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 99 industry peers in the Software industry. While FOO has a great profitability rating, there are some minor concerns on its financial health. FOO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FOO was profitable.
FOO had a positive operating cash flow in the past year.
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
The Return On Assets of FOO (6.29%) is better than 68.69% of its industry peers.
The Return On Equity of FOO (10.23%) is better than 62.63% of its industry peers.
The Return On Invested Capital of FOO (8.87%) is better than 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FOO is below the industry average of 10.83%.
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
FOO has a Profit Margin of 16.08%. This is in the better half of the industry: FOO outperforms 75.76% 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 20.50%, FOO is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
FOO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 77.34%, FOO is in the better half of the industry, outperforming 65.66% 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
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.
FOO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.84 indicates that FOO is not in any danger for bankruptcy at the moment.
FOO has a Altman-Z score of 4.84. This is in the better half of the industry: FOO outperforms 63.64% of its industry peers.
FOO has a debt to FCF ratio of 0.67. This is a very positive value and a sign of high solvency as it would only need 0.67 years to pay back of all of its debts.
FOO has a better Debt to FCF ratio (0.67) than 84.85% 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.
FOO has a Debt to Equity ratio of 0.14. This is in the better half of the industry: FOO outperforms 73.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 4.84 |
ROIC/WACC0.83
WACC10.63%
2.3 Liquidity
A Current Ratio of 1.07 indicates that FOO should not have too much problems paying its short term obligations.
FOO's Current ratio of 1.07 is on the low side compared to the rest of the industry. FOO is outperformed by 60.61% of its industry peers.
FOO has a Quick Ratio of 1.07. This is a normal value and indicates that FOO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, FOO is in line with its industry, outperforming 40.40% of the companies in the same industry.
| 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.
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.
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
Based on estimates for the next years, FOO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.04% on average per year.
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 2Y11.96%
EPS Next 3Y12.58%
EPS Next 5Y12.04%
Revenue Next Year8.57%
Revenue Next 2Y8.83%
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 quite expensively with a Price/Earnings ratio of 25.18.
Based on the Price/Earnings ratio, FOO is valued cheaper than 84.85% of the companies in the same industry.
FOO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.52.
With a Price/Forward Earnings ratio of 20.36, FOO is valued on the expensive side.
FOO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FOO is cheaper than 77.78% of the companies in the same industry.
FOO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 20.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOO is valued a bit cheaper than 62.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FOO is valued cheaper than 80.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.66 | ||
| EV/EBITDA | 20.47 |
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.
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 12.58% in the coming years.
PEG (NY)2.08
PEG (5Y)0.91
EPS Next 2Y11.96%
EPS Next 3Y12.58%
5. Dividend
5.1 Amount
FOO has a yearly dividend return of 0.64%, which is pretty low.
FOO's Dividend Yield is a higher than the industry average which is at 2.06.
With a Dividend Yield of 0.64, FOO pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FOO pays out 25.00% of its income as dividend. This is a sustainable payout ratio.
DP25%
EPS Next 2Y11.96%
EPS Next 3Y12.58%
FRA:FOO (7/14/2025, 5:26:50 PM)
222.625
+0.72 (+0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.85%
Inst Owner ChangeN/A
Ins Owners2.52%
Ins Owner ChangeN/A
Market Cap212.83B
Analysts79.67
Price Target314.31 (41.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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)-0.83%
PT rev (3m)-9.92%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)1.69%
EPS NY rev (1m)1.49%
EPS NY rev (3m)1.39%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 20.36 | ||
| P/S | 6.44 | ||
| P/FCF | 19.66 | ||
| P/OCF | 18.67 | ||
| P/B | 4.1 | ||
| P/tB | 46.46 | ||
| EV/EBITDA | 20.47 |
EPS(TTM)8.84
EY3.97%
EPS(NY)10.93
Fwd EY4.91%
FCF(TTM)11.32
FCFY5.09%
OCF(TTM)11.93
OCFY5.36%
SpS34.55
BVpS54.32
TBVpS4.79
PEG (NY)2.08
PEG (5Y)0.91
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 | 4.84 |
F-Score8
WACC10.63%
ROIC/WACC0.83
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 2Y11.96%
EPS Next 3Y12.58%
EPS Next 5Y12.04%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y12.67%
Revenue growth 5Y17.25%
Sales Q2Q%7.62%
Revenue Next Year8.57%
Revenue Next 2Y8.83%
Revenue Next 3Y9.25%
Revenue Next 5Y9.62%
EBIT growth 1Y20.01%
EBIT growth 3Y133.52%
EBIT growth 5Y75.31%
EBIT Next Year35.67%
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%