SALESFORCE INC (CRM) Stock Fundamental Analysis
NYSE:CRM - US79466L3024 - Common Stock
248.29 USD
+2.46 (+1%)
248.8 USD
+0.51 (+0.21%)
Taking everything into account, CRM scores 7 out of 10 in our fundamental rating. CRM was compared to 282 industry peers in the Software industry. CRM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CRM has a decent growth rate and is not valued too expensively. 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.
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
CRM has a Return On Assets of 6.29%. This is in the better half of the industry: CRM outperforms 75.62% 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 78.09% of the companies in the same industry.
CRM has a Return On Invested Capital of 8.87%. This is amongst the best in the industry. CRM outperforms 82.33% of its industry peers.
CRM had an Average Return On Invested Capital over the past 3 years of 5.83%. This is significantly below the industry average of 11.99%.
The 3 year average ROIC (5.83%) for CRM 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
CRM's Profit Margin of 16.08% is amongst the best of the industry. CRM outperforms 80.21% of its industry peers.
In the last couple of years the Profit Margin of CRM has grown nicely.
With an excellent Operating Margin value of 20.50%, CRM belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
In the last couple of years the Operating Margin of CRM has grown nicely.
CRM has a Gross Margin of 77.34%. This is in the better half of the industry: CRM outperforms 74.56% of its industry peers.
CRM's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRM is destroying value.
CRM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CRM has more shares outstanding
CRM has a better debt/assets ratio than last year.
2.2 Solvency
CRM has an Altman-Z score of 4.68. This indicates that CRM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.68, CRM is doing good in the industry, outperforming 68.20% 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.
With a decent Debt to FCF ratio value of 0.67, CRM is doing good in the industry, outperforming 77.39% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that CRM is not too dependend on debt financing.
CRM has a Debt to Equity ratio (0.14) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 4.68 |
ROIC/WACC0.8
WACC11.14%
2.3 Liquidity
A Current Ratio of 1.07 indicates that CRM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, CRM is not doing good in the industry: 69.26% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 1.07, CRM is not doing good in the industry: 68.20% 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 | 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, CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.71% on average per year.
CRM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.97%.
CRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.25% yearly.
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 2Y11.95%
EPS Next 3Y12.55%
EPS Next 5Y12.04%
Revenue Next Year8.56%
Revenue Next 2Y8.84%
Revenue Next 3Y9.25%
Revenue Next 5Y9.62%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CRM is valuated rather expensively with a Price/Earnings ratio of 24.04.
Compared to the rest of the industry, the Price/Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 71.02% of the companies listed in the same industry.
CRM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
A Price/Forward Earnings ratio of 19.44 indicates a rather expensive valuation of CRM.
Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than 76.33% of the companies in the same industry.
CRM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.04 | ||
| Fwd PE | 19.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRM is valued cheaper than 80.92% of the companies in the same industry.
81.98% 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 | 18.77 | ||
| EV/EBITDA | 19.55 |
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.
CRM's earnings are expected to grow with 12.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.98
PEG (5Y)0.87
EPS Next 2Y11.95%
EPS Next 3Y12.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, CRM is not a good candidate for dividend investing.
CRM's Dividend Yield is rather good when compared to the industry average which is at 56.88. CRM pays more dividend than 92.23% of the companies in the same industry.
With a Dividend Yield of 0.68, CRM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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 25.00% of its income as dividend. This is a sustainable payout ratio.
DP25%
EPS Next 2Y11.95%
EPS Next 3Y12.55%
248.29
+2.46 (+1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.98%
Inst Owner Change-1.87%
Ins Owners2.52%
Ins Owner Change0.78%
Market Cap237.37B
Analysts79.31
Price Target355.14 (43.03%)
Short Float %1.47%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.59
Dividend Growth(5Y)N/A
DP25%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-1.34%
PT rev (3m)-4.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.69%
EPS NY rev (1m)0%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.04 | ||
| Fwd PE | 19.44 | ||
| P/S | 6.15 | ||
| P/FCF | 18.77 | ||
| P/OCF | 17.82 | ||
| P/B | 3.91 | ||
| P/tB | 44.35 | ||
| EV/EBITDA | 19.55 |
EPS(TTM)10.33
EY4.16%
EPS(NY)12.77
Fwd EY5.14%
FCF(TTM)13.23
FCFY5.33%
OCF(TTM)13.93
OCFY5.61%
SpS40.37
BVpS63.46
TBVpS5.6
PEG (NY)1.98
PEG (5Y)0.87
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 | 4.68 |
F-Score8
WACC11.14%
ROIC/WACC0.8
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 2Y11.95%
EPS Next 3Y12.55%
EPS Next 5Y12.04%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.62%
Revenue Next Year8.56%
Revenue Next 2Y8.84%
Revenue Next 3Y9.25%
Revenue Next 5Y9.62%
EBIT growth 1Y20.01%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year36.84%
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%