SALESFORCE INC (FOO.DE) Stock Fundamental Analysis
FRA:FOO - Deutsche Boerse Ag - US79466L3024 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to FOO. FOO was compared to 101 industry peers in the Software industry. While FOO has a great profitability rating, there are some minor concerns on its financial health. FOO is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make FOO a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
FOO had positive earnings in the past year.
In the past year FOO had a positive cash flow from operations.
Each year in the past 5 years FOO has been profitable.
FOO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.02%, FOO is doing good in the industry, outperforming 66.34% of the companies in the same industry.
FOO has a better Return On Equity (10.13%) than 60.40% of its industry peers.
The Return On Invested Capital of FOO (8.53%) is better than 69.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FOO is significantly below the industry average of 10.99%.
The 3 year average ROIC (5.83%) for FOO is below the current ROIC(8.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 10.13% | ||
| ROIC | 8.53% |
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
FOO's Profit Margin of 16.35% is fine compared to the rest of the industry. FOO outperforms 75.25% of its industry peers.
In the last couple of years the Profit Margin of FOO has grown nicely.
With a decent Operating Margin value of 20.23%, FOO is doing good in the industry, outperforming 75.25% of the companies in the same industry.
In the last couple of years the Operating Margin of FOO has grown nicely.
With a decent Gross Margin value of 77.19%, FOO is doing good in the industry, outperforming 64.36% of the companies in the same industry.
In the last couple of years the Gross Margin of FOO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.23% | ||
| PM (TTM) | 16.35% | ||
| GM | 77.19% |
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 FOO is destroying value.
The number of shares outstanding for FOO has been reduced compared to 1 year ago.
The number of shares outstanding for FOO has been increased compared to 5 years ago.
Compared to 1 year ago, FOO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.40 indicates that FOO is not in any danger for bankruptcy at the moment.
FOO has a Altman-Z score of 4.40. This is in the better half of the industry: FOO outperforms 65.35% of its industry peers.
FOO 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.
FOO's Debt to FCF ratio of 0.68 is amongst the best of the industry. FOO outperforms 85.15% of its industry peers.
FOO has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.14, FOO is in the better half of the industry, outperforming 75.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.4 |
ROIC/WACC0.78
WACC10.91%
2.3 Liquidity
FOO has a Current Ratio of 1.06. This is a normal value and indicates that FOO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.06, FOO is not doing good in the industry: 62.38% of the companies in the same industry are doing better.
A Quick Ratio of 1.06 indicates that FOO should not have too much problems paying its short term obligations.
FOO has a worse Quick ratio (1.06) than 60.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.12% 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
The Revenue has grown by 8.72% in the past year. This is quite good.
Measured over the past years, FOO shows a quite strong growth in Revenue. The Revenue has been growing by 17.25% on average per year.
EPS 1Y (TTM)24.12%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%21.4%
Revenue 1Y (TTM)8.72%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.6%
3.2 Future
FOO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.03% yearly.
Based on estimates for the next years, FOO will show a quite strong growth in Revenue. The Revenue will grow by 8.94% on average per year.
EPS Next Y10.48%
EPS Next 2Y11.46%
EPS Next 3Y13.04%
EPS Next 5Y11.03%
Revenue Next Year7.56%
Revenue Next 2Y8.34%
Revenue Next 3Y9.15%
Revenue Next 5Y8.94%
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
A Price/Earnings ratio of 25.79 indicates a quite expensive valuation of FOO.
Compared to the rest of the industry, the Price/Earnings ratio of FOO indicates a rather cheap valuation: FOO is cheaper than 80.20% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FOO to the average of the S&P500 Index (26.25), we can say FOO is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.34, FOO is valued on the expensive side.
69.31% of the companies in the same industry are more expensive than FOO, based on the Price/Forward Earnings ratio.
FOO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.79 | ||
| Fwd PE | 23.34 |
4.2 Price Multiples
FOO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FOO is valued cheaply inside the industry as 80.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.27 | ||
| EV/EBITDA | 21.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FOO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FOO's earnings are expected to grow with 13.04% in the coming years.
PEG (NY)2.46
PEG (5Y)0.93
EPS Next 2Y11.46%
EPS Next 3Y13.04%
5. Dividend
5.1 Amount
FOO has a yearly dividend return of 0.59%, which is pretty low.
FOO's Dividend Yield is a higher than the industry average which is at 1.87.
Compared to an average S&P500 Dividend Yield of 2.40, FOO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
24.80% of the earnings are spent on dividend by FOO. This is a low number and sustainable payout ratio.
DP24.8%
EPS Next 2Y11.46%
EPS Next 3Y13.04%
FRA:FOO (5/30/2025, 7:00:00 PM)
232.9
+4.2 (+1.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners82.99%
Inst Owner ChangeN/A
Ins Owners2.56%
Ins Owner ChangeN/A
Market Cap223.46B
Analysts79.31
Price Target330.75 (42.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend1.41
Dividend Growth(5Y)N/A
DP24.8%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.61%
Min EPS beat(2)-2.3%
Max EPS beat(2)5.52%
EPS beat(4)3
Avg EPS beat(4)3.11%
Min EPS beat(4)-2.3%
Max EPS beat(4)7.51%
EPS beat(8)7
Avg EPS beat(8)3.58%
EPS beat(12)11
Avg EPS beat(12)6.98%
EPS beat(16)15
Avg EPS beat(16)14.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)0.02%
Revenue beat(4)1
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)0.02%
Revenue beat(8)1
Avg Revenue beat(8)-0.54%
Revenue beat(12)2
Avg Revenue beat(12)-0.2%
Revenue beat(16)5
Avg Revenue beat(16)-0.08%
PT rev (1m)-5.21%
PT rev (3m)-13.86%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-2.77%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.79 | ||
| Fwd PE | 23.34 | ||
| P/S | 6.65 | ||
| P/FCF | 20.27 | ||
| P/OCF | 19.25 | ||
| P/B | 4.12 | ||
| P/tB | 46.15 | ||
| EV/EBITDA | 21.19 |
EPS(TTM)9.03
EY3.88%
EPS(NY)9.98
Fwd EY4.29%
FCF(TTM)11.49
FCFY4.93%
OCF(TTM)12.1
OCFY5.19%
SpS35.01
BVpS56.52
TBVpS5.05
PEG (NY)2.46
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 10.13% | ||
| ROCE | 10.23% | ||
| ROIC | 8.53% | ||
| ROICexc | 10.5% | ||
| ROICexgc | 122.89% | ||
| OM | 20.23% | ||
| PM (TTM) | 16.35% | ||
| GM | 77.19% | ||
| FCFM | 32.81% |
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 18.92% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.49% | ||
| Profit Quality | 200.65% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.4 |
F-Score8
WACC10.91%
ROIC/WACC0.78
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)24.12%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%21.4%
EPS Next Y10.48%
EPS Next 2Y11.46%
EPS Next 3Y13.04%
EPS Next 5Y11.03%
Revenue 1Y (TTM)8.72%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.6%
Revenue Next Year7.56%
Revenue Next 2Y8.34%
Revenue Next 3Y9.15%
Revenue Next 5Y8.94%
EBIT growth 1Y27.79%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year35.67%
EBIT Next 3Y18.39%
EBIT Next 5Y12.18%
FCF growth 1Y30.91%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y27.93%
OCF growth 3Y29.7%
OCF growth 5Y24.76%