SALESFORCE INC (FOO.DE) Stock Fundamental Analysis
Europe - FRA:FOO - US79466L3024 - Common Stock
207.85 EUR
-1.85 (-0.88%)
We assign a fundamental rating of 6 out of 10 to FOO. FOO was compared to 107 industry peers in the Software industry. FOO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FOO has a correct valuation and a medium growth rate. With these ratings, FOO could be worth investigating further for quality 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.
FOO had positive earnings in each of the past 5 years.
Each year in the past 5 years FOO had a positive operating cash flow.
1.2 Ratios
FOO has a better Return On Assets (6.83%) than 68.57% of its industry peers.
With a decent Return On Equity value of 10.86%, FOO is doing good in the industry, outperforming 62.86% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.32%, FOO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FOO is significantly below the industry average of 12.55%.
The last Return On Invested Capital (9.32%) for FOO 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
FOO has a better Profit Margin (16.87%) than 72.38% 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 21.22%, FOO is doing good in the industry, outperforming 77.14% of the companies in the same industry.
In the last couple of years the Operating Margin of FOO has grown nicely.
FOO has a better Gross Margin (77.65%) than 64.76% of its industry peers.
FOO'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FOO 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
FOO has an Altman-Z score of 4.84. This indicates that FOO is financially healthy and has little risk of bankruptcy at the moment.
FOO has a Altman-Z score of 4.84. This is in the better half of the industry: FOO outperforms 65.71% of its industry peers.
The Debt to FCF ratio of FOO is 0.68, which is an excellent value as it means it would take FOO, only 0.68 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.68, FOO belongs to the best of the industry, outperforming 83.81% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that FOO is not too dependend on debt financing.
FOO's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. FOO outperforms 70.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.84 |
ROIC/WACC0.85
WACC10.97%
2.3 Liquidity
A Current Ratio of 1.12 indicates that FOO should not have too much problems paying its short term obligations.
FOO's Current ratio of 1.12 is in line compared to the rest of the industry. FOO outperforms 44.76% of its industry peers.
A Quick Ratio of 1.12 indicates that FOO should not have too much problems paying its short term obligations.
The Quick ratio of FOO (1.12) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
FOO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.62%, which is quite good.
The Earnings Per Share has been growing by 27.71% on average over the past years. This is a very strong growth
Looking at the last year, FOO 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
The Earnings Per Share is expected to grow by 12.04% on average over the next years. This is quite good.
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 3Y12.86%
EPS Next 5Y12.04%
Revenue Next Year8.7%
Revenue Next 2Y8.86%
Revenue Next 3Y9%
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
The Price/Earnings ratio is 22.84, which indicates a rather expensive current 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 80.95% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. FOO is around the same levels.
Based on the Price/Forward Earnings ratio of 19.10, the valuation of FOO can be described as rather expensive.
77.14% 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 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 19.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOO is valued a bit cheaper than 60.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FOO is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.58 | ||
| EV/EBITDA | 18.78 |
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.
A more expensive valuation may be justified as FOO's earnings are expected to grow with 12.86% in the coming years.
PEG (NY)1.88
PEG (5Y)0.82
EPS Next 2Y11.95%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
FOO has a yearly dividend return of 0.68%, which is pretty low.
FOO's Dividend Yield is a higher than the industry average which is at 2.14.
With a Dividend Yield of 0.68, FOO pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
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 FOO. This is a low number and sustainable payout ratio.
DP23.5%
EPS Next 2Y11.95%
EPS Next 3Y12.86%
FRA:FOO (9/19/2025, 7:00:00 PM)
207.85
-1.85 (-0.88%)
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 Cap197.87B
Analysts79.66
Price Target289.74 (39.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.36
Dividend Growth(5Y)N/A
DP23.5%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-7.33%
PT rev (3m)-7.82%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)0.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 19.1 | ||
| P/S | 5.88 | ||
| P/FCF | 18.58 | ||
| P/OCF | 17.63 | ||
| P/B | 3.79 | ||
| P/tB | 37.33 | ||
| EV/EBITDA | 18.78 |
EPS(TTM)9.1
EY4.38%
EPS(NY)10.88
Fwd EY5.24%
FCF(TTM)11.19
FCFY5.38%
OCF(TTM)11.79
OCFY5.67%
SpS35.36
BVpS54.89
TBVpS5.57
PEG (NY)1.88
PEG (5Y)0.82
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 | 4.84 |
F-Score9
WACC10.97%
ROIC/WACC0.85
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 Y12.13%
EPS Next 2Y11.95%
EPS Next 3Y12.86%
EPS Next 5Y12.04%
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%
Revenue Next 5Y9.62%
EBIT growth 1Y20.59%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year36.84%
EBIT Next 3Y18.7%
EBIT Next 5Y15.41%
FCF growth 1Y65.28%
FCF growth 3Y33.02%
FCF growth 5Y27.52%
OCF growth 1Y56.77%
OCF growth 3Y29.7%
OCF growth 5Y24.76%