| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| 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$166.91 |
| 52 Week High | US$311.75 |
| 52 Week Low | US$154.64 |
| Beta | 1.15 |
| 1 Month Change | -11.88% |
| 3 Month Change | -19.13% |
| 1 Year Change | -23.32% |
| 3 Year Change | 7.98% |
| 5 Year Change | 90.97% |
| Change since IPO | 3,781.63% |
Recent News & Updates
Salesforce, Inc.'s (NYSE:CRM) Intrinsic Value Is Potentially 59% Above Its Share Price
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Salesforce, Inc...
Salesforce: Hard To Find A Better Investment
Salesforce is #1 CRM in the world for the eighth year in a row with an increasingly overwhelming dominance. The structure of this business model is very advantageous, especially in the expansionary phases of the economic cycle. From the first day Salesforce was born, Marc Benioff had decided that profitability and philanthropy would be the main pivots of this company. According to the parameters entered, Salesforce's fair value is $304.90 while the current price is $175.
Shareholder Returns
| CRM | US Software | US Market | |
|---|---|---|---|
| 7D | -1.6% | -3.8% | -2.5% |
| 1Y | -23.3% | -10.3% | -10.4% |
Return vs Industry: CRM underperformed the US Software industry which returned -10.3% over the past year.
Return vs Market: CRM underperformed the US Market which returned -10.4% over the past year.
Price Volatility
| CRM volatility | |
|---|---|
| CRM Average Weekly Movement | 6.9% |
| Software Industry Average Movement | 11.4% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: CRM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: CRM's weekly volatility (7%) 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$165.89b |
| Earnings (TTM) | US$1.44b |
| Revenue (TTM) | US$26.49b |
114.9x
P/E Ratio6.3x
P/S RatioIs CRM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CRM income statement (TTM) | |
|---|---|
| Revenue | US$26.49b |
| Cost of Revenue | US$7.03b |
| Gross Profit | US$19.47b |
| Other Expenses | US$18.02b |
| Earnings | US$1.44b |
Last Reported Earnings
Jan 31, 2022
Next Earnings Date
May 31, 2022
| Earnings per share (EPS) | 1.45 |
| Gross Margin | 73.48% |
| Net Profit Margin | 5.45% |
| Debt/Equity Ratio | 18.2% |
How did CRM perform over the long term?
See historical performance and comparisonValuation
Is Salesforce undervalued compared to its fair value and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
37.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CRM ($166.91) is trading below our estimate of fair value ($265.33)
Significantly Below Fair Value: CRM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CRM is poor value based on its PE Ratio (114.9x) compared to the US Software industry average (41.9x).
PE vs Market: CRM is poor value based on its PE Ratio (114.9x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: CRM is poor value based on its PEG Ratio (7.8x)
Price to Book Ratio
PB vs Industry: CRM is good value based on its PB Ratio (2.9x) compared to the US Software industry average (3.6x).
Future Growth
How is Salesforce forecast to perform in the next 1 to 3 years based on estimates from 46 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
14.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CRM's forecast earnings growth (14.8% per year) is above the savings rate (1.9%).
Earnings vs Market: CRM's earnings (14.8% per year) are forecast to grow faster than the US market (12.6% per year).
High Growth Earnings: CRM's earnings are forecast to grow, but not significantly.
Revenue vs Market: CRM's revenue (14.4% per year) is forecast to grow faster than the US market (8% per year).
High Growth Revenue: CRM's revenue (14.4% 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 (10.5%).
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
43.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CRM has a large one-off gain of $1.2B impacting its January 31 2022 financial results.
Growing Profit Margin: CRM's current net profit margins (5.5%) are lower than last year (19.2%).
Past Earnings Growth Analysis
Earnings Trend: CRM's earnings have grown significantly by 43.8% 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 (-64.5%) over the past year, making it difficult to compare to the Software industry average (29.6%).
Return on Equity
High ROE: CRM's Return on Equity (2.5%) is considered low.
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 ($22.9B) exceed its short term liabilities ($21.8B).
Long Term Liabilities: CRM's short term assets ($22.9B) exceed its long term liabilities ($15.3B).
Debt to Equity History and Analysis
Debt Level: CRM's net debt to equity ratio (0.1%) is considered satisfactory.
Reducing Debt: CRM's debt to equity ratio has reduced from 26.7% to 18.2% over the past 5 years.
Debt Coverage: CRM's debt is well covered by operating cash flow (56.6%).
Interest Coverage: CRM's interest payments on its debt are not well covered by EBIT (2.7x coverage).
Balance Sheet
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
Future Dividend Coverage
0.024%
Forecast Dividend Yield
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.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Marc Benioff (56 yo)
23.25yrs
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 ($USD13.26M).
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 years average tenure).
Board Members
Experienced Board: CRM's board of directors are considered experienced (8.7 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 7.8%.
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$165.895b
- Shares outstanding: 993.92m
- 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 | 2022/05/15 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2022/01/31 |
| 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.