SALESFORCE INC (FOO.DE) Stock Fundamental Analysis
Europe - FRA:FOO - US79466L3024 - Common Stock
209.7 EUR
-2.4 (-1.13%)
FOO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 111 industry peers in the Software industry. Both the health and profitability get an excellent rating, making FOO a very profitable company, without any liquidiy or solvency issues. FOO is not valued too expensively and it also shows a decent growth rate. These ratings could make FOO a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
FOO had positive earnings in the past year.
FOO had a positive operating cash flow in the past year.
In the past 5 years FOO has always 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 6.83%, FOO is doing good in the industry, outperforming 63.96% of the companies in the same industry.
FOO's Return On Equity of 10.86% is in line compared to the rest of the industry. FOO outperforms 58.56% of its industry peers.
With a decent Return On Invested Capital value of 9.32%, FOO is doing good in the industry, outperforming 72.97% of the companies in the same industry.
FOO had an Average Return On Invested Capital over the past 3 years of 5.83%. This is significantly below the industry average of 12.56%.
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 Profit Margin of 16.87%. This is in the better half of the industry: FOO outperforms 72.97% of its industry peers.
In the last couple of years the Profit Margin of FOO has grown nicely.
Looking at the Operating Margin, with a value of 21.22%, FOO is in the better half of the industry, outperforming 79.28% of the companies in the same industry.
FOO's Operating Margin has improved in the last couple of years.
The Gross Margin of FOO (77.65%) is better than 65.77% 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
FOO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FOO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FOO has been increased compared to 5 years ago.
FOO has a better debt/assets ratio than last year.
2.2 Solvency
FOO has an Altman-Z score of 4.89. This indicates that FOO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.89, FOO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.68, FOO belongs to the top of the industry, outperforming 82.88% 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 69.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 4.89 |
ROIC/WACC0.84
WACC11.07%
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 41.44% of its industry peers.
FOO has a Quick Ratio of 1.12. 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 Quick ratio value of 1.12, FOO perfoms like the industry average, outperforming 44.14% of the companies in the same 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.
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 quite strong growth in Revenue. The Revenue has grown by 8.33% in the last year.
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)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 12.19% on average over the next years. This is quite good.
Based on estimates for the next years, FOO will show a quite strong growth in Revenue. The Revenue will grow by 9.26% on average per year.
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
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
With a Price/Earnings ratio of 22.87, FOO is valued on the expensive side.
Based on the Price/Earnings ratio, FOO is valued a bit cheaper than 78.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.40. FOO is around the same levels.
The Price/Forward Earnings ratio is 18.99, which indicates a rather expensive current valuation of FOO.
Based on the Price/Forward Earnings ratio, FOO is valued a bit cheaper than the industry average as 74.77% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, FOO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 18.99 |
4.2 Price Multiples
60.36% of the companies in the same industry are more expensive than FOO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FOO is valued a bit cheaper than the industry average as 79.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.61 | ||
| EV/EBITDA | 19.03 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FOO may justify a higher PE ratio.
A more expensive valuation may be justified as FOO's earnings are expected to grow with 12.76% in the coming years.
PEG (NY)1.79
PEG (5Y)0.83
EPS Next 2Y12.34%
EPS Next 3Y12.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, FOO is not a good candidate for dividend investing.
FOO's Dividend Yield is a higher than the industry average which is at 2.10.
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
FOO pays out 23.50% of its income as dividend. This is a sustainable payout ratio.
DP23.5%
EPS Next 2Y12.34%
EPS Next 3Y12.76%
FRA:FOO (10/17/2025, 7:00:00 PM)
209.7
-2.4 (-1.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.17%
Inst Owner ChangeN/A
Ins Owners2.53%
Ins Owner ChangeN/A
Market Cap199.63B
Analysts79.66
Price Target291.84 (39.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.37
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)-4.34%
PT rev (3m)-7.15%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 18.99 | ||
| P/S | 5.89 | ||
| P/FCF | 18.61 | ||
| P/OCF | 17.66 | ||
| P/B | 3.79 | ||
| P/tB | 37.38 | ||
| EV/EBITDA | 19.03 |
EPS(TTM)9.17
EY4.37%
EPS(NY)11.04
Fwd EY5.26%
FCF(TTM)11.27
FCFY5.37%
OCF(TTM)11.87
OCFY5.66%
SpS35.62
BVpS55.3
TBVpS5.61
PEG (NY)1.79
PEG (5Y)0.83
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 | 4.89 |
F-Score9
WACC11.07%
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%