SALESFORCE INC (FOO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:FOO - US79466L3024 - Common Stock
176.52 EUR
-15.9 (-8.26%)
We assign a fundamental rating of 6 out of 10 to FOO. FOO was compared to 114 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
- 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.
- Each year in the past 5 years FOO had a positive operating cash flow.
1.2 Ratios
- FOO has a better Return On Assets (7.59%) than 63.16% of its industry peers.
- FOO has a Return On Equity (12.03%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 10.05%, FOO is in the better half of the industry, outperforming 70.18% 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 13.49%.
- The last Return On Invested Capital (10.05%) for FOO is above the 3 year average (5.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 12.03% | ||
| ROIC | 10.05% |
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
- Looking at the Profit Margin, with a value of 17.91%, FOO is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
- FOO's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 22.03%, FOO is in the better half of the industry, outperforming 78.07% of the companies in the same industry.
- In the last couple of years the Operating Margin of FOO has grown nicely.
- FOO has a Gross Margin of 77.73%. This is in the better half of the industry: FOO outperforms 64.04% of its industry peers.
- 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 | 22.03% | ||
| PM (TTM) | 17.91% | ||
| GM | 77.73% |
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.
- Compared to 1 year ago, FOO has less shares outstanding
- Compared to 5 years ago, FOO has more shares outstanding
- Compared to 1 year ago, FOO has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.78 indicates that FOO is not in any danger for bankruptcy at the moment.
- FOO's Altman-Z score of 4.78 is fine compared to the rest of the industry. FOO outperforms 67.54% of its industry peers.
- FOO has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.65, FOO belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
- FOO has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.14, FOO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 4.78 |
ROIC/WACC0.92
WACC10.93%
2.3 Liquidity
- FOO has a Current Ratio of 0.98. This is a bad value and indicates that FOO is not financially healthy enough and could expect problems in meeting its short term obligations.
- FOO has a Current ratio of 0.98. This is in the lower half of the industry: FOO underperforms 72.81% of its industry peers.
- A Quick Ratio of 0.98 indicates that FOO may have some problems paying its short term obligations.
- FOO has a Quick ratio of 0.98. This is in the lower half of the industry: FOO underperforms 71.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- FOO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.76%, which is quite good.
- Measured over the past years, FOO shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.71% on average per year.
- The Revenue has grown by 8.41% in the past year. This is quite good.
- The Revenue has been growing by 17.25% on average over the past years. This is quite good.
EPS 1Y (TTM)18.76%
EPS 3Y28.52%
EPS 5Y27.71%
EPS Q2Q%34.85%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%8.63%
3.2 Future
- The Earnings Per Share is expected to grow by 14.75% on average over the next years. This is quite good.
- The Revenue is expected to grow by 9.51% on average over the next years. This is quite good.
EPS Next Y16.58%
EPS Next 2Y14%
EPS Next 3Y13.91%
EPS Next 5Y14.75%
Revenue Next Year9.34%
Revenue Next 2Y10.17%
Revenue Next 3Y9.88%
Revenue Next 5Y9.51%
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
- A Price/Earnings ratio of 18.35 indicates a rather 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 80.70% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, FOO is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 15.96, the valuation of FOO can be described as correct.
- Based on the Price/Forward Earnings ratio, FOO is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
- FOO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 15.96 |
4.2 Price Multiples
- FOO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FOO is cheaper than 63.16% of the companies in the same industry.
- FOO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FOO is cheaper than 81.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.6 | ||
| EV/EBITDA | 17.45 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 13.91% in the coming years.
PEG (NY)1.11
PEG (5Y)0.66
EPS Next 2Y14%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.73%, FOO is not a good candidate for dividend investing.
- The stock price of FOO dropped by -20.95% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 0.68, FOO pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.73, FOO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- FOO pays out 21.86% of its income as dividend. This is a sustainable payout ratio.
DP21.86%
EPS Next 2Y14%
EPS Next 3Y13.91%
SALESFORCE INC / FOO.DE FAQ
What is the fundamental rating for FOO stock?
ChartMill assigns a fundamental rating of 6 / 10 to FOO.DE.
Can you provide the valuation status for SALESFORCE INC?
ChartMill assigns a valuation rating of 6 / 10 to SALESFORCE INC (FOO.DE). This can be considered as Fairly Valued.
What is the profitability of FOO stock?
SALESFORCE INC (FOO.DE) has a profitability rating of 7 / 10.
What is the valuation of SALESFORCE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SALESFORCE INC (FOO.DE) is 18.35 and the Price/Book (PB) ratio is 3.35.
Is the dividend of SALESFORCE INC sustainable?
The dividend rating of SALESFORCE INC (FOO.DE) is 3 / 10 and the dividend payout ratio is 21.86%.