SALESFORCE INC (FOO.DE) Stock Fundamental Analysis
FRA:FOO - US79466L3024 - Common Stock
219.65 EUR
+2.7 (+1.24%)
FOO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 108 industry peers in the Software industry. FOO has an excellent profitability rating, but there are some minor concerns on its financial health. FOO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FOO was profitable.
In the past year FOO had a positive cash flow from operations.
In the past 5 years FOO has always been profitable.
Each year in the past 5 years FOO had a positive operating cash flow.
1.2 Ratios
FOO has a better Return On Assets (6.29%) than 65.74% of its industry peers.
The Return On Equity of FOO (10.23%) is better than 60.19% of its industry peers.
The Return On Invested Capital of FOO (8.87%) is better than 70.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FOO is significantly below the industry average of 12.57%.
The last Return On Invested Capital (8.87%) for FOO is above the 3 year average (5.83%), which is a sign of increasing profitability.
| 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
The Profit Margin of FOO (16.08%) is better than 71.30% of its industry peers.
In the last couple of years the Profit Margin of FOO has grown nicely.
The Operating Margin of FOO (20.50%) is better than 77.78% of its industry peers.
FOO's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 77.34%, FOO is doing good in the industry, outperforming 61.11% of the companies in the same industry.
FOO'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
FOO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FOO has been reduced compared to 1 year ago.
FOO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FOO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.75 indicates that FOO is not in any danger for bankruptcy at the moment.
FOO has a better Altman-Z score (4.75) than 61.11% of its industry peers.
The Debt to FCF ratio of FOO is 0.67, which is an excellent value as it means it would take FOO, only 0.67 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FOO (0.67) is better than 83.33% 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.
The Debt to Equity ratio of FOO (0.14) is better than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 4.75 |
ROIC/WACC0.8
WACC11.13%
2.3 Liquidity
A Current Ratio of 1.07 indicates that FOO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.07, FOO is doing worse than 60.19% of the companies in the same industry.
A Quick Ratio of 1.07 indicates that FOO should not have too much problems paying its short term obligations.
FOO's Quick ratio of 1.07 is in line compared to the rest of the industry. FOO outperforms 40.74% of its industry peers.
| 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.
FOO 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, FOO 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
FOO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.04% yearly.
FOO 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
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.
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
FOO is valuated rather expensively with a Price/Earnings ratio of 24.79.
80.56% of the companies in the same industry are more expensive than FOO, based on the Price/Earnings ratio.
FOO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.05, which indicates a rather expensive current valuation of FOO.
74.07% of the companies in the same industry are more expensive than FOO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.76. FOO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.79 | ||
| Fwd PE | 20.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FOO indicates a somewhat cheap valuation: FOO is cheaper than 62.04% of the companies listed in the same industry.
FOO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FOO is cheaper than 78.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.36 | ||
| EV/EBITDA | 19.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FOO does not grow enough to justify the current Price/Earnings ratio.
FOO has a very decent profitability rating, which may justify a higher PE ratio.
FOO's earnings are expected to grow with 12.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.04
PEG (5Y)0.89
EPS Next 2Y11.95%
EPS Next 3Y12.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, FOO is not a good candidate for dividend investing.
FOO's Dividend Yield is a higher than the industry average which is at 1.76.
Compared to an average S&P500 Dividend Yield of 2.32, FOO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
25.00% of the earnings are spent on dividend by FOO. This is a low number and sustainable payout ratio.
DP25%
EPS Next 2Y11.95%
EPS Next 3Y12.55%
FRA:FOO (9/1/2025, 5:29:56 PM)
219.65
+2.7 (+1.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.98%
Inst Owner ChangeN/A
Ins Owners2.52%
Ins Owner ChangeN/A
Market Cap209.99B
Analysts79.31
Price Target305.07 (38.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.36
Dividend Growth(5Y)N/A
DP25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-2.35%
PT rev (3m)-7.77%
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 | 24.79 | ||
| Fwd PE | 20.05 | ||
| P/S | 6.34 | ||
| P/FCF | 19.36 | ||
| P/OCF | 18.38 | ||
| P/B | 4.04 | ||
| P/tB | 45.74 | ||
| EV/EBITDA | 19.94 |
EPS(TTM)8.86
EY4.03%
EPS(NY)10.96
Fwd EY4.99%
FCF(TTM)11.35
FCFY5.17%
OCF(TTM)11.95
OCFY5.44%
SpS34.63
BVpS54.43
TBVpS4.8
PEG (NY)2.04
PEG (5Y)0.89
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 | 4.75 |
F-Score8
WACC11.13%
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%