SALESFORCE INC (CRM) Stock Fundamental Analysis
USA - NYSE:CRM - US79466L3024 - Common Stock
236.05 USD
-4.31 (-1.79%)
Overall CRM gets a fundamental rating of 7 out of 10. We evaluated CRM against 281 industry peers in the Software industry. CRM gets an excellent profitability rating and is at the same time showing great financial health properties. CRM is not valued too expensively and it also shows a decent growth rate. This makes CRM very considerable for quality investing!
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.
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
Looking at the Return On Assets, with a value of 6.83%, CRM is in the better half of the industry, outperforming 75.44% of the companies in the same industry.
With a decent Return On Equity value of 10.86%, CRM is doing good in the industry, outperforming 77.58% of the companies in the same industry.
CRM has a better Return On Invested Capital (9.32%) than 82.92% 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 11.98%.
The last Return On Invested Capital (9.32%) for CRM is above the 3 year average (5.83%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 16.87%. This is amongst the best in the industry. CRM outperforms 81.49% of its industry peers.
CRM's Profit Margin has improved in the last couple of years.
CRM's Operating Margin of 21.22% is amongst the best of the industry. CRM outperforms 87.19% of its industry peers.
CRM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 77.65%, CRM is doing good in the industry, outperforming 74.73% 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 | 21.22% | ||
| 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
CRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CRM has less shares outstanding
Compared to 5 years ago, CRM has more shares outstanding
The debt/assets ratio for CRM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.78 indicates that CRM is not in any danger for bankruptcy at the moment.
CRM has a Altman-Z score of 4.78. This is in the better half of the industry: CRM outperforms 67.62% of its industry peers.
The Debt to FCF ratio of CRM is 0.68, which is an excellent value as it means it would take CRM, only 0.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CRM (0.68) is better than 77.94% 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.
With a Debt to Equity ratio value of 0.14, CRM perfoms like the industry average, outperforming 51.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.78 |
ROIC/WACC0.84
WACC11.09%
2.3 Liquidity
A Current Ratio of 1.12 indicates that CRM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.12, CRM is not doing good in the industry: 66.90% of the companies in the same industry are doing better.
A Quick Ratio of 1.12 indicates that CRM should not have too much problems paying its short term obligations.
CRM's Quick ratio of 1.12 is on the low side compared to the rest of the industry. CRM is outperformed by 65.48% of its industry peers.
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 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.
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)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.
The Revenue is expected to grow by 9.26% on average over the next years. This is quite good.
EPS Next Y12.75%
EPS Next 2Y12.34%
EPS Next 3Y12.76%
EPS Next 5Y12.19%
Revenue Next Year8.7%
Revenue Next 2Y8.86%
Revenue Next 3Y9.15%
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
With a Price/Earnings ratio of 22.10, CRM is valued on the expensive side.
CRM's Price/Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 75.09% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. CRM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.35, CRM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than the industry average as 76.87% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, CRM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 18.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRM is valued cheaply inside the industry as 81.49% of the companies are valued more expensively.
82.56% 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 | 17.98 | ||
| EV/EBITDA | 18.49 |
4.3 Compensation for Growth
The 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 12.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.73
PEG (5Y)0.8
EPS Next 2Y12.34%
EPS Next 3Y12.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, 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 27.57. CRM pays more dividend than 91.10% of the companies in the same industry.
With a Dividend Yield of 0.70, CRM pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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
23.50% of the earnings are spent on dividend by CRM. This is a low number and sustainable payout ratio.
DP23.5%
EPS Next 2Y12.34%
EPS Next 3Y12.76%
NYSE:CRM (10/6/2025, 10:02:09 AM)
236.05
-4.31 (-1.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.17%
Inst Owner Change0%
Ins Owners2.53%
Ins Owner Change0.67%
Market Cap224.72B
Analysts79.66
Price Target342.13 (44.94%)
Short Float %1.41%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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)-3.1%
PT rev (3m)-4.99%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 18.35 | ||
| P/S | 5.69 | ||
| P/FCF | 17.98 | ||
| P/OCF | 17.06 | ||
| P/B | 3.66 | ||
| P/tB | 36.12 | ||
| EV/EBITDA | 18.49 |
EPS(TTM)10.68
EY4.52%
EPS(NY)12.86
Fwd EY5.45%
FCF(TTM)13.13
FCFY5.56%
OCF(TTM)13.83
OCFY5.86%
SpS41.49
BVpS64.42
TBVpS6.53
PEG (NY)1.73
PEG (5Y)0.8
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%
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-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 | 4.78 |
F-Score9
WACC11.09%
ROIC/WACC0.84
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 Y12.75%
EPS Next 2Y12.34%
EPS Next 3Y12.76%
EPS Next 5Y12.19%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%9.77%
Revenue Next Year8.7%
Revenue Next 2Y8.86%
Revenue Next 3Y9.15%
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%