| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 4/6 |
| Past Performance | 1/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
CRM Stock Overview
Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide.
Rewards
Risk Analysis
Salesforce Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$168.20 |
| 52 Week High | US$311.75 |
| 52 Week Low | US$154.55 |
| Beta | 1.16 |
| 1 Month Change | -9.04% |
| 3 Month Change | -19.96% |
| 1 Year Change | -32.23% |
| 3 Year Change | 10.07% |
| 5 Year Change | 90.06% |
| Change since IPO | 3,811.63% |
Recent News & Updates
Salesforce: SaaS Juggernaut With Roaring Financials
Salesforce is a market leader in Customer Relationship Management software for Sales and Marketing. They have acquired over 62 organizations in the past few years, with a value of nearly $50 Billion. Salesforce is still growing rapidly and generated first quarter revenue of $7.41 Billion, up 24% year over year.
Salesforce (NYSE:CRM) Seems To Use Debt Quite Sensibly
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Shareholder Returns
| CRM | US Software | US Market | |
|---|---|---|---|
| 7D | -7.2% | -3.1% | -2.2% |
| 1Y | -32.2% | -23.6% | -19.1% |
Return vs Industry: CRM underperformed the US Software industry which returned -23.6% over the past year.
Return vs Market: CRM underperformed the US Market which returned -21.2% over the past year.
Price Volatility
| CRM volatility | |
|---|---|
| CRM Average Weekly Movement | 7.8% |
| Software Industry Average Movement | 11.0% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.3% |
Stable Share Price: CRM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: CRM's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1999 | 73,541 | Marc Benioff | https://www.salesforce.com |
Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their customers. The company’s service offerings include Sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and relationship intelligence, and deliver quotes, contracts, and invoices; and Service that enables companies to deliver trusted and highly personalized customer service and support at scale.
Salesforce Fundamentals Summary
| CRM fundamental statistics | |
|---|---|
| Market Cap | US$167.36b |
| Earnings (TTM) | US$1.00b |
| Revenue (TTM) | US$27.94b |
166.9x
P/E Ratio6.0x
P/S RatioIs CRM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CRM income statement (TTM) | |
|---|---|
| Revenue | US$27.94b |
| Cost of Revenue | US$7.52b |
| Gross Profit | US$20.42b |
| Other Expenses | US$19.42b |
| Earnings | US$1.00b |
Last Reported Earnings
Apr 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.01 |
| Gross Margin | 73.10% |
| Net Profit Margin | 3.59% |
| Debt/Equity Ratio | 18.0% |
How did CRM perform over the long term?
See historical performance and comparisonValuation
Is CRM undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CRM?
Other financial metrics that can be useful for relative valuation.
| What is CRM's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$167.36b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 6x |
| Enterprise Value/EBITDA | 62.9x |
| PEG Ratio | 4.1x |
Price to Sales Ratio vs Peers
How does CRM's PS Ratio compare to its peers?
| CRM PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 12x | ||
ADBE Adobe | 10.3x | 11.8% | US$172.4b |
INTU Intuit | 8.5x | 13.8% | US$109.5b |
TEAM Atlassian | 19.3x | 24.2% | US$50.2b |
SNPS Synopsys | 9.7x | 11.2% | US$46.1b |
CRM Salesforce | 6x | 14.7% | US$167.4b |
Price-To-Sales vs Peers: CRM is good value based on its Price-To-Sales Ratio (6x) compared to the peer average (12x).
Price to Earnings Ratio vs Industry
How does CRM's PE Ratio compare vs other companies in the US Software Industry?
Price-To-Sales vs Industry: CRM is expensive based on its Price-To-Sales Ratio (6x) compared to the US Software industry average (4.5x)
Price to Sales Ratio vs Fair Ratio
What is CRM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 6x |
| Fair PS Ratio | 17.6x |
Price-To-Sales vs Fair Ratio: CRM is good value based on its Price-To-Sales Ratio (6x) compared to the estimated Fair Price-To-Sales Ratio (17.6x).
Share Price vs Fair Value
What is the Fair Price of CRM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CRM ($168.2) is trading below our estimate of fair value ($362.52)
Significantly Below Fair Value: CRM is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: CRM is poor value based on its PEG Ratio (4.1x)
Discover undervalued companies
Future Growth
How is Salesforce forecast to perform in the next 1 to 3 years based on estimates from 45 analysts?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
40.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CRM's forecast earnings growth (40.4% per year) is above the savings rate (1.9%).
Earnings vs Market: CRM's earnings (40.4% per year) are forecast to grow faster than the US market (13.6% per year).
High Growth Earnings: CRM's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CRM's revenue (14.7% per year) is forecast to grow faster than the US market (8.2% per year).
High Growth Revenue: CRM's revenue (14.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CRM's Return on Equity is forecast to be low in 3 years time (9.8%).
Discover growth companies
Past Performance
How has Salesforce performed over the past 5 years?
Past Performance Score
1/6Past Performance Score 1/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
37.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CRM has a large one-off gain of $876.0M impacting its April 30 2022 financial results.
Growing Profit Margin: CRM's current net profit margins (3.6%) are lower than last year (19.9%).
Past Earnings Growth Analysis
Earnings Trend: CRM's earnings have grown significantly by 37.4% per year over the past 5 years.
Accelerating Growth: CRM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CRM had negative earnings growth (-77.4%) over the past year, making it difficult to compare to the Software industry average (26.8%).
Return on Equity
High ROE: CRM's Return on Equity (1.7%) is considered low.
Discover strong past performing companies
Financial Health
How is Salesforce's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: CRM's short term assets ($20.4B) exceed its short term liabilities ($19.9B).
Long Term Liabilities: CRM's short term assets ($20.4B) exceed its long term liabilities ($14.2B).
Debt to Equity History and Analysis
Debt Level: CRM has more cash than its total debt.
Reducing Debt: CRM's debt to equity ratio has reduced from 22.9% to 18% over the past 5 years.
Debt Coverage: CRM's debt is well covered by operating cash flow (60.8%).
Interest Coverage: CRM's interest payments on its debt are not well covered by EBIT (1x coverage).
Balance Sheet
Discover healthy companies
Dividend
What is Salesforce current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CRM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CRM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CRM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CRM's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as CRM has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Marc Benioff (57 yo)
23.42yrs
Tenure
US$28,602,112
Compensation
Mr. Marc R. Benioff Co-Founded Salesforce.com, Inc. in February 1999 and had been its Chief Executive Officer February 2020 until November 30, 2021 and serves as its Co-Chief Executive Officer since Novemb...
CEO Compensation Analysis
Compensation vs Market: Marc's total compensation ($USD28.60M) is above average for companies of similar size in the US market ($USD13.34M).
Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: CRM's management team is considered experienced (2.2 years average tenure).
Board Members
Experienced Board: CRM's board of directors are considered experienced (8.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CRM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.5%.
Top Shareholders
Company Information
Salesforce, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Salesforce, Inc.
- Ticker: CRM
- Exchange: NYSE
- Founded: 1999
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$167.359b
- Shares outstanding: 995.00m
- Website: https://www.salesforce.com
Number of Employees
Location
- Salesforce, Inc.
- Salesforce Tower
- 3rd Floor
- San Francisco
- California
- 94105
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/07/04 00:00 |
| End of Day Share Price | 2022/07/01 00:00 |
| Earnings | 2022/04/30 |
| Annual Earnings | 2022/01/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.