next 3Y12.58%
BIT:1CRM (8/8/2025, 7:00:00 PM)
204.95
-13.9 (-6.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.85%
Inst Owner ChangeN/A
Ins Owners2.52%
Ins Owner ChangeN/A
Market Cap195.93B
Analysts79.67
Price Target311.63 (52.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend1.39
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)-0.96%
PT rev (3m)-2.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.69%
EPS NY rev (1m)0%
EPS NY rev (3m)1.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 18.68 | ||
| P/S | 5.91 | ||
| P/FCF | 18.04 | ||
| P/OCF | 17.13 | ||
| P/B | 3.76 | ||
| P/tB | 42.62 | ||
| EV/EBITDA | 20.1 |
EPS(TTM)8.87
EY4.33%
EPS(NY)10.97
Fwd EY5.35%
FCF(TTM)11.36
FCFY5.54%
OCF(TTM)11.97
OCFY5.84%
SpS34.67
BVpS54.5
TBVpS4.81
PEG (NY)1.9
PEG (5Y)0.83
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 | 4.78 |
F-Score8
WACC10.5%
ROIC/WACC0.84
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 2Y11.96%
EPS Next 3Y12.58%
EPS Next 5Y12.04%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.62%
Revenue Next Year8.57%
Revenue Next 2Y8.83%
Revenue Next 3Y9.25%
Revenue Next 5Y9.62%
EBIT growth 1Y20.01%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year35.67%
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%