SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CRM - US79466L3024 - Common Stock
260.57 USD
+13.11 (+5.3%)
260.75 USD
+0.18 (+0.07%)
Taking everything into account, CRM scores 6 out of 10 in our fundamental rating. CRM was compared to 282 industry peers in the Software industry. CRM has an excellent profitability rating, but there are some minor concerns on its financial health. CRM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CRM was profitable.
In the past year CRM had a positive cash flow from operations.
CRM had positive earnings in each of the past 5 years.
CRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CRM (7.59%) is better than 78.72% of its industry peers.
Looking at the Return On Equity, with a value of 12.03%, CRM is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.03%, CRM belongs to the top of the industry, outperforming 84.40% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CRM is significantly below the industry average of 12.03%.
The 3 year average ROIC (5.83%) for CRM is below the current ROIC(10.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 12.03% | ||
| ROIC | 10.03% |
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
The Profit Margin of CRM (17.91%) is better than 81.91% of its industry peers.
CRM's Profit Margin has improved in the last couple of years.
The Operating Margin of CRM (21.99%) is better than 88.65% of its industry peers.
In the last couple of years the Operating Margin of CRM has grown nicely.
With a decent Gross Margin value of 77.73%, CRM is doing good in the industry, outperforming 74.82% of the companies in the same industry.
CRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.99% | ||
| PM (TTM) | 17.91% | ||
| GM | 77.73% |
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
CRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CRM has less shares outstanding than it did 1 year ago.
CRM has more shares outstanding than it did 5 years ago.
CRM has a better debt/assets ratio than last year.
2.2 Solvency
CRM has an Altman-Z score of 5.27. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CRM (5.27) is better than 71.99% of its industry peers.
CRM has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
CRM's Debt to FCF ratio of 0.65 is fine compared to the rest of the industry. CRM outperforms 78.37% of its industry peers.
CRM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
CRM has a Debt to Equity ratio (0.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 5.27 |
ROIC/WACC0.93
WACC10.78%
2.3 Liquidity
CRM has a Current Ratio of 0.98. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CRM (0.98) is worse than 74.82% of its industry peers.
CRM has a Quick Ratio of 0.98. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.98, CRM is not doing good in the industry: 73.76% of the companies in the same industry are doing better.
The current and quick ratio evaluation for CRM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.76%, which is quite good.
Measured over the past years, CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.71% on average per year.
The Revenue has grown by 8.41% in the past year. This is quite good.
The Revenue has been growing by 17.25% on average over the past years. This is quite good.
EPS 1Y (TTM)18.76%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%34.85%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
3.2 Future
The Earnings Per Share is expected to grow by 13.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.37% on average over the next years. This is quite good.
EPS Next Y12.73%
EPS Next 2Y12.3%
EPS Next 3Y12.79%
EPS Next 5Y13.63%
Revenue Next Year8.71%
Revenue Next 2Y8.86%
Revenue Next 3Y8.97%
Revenue Next 5Y9.37%
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
CRM is valuated rather expensively with a Price/Earnings ratio of 22.62.
Based on the Price/Earnings ratio, CRM is valued a bit cheaper than the industry average as 71.63% of the companies are valued more expensively.
CRM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.28 indicates a rather expensive valuation of CRM.
CRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 72.34% of the companies in the same industry.
CRM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 20.28 |
4.2 Price Multiples
CRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CRM is cheaper than 78.37% of the companies in the same industry.
79.79% of the companies in the same industry are more expensive than CRM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.24 | ||
| EV/EBITDA | 19.82 |
4.3 Compensation for Growth
CRM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CRM may justify a higher PE ratio.
CRM's earnings are expected to grow with 12.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.78
PEG (5Y)0.82
EPS Next 2Y12.3%
EPS Next 3Y12.79%
5. Dividend
5.1 Amount
CRM has a yearly dividend return of 0.71%, which is pretty low.
Compared to an average industry Dividend Yield of 60.86, CRM pays a better dividend. On top of this CRM pays more dividend than 90.07% of the companies listed in the same industry.
With a Dividend Yield of 0.71, CRM pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
CRM does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CRM pays out 21.86% of its income as dividend. This is a sustainable payout ratio.
DP21.86%
EPS Next 2Y12.3%
EPS Next 3Y12.79%
260.57
+13.11 (+5.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.15%
Inst Owner Change-0.96%
Ins Owners2.53%
Ins Owner Change0.52%
Market Cap248.06B
Revenue(TTM)40.32B
Net Income(TTM)7.22B
Analysts79.31
Price Target330.41 (26.8%)
Short Float %1.91%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend1.59
Dividend Growth(5Y)N/A
DP21.86%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.16%
Min EPS beat(2)3.73%
Max EPS beat(2)12.58%
EPS beat(4)4
Avg EPS beat(4)5.55%
Min EPS beat(4)0.37%
Max EPS beat(4)12.58%
EPS beat(8)7
Avg EPS beat(8)3.66%
EPS beat(12)11
Avg EPS beat(12)5.61%
EPS beat(16)15
Avg EPS beat(16)7.06%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.55%
Revenue beat(12)2
Avg Revenue beat(12)-0.14%
Revenue beat(16)3
Avg Revenue beat(16)-0.22%
PT rev (1m)-1.68%
PT rev (3m)-6.41%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)2.11%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 20.28 | ||
| P/S | 6.15 | ||
| P/FCF | 19.24 | ||
| P/OCF | 18.37 | ||
| P/B | 4.13 | ||
| P/tB | 60.9 | ||
| EV/EBITDA | 19.82 |
EPS(TTM)11.52
EY4.42%
EPS(NY)12.85
Fwd EY4.93%
FCF(TTM)13.55
FCFY5.2%
OCF(TTM)14.18
OCFY5.44%
SpS42.35
BVpS63.05
TBVpS4.28
PEG (NY)1.78
PEG (5Y)0.82
Graham Number127.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 12.03% | ||
| ROCE | 12.02% | ||
| ROIC | 10.03% | ||
| ROICexc | 11.85% | ||
| ROICexgc | 114.46% | ||
| OM | 21.99% | ||
| PM (TTM) | 17.91% | ||
| GM | 77.73% | ||
| FCFM | 31.98% |
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-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 17.92% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.18% | ||
| Profit Quality | 178.55% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 5.27 |
F-Score8
WACC10.78%
ROIC/WACC0.93
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)18.76%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%34.85%
EPS Next Y12.73%
EPS Next 2Y12.3%
EPS Next 3Y12.79%
EPS Next 5Y13.63%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
Revenue Next Year8.71%
Revenue Next 2Y8.86%
Revenue Next 3Y8.97%
Revenue Next 5Y9.37%
EBIT growth 1Y20.74%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year37.4%
EBIT Next 3Y18.63%
EBIT Next 5Y15.55%
FCF growth 1Y46.33%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y40.37%
OCF growth 3Y29.7%
OCF growth 5Y24.76%
SALESFORCE INC / CRM FAQ
What is the ChartMill fundamental rating of SALESFORCE INC (CRM) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CRM.
What is the valuation status of SALESFORCE INC (CRM) stock?
ChartMill assigns a valuation rating of 6 / 10 to SALESFORCE INC (CRM). This can be considered as Fairly Valued.
Can you provide the profitability details for SALESFORCE INC?
SALESFORCE INC (CRM) has a profitability rating of 8 / 10.
What is the expected EPS growth for SALESFORCE INC (CRM) stock?
The Earnings per Share (EPS) of SALESFORCE INC (CRM) is expected to grow by 12.73% in the next year.
Is the dividend of SALESFORCE INC sustainable?
The dividend rating of SALESFORCE INC (CRM) is 3 / 10 and the dividend payout ratio is 21.86%.