SALESFORCE INC (CRM) Stock Fundamental Analysis

NYSE:CRM • US79466L3024

185.16 USD
-0.13 (-0.07%)
At close: Feb 20, 2026
185.67 USD
+0.51 (+0.28%)
After Hours: 2/20/2026, 8:25:50 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to CRM. CRM was compared to 276 industry peers in the Software industry. CRM has an excellent profitability rating, but there are some minor concerns on its financial health. CRM may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make CRM a good candidate for value investing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • CRM had positive earnings in the past year.
  • In the past year CRM had a positive cash flow from operations.
  • CRM had positive earnings in each of the past 5 years.
  • In the past 5 years CRM always reported a positive cash flow from operatings.
CRM Yearly Net Income VS EBIT VS OCF VS FCFCRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B

1.2 Ratios

  • With a decent Return On Assets value of 7.59%, CRM is doing good in the industry, outperforming 78.26% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 12.03%, CRM is in the better half of the industry, outperforming 75.72% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 10.05%, CRM belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
  • CRM had an Average Return On Invested Capital over the past 3 years of 5.83%. This is below the industry average of 10.64%.
  • The last Return On Invested Capital (10.05%) for CRM is above the 3 year average (5.83%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.59%
ROE 12.03%
ROIC 10.05%
ROA(3y)3.46%
ROA(5y)3.61%
ROE(3y)5.81%
ROE(5y)5.94%
ROIC(3y)5.83%
ROIC(5y)3.79%
CRM Yearly ROA, ROE, ROICCRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 4 6 8 10

1.3 Margins

  • CRM has a better Profit Margin (17.91%) than 80.43% of its industry peers.
  • In the last couple of years the Profit Margin of CRM has grown nicely.
  • CRM has a Operating Margin of 22.03%. This is amongst the best in the industry. CRM outperforms 87.68% of its industry peers.
  • CRM's Operating Margin has improved in the last couple of years.
  • CRM's Gross Margin of 77.73% is fine compared to the rest of the industry. CRM outperforms 74.64% of its industry peers.
  • In the last couple of years the Gross Margin of CRM has remained more or less at the same level.
Industry RankSector Rank
OM 22.03%
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%
CRM Yearly Profit, Operating, Gross MarginsCRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRM is destroying value.
  • Compared to 1 year ago, CRM has less shares outstanding
  • CRM has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for CRM has been reduced compared to a year ago.
CRM Yearly Shares OutstandingCRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
CRM Yearly Total Debt VS Total AssetsCRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • An Altman-Z score of 4.00 indicates that CRM is not in any danger for bankruptcy at the moment.
  • CRM has a better Altman-Z score (4.00) than 73.19% of its industry peers.
  • The Debt to FCF ratio of CRM is 0.65, which is an excellent value as it means it would take CRM, only 0.65 years of fcf income to pay off all of its debts.
  • CRM's Debt to FCF ratio of 0.65 is fine compared to the rest of the industry. CRM outperforms 77.54% 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 of 0.14. This is comparable to the rest of the industry: CRM outperforms 48.55% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 0.65
Altman-Z 4
ROIC/WACC0.93
WACC10.83%
CRM Yearly LT Debt VS Equity VS FCFCRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 0.98 indicates that CRM may have some problems paying its short term obligations.
  • CRM has a worse Current ratio (0.98) than 75.72% of its industry peers.
  • A Quick Ratio of 0.98 indicates that CRM may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.98, CRM is doing worse than 74.64% of the companies in the same industry.
  • 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 RankSector Rank
Current Ratio 0.98
Quick Ratio 0.98
CRM Yearly Current Assets VS Current LiabilitesCRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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.
  • 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, CRM shows a quite strong growth in Revenue. The Revenue has grown by 8.41% in the last year.
  • Measured over the past years, CRM shows a quite strong growth in Revenue. The Revenue has been growing by 17.25% on average per year.
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

  • CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.75% yearly.
  • CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.51% yearly.
EPS Next Y16.58%
EPS Next 2Y14.07%
EPS Next 3Y13.96%
EPS Next 5Y14.75%
Revenue Next Year9.34%
Revenue Next 2Y10.17%
Revenue Next 3Y9.88%
Revenue Next 5Y9.51%

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.
  • 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.
CRM Yearly Revenue VS EstimatesCRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
CRM Yearly EPS VS EstimatesCRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 16.07, which indicates a correct valuation of CRM.
  • Based on the Price/Earnings ratio, CRM is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 26.99. CRM is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 13.96, CRM is valued correctly.
  • Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than 77.17% of the companies in the same industry.
  • CRM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 16.07
Fwd PE 13.96
CRM Price Earnings VS Forward Price EarningsCRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CRM is valued cheaper than 81.16% of the companies in the same industry.
  • CRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRM is cheaper than 84.06% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.45
EV/EBITDA 13.73
CRM Per share dataCRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • CRM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of CRM may justify a higher PE ratio.
  • CRM's earnings are expected to grow with 13.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)0.58
EPS Next 2Y14.07%
EPS Next 3Y13.96%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • CRM has a yearly dividend return of 0.90%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.60, CRM pays a better dividend. On top of this CRM pays more dividend than 90.58% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, CRM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.9%

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
CRM Yearly Dividends per shareCRM Yearly Dividends per shareYearly Dividends per share 2024 2025 0.5 1 1.5

5.3 Sustainability

  • 21.86% of the earnings are spent on dividend by CRM. This is a low number and sustainable payout ratio.
DP21.86%
EPS Next 2Y14.07%
EPS Next 3Y13.96%
CRM Yearly Income VS Free CF VS DividendCRM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B
CRM Dividend Payout.CRM Dividend Payout, showing the Payout Ratio.CRM Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

SALESFORCE INC

NYSE:CRM (2/20/2026, 8:25:50 PM)

After market: 185.67 +0.51 (+0.28%)

185.16

-0.13 (-0.07%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03
Earnings (Next)02-26
Inst Owners84.48%
Inst Owner Change-0.77%
Ins Owners2.57%
Ins Owner Change0.18%
Market Cap173.49B
Revenue(TTM)40.32B
Net Income(TTM)7.22B
Analysts79.66
Price Target330.06 (78.26%)
Short Float %1.94%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield 0.9%
Yearly Dividend1.59
Dividend Growth(5Y)N/A
DP21.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-0.65%
PT rev (3m)-1.78%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.2%
EPS NY rev (1m)0%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.58%
Valuation
Industry RankSector Rank
PE 16.07
Fwd PE 13.96
P/S 4.3
P/FCF 13.45
P/OCF 12.85
P/B 2.89
P/tB 42.6
EV/EBITDA 13.73
EPS(TTM)11.52
EY6.22%
EPS(NY)13.26
Fwd EY7.16%
FCF(TTM)13.76
FCFY7.43%
OCF(TTM)14.41
OCFY7.78%
SpS43.03
BVpS64.06
TBVpS4.35
PEG (NY)0.97
PEG (5Y)0.58
Graham Number128.85
Profitability
Industry RankSector Rank
ROA 7.59%
ROE 12.03%
ROCE 12.04%
ROIC 10.05%
ROICexc 11.87%
ROICexgc 114.64%
OM 22.03%
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 RankSector Rank
Debt/Equity 0.14
Debt/FCF 0.65
Debt/EBITDA 0.69
Cap/Depr 17.92%
Cap/Sales 1.51%
Interest Coverage 38.61
Cash Conversion 110.06%
Profit Quality 178.55%
Current Ratio 0.98
Quick Ratio 0.98
Altman-Z 4
F-Score8
WACC10.83%
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 Y16.58%
EPS Next 2Y14.07%
EPS Next 3Y13.96%
EPS Next 5Y14.75%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
Revenue Next Year9.34%
Revenue Next 2Y10.17%
Revenue Next 3Y9.88%
Revenue Next 5Y9.51%
EBIT growth 1Y20.93%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year40.83%
EBIT Next 3Y19.57%
EBIT Next 5Y14.79%
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 for CRM stock?

ChartMill assigns a valuation rating of 7 / 10 to SALESFORCE INC (CRM). This can be considered as Undervalued.


Can you provide the profitability details for SALESFORCE INC?

SALESFORCE INC (CRM) has a profitability rating of 8 / 10.


What is the valuation of SALESFORCE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for SALESFORCE INC (CRM) is 16.07 and the Price/Book (PB) ratio is 2.89.


How financially healthy is SALESFORCE INC?

The financial health rating of SALESFORCE INC (CRM) is 6 / 10.