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SALESFORCE INC (CRM) Stock Fundamental Analysis

NYSE:CRM - New York Stock Exchange, Inc. - US79466L3024 - Common Stock - Currency: USD

250.74  -7.59 (-2.94%)

After market: 250.73 -0.01 (0%)

Fundamental Rating

7

Overall CRM gets a fundamental rating of 7 out of 10. We evaluated CRM against 281 industry peers in the Software industry. CRM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CRM has a correct valuation and a medium growth rate. These ratings would make CRM suitable for quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

CRM had positive earnings in the past year.
CRM had a positive operating cash flow in the past year.
In the past 5 years CRM has always been profitable.
Each year in the past 5 years CRM had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B

1.2 Ratios

The Return On Assets of CRM (6.29%) is better than 77.66% of its industry peers.
Looking at the Return On Equity, with a value of 10.23%, CRM is in the better half of the industry, outperforming 78.37% of the companies in the same industry.
The Return On Invested Capital of CRM (8.87%) is better than 84.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CRM is significantly below the industry average of 12.11%.
The 3 year average ROIC (5.83%) for CRM is below the current ROIC(8.87%), indicating increased profibility in the last year.
Industry RankSector 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%
CRM Yearly ROA, ROE, ROICCRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10

1.3 Margins

Looking at the Profit Margin, with a value of 16.08%, CRM belongs to the top of the industry, outperforming 82.27% of the companies in the same industry.
In the last couple of years the Profit Margin of CRM has grown nicely.
CRM has a Operating Margin of 20.50%. This is amongst the best in the industry. CRM outperforms 87.94% of its industry peers.
CRM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 77.34%, CRM is in the better half of the industry, outperforming 74.47% of the companies in the same industry.
In the last couple of years the Gross Margin of CRM has remained more or less at the same level.
Industry RankSector 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%
CRM Yearly Profit, Operating, Gross MarginsCRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRM is destroying value.
The number of shares outstanding for CRM has been reduced compared to 1 year ago.
The number of shares outstanding for CRM has been increased compared to 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 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

CRM has an Altman-Z score of 4.72. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.72, CRM is doing good in the industry, outperforming 68.44% of the companies in the same industry.
CRM has a debt to FCF ratio of 0.67. This is a very positive value and a sign of high solvency as it would only need 0.67 years to pay back of all of its debts.
CRM has a better Debt to FCF ratio (0.67) than 76.60% 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 RankSector Rank
Debt/Equity 0.14
Debt/FCF 0.67
Altman-Z 4.72
ROIC/WACC0.87
WACC10.2%
CRM Yearly LT Debt VS Equity VS FCFCRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.3 Liquidity

CRM has a Current Ratio of 1.07. This is a normal value and indicates that CRM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CRM (1.07) is worse than 70.92% of its industry peers.
CRM has a Quick Ratio of 1.07. This is a normal value and indicates that CRM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, CRM is doing worse than 69.50% of the companies in the same industry.
CRM does not score too well on the current and quick ratio evaluation. However, as it has 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 1.07
Quick Ratio 1.07
CRM Yearly Current Assets VS Current LiabilitesCRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.29% over the past year.
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 small growth in Revenue. The Revenue has grown by 7.97% in the last year.
The Revenue has been growing by 17.25% on average over the past years. This is quite good.
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

CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.04% yearly.
CRM 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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CRM Yearly Revenue VS EstimatesCRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B
CRM Yearly EPS VS EstimatesCRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 24.27, which indicates a rather expensive current valuation of CRM.
Based on the Price/Earnings ratio, CRM is valued a bit cheaper than the industry average as 71.99% of the companies are valued more expensively.
CRM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.82.
CRM is valuated rather expensively with a Price/Forward Earnings ratio of 19.63.
CRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 74.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. CRM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 24.27
Fwd PE 19.63
CRM Price Earnings VS Forward Price EarningsCRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CRM is valued cheaply inside the industry as 80.85% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CRM is valued cheaper than 80.85% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.95
EV/EBITDA 19.75
CRM Per share dataCRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CRM has an outstanding profitability rating, which may justify a higher PE ratio.
CRM's earnings are expected to grow with 12.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)0.88
EPS Next 2Y11.96%
EPS Next 3Y12.58%

3

5. Dividend

5.1 Amount

With a yearly dividend of 0.62%, CRM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 31.86, CRM pays a better dividend. On top of this CRM pays more dividend than 91.84% of the companies listed in the same industry.
With a Dividend Yield of 0.62, CRM pays less dividend than the S&P500 average, which is at 2.39.
Industry RankSector Rank
Dividend Yield 0.62%

5.2 History

CRM is new to the dividend game and has less than 3 years of track record.
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

25.00% of the earnings are spent on dividend by CRM. This is a low number and sustainable payout ratio.
DP25%
EPS Next 2Y11.96%
EPS Next 3Y12.58%
CRM Yearly Income VS Free CF VS DividendCRM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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

SALESFORCE INC

NYSE:CRM (8/1/2025, 8:04:00 PM)

After market: 250.73 -0.01 (0%)

250.74

-7.59 (-2.94%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-28 2025-05-28/amc
Earnings (Next)08-27 2025-08-27/amc
Inst Owners83.85%
Inst Owner Change-0.87%
Ins Owners2.52%
Ins Owner Change0.81%
Market Cap239.71B
Analysts79.67
Price Target359.96 (43.56%)
Short Float %1.66%
Short Ratio1.98
Dividend
Industry RankSector Rank
Dividend Yield 0.62%
Yearly Dividend1.59
Dividend Growth(5Y)N/A
DP25%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-18 2025-06-18 (0.416)
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)-0.04%
PT rev (3m)-4.07%
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 RankSector Rank
PE 24.27
Fwd PE 19.63
P/S 6.21
P/FCF 18.95
P/OCF 17.99
P/B 3.95
P/tB 44.79
EV/EBITDA 19.75
EPS(TTM)10.33
EY4.12%
EPS(NY)12.77
Fwd EY5.09%
FCF(TTM)13.23
FCFY5.28%
OCF(TTM)13.93
OCFY5.56%
SpS40.37
BVpS63.46
TBVpS5.6
PEG (NY)2
PEG (5Y)0.88
Profitability
Industry RankSector 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 RankSector 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 4.72
F-Score8
WACC10.2%
ROIC/WACC0.87
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%