SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - NYSE:CRM - US79466L3024 - Common Stock
251.46 USD
-2.8 (-1.1%)
251.065 USD
-0.4 (-0.16%)
We assign a fundamental rating of 7 out of 10 to CRM. CRM was compared to 285 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make CRM a good candidate for quality investing.
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.
Each year in the past 5 years CRM has been profitable.
CRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CRM (6.83%) is better than 75.79% of its industry peers.
With a decent Return On Equity value of 10.86%, CRM is doing good in the industry, outperforming 78.25% of the companies in the same industry.
CRM's Return On Invested Capital of 9.32% is amongst the best of the industry. CRM outperforms 83.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CRM is significantly below the industry average of 11.88%.
The 3 year average ROIC (5.83%) for CRM is below the current ROIC(9.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 10.86% | ||
| ROIC | 9.32% |
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
CRM's Profit Margin of 16.87% is amongst the best of the industry. CRM outperforms 81.40% of its industry peers.
CRM's Profit Margin has improved in the last couple of years.
CRM has a Operating Margin of 21.22%. This is amongst the best in the industry. CRM outperforms 87.37% of its industry peers.
In the last couple of years the Operating Margin of CRM has grown nicely.
CRM has a better Gross Margin (77.65%) than 75.09% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.22% | ||
| PM (TTM) | 16.87% | ||
| GM | 77.65% |
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 CRM is destroying value.
Compared to 1 year ago, CRM has less shares outstanding
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.
2.2 Solvency
CRM has an Altman-Z score of 5.00. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CRM (5.00) is better than 68.07% of its industry peers.
CRM has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
CRM's Debt to FCF ratio of 0.68 is fine compared to the rest of the industry. CRM outperforms 77.89% 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's Debt to Equity ratio of 0.14 is in line compared to the rest of the industry. CRM outperforms 51.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 5 |
ROIC/WACC0.86
WACC10.83%
2.3 Liquidity
A Current Ratio of 1.12 indicates that CRM should not have too much problems paying its short term obligations.
The Current ratio of CRM (1.12) is worse than 66.67% of its industry peers.
A Quick Ratio of 1.12 indicates that CRM should not have too much problems paying its short term obligations.
The Quick ratio of CRM (1.12) is worse than 65.26% of its industry peers.
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 | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.62%, which is quite good.
CRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.71% yearly.
Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 8.33% 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)13.62%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%13.67%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%9.77%
3.2 Future
Based on estimates for the next years, CRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.19% on average per year.
Based on estimates for the next years, CRM will show a quite strong growth in Revenue. The Revenue will grow by 9.26% on average per year.
EPS Next Y12.74%
EPS Next 2Y12.31%
EPS Next 3Y12.72%
EPS Next 5Y12.19%
Revenue Next Year8.71%
Revenue Next 2Y8.85%
Revenue Next 3Y8.96%
Revenue Next 5Y9.26%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.54, which indicates a rather expensive current valuation of CRM.
Compared to the rest of the industry, the Price/Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 72.28% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CRM to the average of the S&P500 Index (26.76), we can say CRM is valued inline with the index average.
The Price/Forward Earnings ratio is 19.57, which indicates a rather expensive current valuation of CRM.
Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than the industry average as 75.79% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CRM to the average of the S&P500 Index (22.63), we can say CRM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRM is valued cheaply inside the industry as 81.05% of the companies are valued more expensively.
81.40% 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 | 19.16 | ||
| EV/EBITDA | 19.61 |
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 excellent profitability rating of CRM may justify a higher PE ratio.
A more expensive valuation may be justified as CRM's earnings are expected to grow with 12.72% in the coming years.
PEG (NY)1.85
PEG (5Y)0.85
EPS Next 2Y12.31%
EPS Next 3Y12.72%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, CRM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 34.34, CRM pays a better dividend. On top of this CRM pays more dividend than 90.53% of the companies listed in the same industry.
With a Dividend Yield of 0.65, CRM pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 23.50% of its income as dividend. This is a sustainable payout ratio.
DP23.5%
EPS Next 2Y12.31%
EPS Next 3Y12.72%
251.46
-2.8 (-1.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.17%
Inst Owner Change0.11%
Ins Owners2.53%
Ins Owner Change0.5%
Market Cap239.39B
Revenue(TTM)39.50B
Net Income(TTM)6.66B
Analysts79.66
Price Target342.13 (36.06%)
Short Float %1.7%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.59
Dividend Growth(5Y)N/A
DP23.5%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.05%
Min EPS beat(2)0.37%
Max EPS beat(2)3.73%
EPS beat(4)3
Avg EPS beat(4)1.83%
Min EPS beat(4)-2.3%
Max EPS beat(4)5.52%
EPS beat(8)7
Avg EPS beat(8)2.26%
EPS beat(12)11
Avg EPS beat(12)5.73%
EPS beat(16)15
Avg EPS beat(16)8.56%
Revenue beat(2)0
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-0.53%
Revenue beat(12)2
Avg Revenue beat(12)-0.12%
Revenue beat(16)3
Avg Revenue beat(16)-0.15%
PT rev (1m)0.06%
PT rev (3m)-4.95%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 19.57 | ||
| P/S | 6.06 | ||
| P/FCF | 19.16 | ||
| P/OCF | 18.18 | ||
| P/B | 3.9 | ||
| P/tB | 38.48 | ||
| EV/EBITDA | 19.61 |
EPS(TTM)10.68
EY4.25%
EPS(NY)12.85
Fwd EY5.11%
FCF(TTM)13.13
FCFY5.22%
OCF(TTM)13.83
OCFY5.5%
SpS41.49
BVpS64.42
TBVpS6.53
PEG (NY)1.85
PEG (5Y)0.85
Graham Number124.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 10.86% | ||
| ROCE | 11.17% | ||
| ROIC | 9.32% | ||
| ROICexc | 11.72% | ||
| ROICexgc | 153.28% | ||
| OM | 21.22% | ||
| PM (TTM) | 16.87% | ||
| GM | 77.65% | ||
| FCFM | 31.64% |
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-Score9
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 20.05% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 36.44 | ||
| Cash Conversion | 112.25% | ||
| Profit Quality | 187.56% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 5 |
F-Score9
WACC10.83%
ROIC/WACC0.86
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)13.62%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%13.67%
EPS Next Y12.74%
EPS Next 2Y12.31%
EPS Next 3Y12.72%
EPS Next 5Y12.19%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%9.77%
Revenue Next Year8.71%
Revenue Next 2Y8.85%
Revenue Next 3Y8.96%
Revenue Next 5Y9.26%
EBIT growth 1Y20.59%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year38.23%
EBIT Next 3Y16.08%
EBIT Next 5Y14.45%
FCF growth 1Y65.28%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y56.77%
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 5 / 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 12.74% 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 23.5%.