Salesforce, Inc.
Salesforce, Inc. Fundamental Analysis
Salesforce, Inc. (CRM.NE) shows moderate financial fundamentals with a PE ratio of 1.29, profit margin of 17.96%, and ROE of 12.45%. The company generates $717.6B in annual revenue with moderate year-over-year growth of 8.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CRM.NE's fundamental strength across five key dimensions:
Efficiency Score
WeakCRM.NE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCRM.NE trades at attractive valuation levels.
Growth Score
ExcellentCRM.NE delivers strong and consistent growth momentum.
Financial Health Score
ModerateCRM.NE shows balanced financial health with some risks.
Profitability Score
ModerateCRM.NE maintains healthy but balanced margins.
Key Financial Metrics
Is CRM.NE Expensive or Cheap?
P/E Ratio
CRM.NE trades at 1.29 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CRM.NE's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Salesforce, Inc. at 0.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.91 times EBITDA. This signals the market has high growth expectations.
How Well Does CRM.NE Make Money?
Net Profit Margin
For every $100 in sales, Salesforce, Inc. keeps $17.96 as profit after all expenses.
Operating Margin
Core operations generate 21.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.45 in profit for every $100 of shareholder equity.
ROA
Salesforce, Inc. generates $6.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Salesforce, Inc. generates strong operating cash flow of $277.86B, reflecting robust business health.
Free Cash Flow
Salesforce, Inc. generates strong free cash flow of $266.55B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $16.57 in free cash annually.
FCF Yield
CRM.NE converts 9.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How CRM.NE Stacks Against Its Sector Peers
| Metric | CRM.NE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.29 | 34.22 | Better (Cheaper) |
| ROE | 12.45% | 1033.00% | Weak |
| Net Margin | 17.96% | -48116.00% (disorted) | Strong |
| Debt/Equity | 0.29 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 0.70 | 5.66 | Weak Liquidity |
| ROA | 6.72% | -288969.00% (disorted) | Weak |
CRM.NE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Salesforce, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.99%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
4138.29%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
160.49%
Industry Style: Growth, Innovation, High Beta
High Growth