NYSE:CRM

Stock Analysis Report

Executive Summary

salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management worldwide.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has salesforce.com's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

CRM

-3.0%

US Software

0.4%

US Market


1 Year Return

8.9%

CRM

23.8%

US Software

11.4%

US Market

Return vs Industry: CRM underperformed the US Software industry which returned 23.8% over the past year.

Return vs Market: CRM matched the US Market which returned 11.4% over the past year.


Shareholder returns

CRMIndustryMarket
7 Day-1.3%-3.0%0.4%
30 Day-6.2%-3.1%0.3%
90 Day-8.9%-9.0%-1.2%
1 Year8.9%8.9%25.6%23.8%13.9%11.4%
3 Year93.6%93.6%110.3%101.8%47.2%37.6%
5 Year138.0%138.0%159.3%140.5%62.4%44.6%

Price Volatility Vs. Market

How volatile is salesforce.com's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is salesforce.com undervalued compared to its fair value and its price relative to the market?

117.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CRM ($145.13) is trading above our estimate of fair value ($123.62)

Significantly Below Fair Value: CRM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CRM is poor value based on its PE Ratio (117.6x) compared to the Software industry average (44.8x).

PE vs Market: CRM is poor value based on its PE Ratio (117.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CRM is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: CRM is overvalued based on its PB Ratio (6.6x) compared to the US Software industry average (5.2x).


Next Steps

Future Growth

How is salesforce.com forecast to perform in the next 1 to 3 years based on estimates from 38 analysts?

39.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRM's forecast earnings growth (39.8% per year) is above the savings rate (2.7%).

Earnings vs Market: CRM's earnings (39.8% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CRM's revenue (17.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CRM's revenue (17.9% 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 (14.7%).


Next Steps

Past Performance

How has salesforce.com performed over the past 5 years?

72.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CRM has become profitable over the past 5 years, growing earnings by 72.5% per year.

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 (-0.6%) over the past year, making it difficult to compare to the Software industry average (23%).


Return on Equity

High ROE: CRM's Return on Equity (5.5%) is considered low.


Return on Assets

ROA vs Industry: CRM's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: CRM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is salesforce.com's financial position?


Financial Position Analysis

Short Term Liabilities: CRM's short term assets ($9.9B) do not cover its short term liabilities ($10.2B)

Long Term Liabilities: CRM's short term assets (9.9B) exceeds its long term liabilities (6.0B)


Debt to Equity History and Analysis

Debt Level: CRM's debt to equity ratio (17.3%) is considered satisfactory

Reducing Debt: CRM's debt to equity ratio has reduced from 48.2% to 17.3% over the past 5 years.

Debt Coverage: CRM's debt is well covered by operating cash flow (130.3%).

Interest Coverage: CRM's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet

Inventory Level: CRM has a low level of unsold assets or inventory.

Debt Coverage by Assets: CRM's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

What is salesforce.com's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CRM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CRM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

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.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CRM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of salesforce.com's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Marc Benioff (54yo)

1.2yrs

Tenure

US$28,391,846

Compensation

Mr. Marc R. Benioff Co-Founded Salesforce.com, Inc. in February 1999 and has been its Co-Chief Executive Officer since August 7, 2018 and was its Chief Executive Officer since November 2001 until August 7, ...


CEO Compensation Analysis

Compensation vs. Market: Marc has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Marc's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.2yrs

Average Tenure

54yo

Average Age

Experienced Management: CRM's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: CRM's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: CRM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$214,94903 Sep 19
Neelie Kroes
EntityIndividual
Shares1,400
Max PriceUS$153.54
SellUS$3,891,73303 Sep 19
Sanford Robertson
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares25,000
Max PriceUS$155.67
SellUS$201,91229 May 19
Parker Harris
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares1,315
Max PriceUS$153.55
SellUS$295,76127 Mar 19
Bret Taylor
EntityIndividual
Role
Co-President
President & Chief Product Officer
Shares1,864
Max PriceUS$158.67
SellUS$18,985,16519 Dec 18
Marc Benioff
EntityIndividual
Role
Co-Chief Executive Officer
Co-Founder
Shares142,472
Max PriceUS$133.29

Ownership Breakdown


Management Team

  • Keith Block (58yo)

    Co-CEO & Director

    • Tenure: 6.3yrs
    • Compensation: US$16.96m
  • Marc Benioff (54yo)

    Co-Founder

    • Tenure: 1.2yrs
    • Compensation: US$28.39m
  • Parker Harris (52yo)

    Co-Founder

    • Tenure: 1.2yrs
    • Compensation: US$12.00m
  • Alex Dayon (51yo)

    President & Chief Strategy Officer

    • Tenure: 3.7yrs
    • Compensation: US$1.80m
  • Mark Hawkins (60yo)

    President & CFO

    • Tenure: 2.2yrs
    • Compensation: US$9.81m
  • Bret Taylor (39yo)

    President & Chief Product Officer

    • Tenure: 1.9yrs
    • Compensation: US$11.82m
  • Joe Allanson (55yo)

    Chief Accounting Officer

    • Tenure: 5.7yrs
  • John Cummings

    Senior Vice President of Investor Relations

    • Tenure: 8.2yrs
  • Brent Hyder (54yo)

    President & Chief People Officer

    • Tenure: 0yrs
  • Srini Tallapragada (49yo)

    President of Technology

    • Tenure: 1.3yrs
    • Compensation: US$12.31m

Board Members

  • Sandy Robertson (87yo)

    Lead Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$596.29k
  • Keith Block (58yo)

    Co-CEO & Director

    • Tenure: 6.3yrs
    • Compensation: US$16.96m
  • Craig Conway (64yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$566.29k
  • Maynard Webb (63yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$566.29k
  • Alan Hassenfeld (70yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$546.29k
  • Marc Benioff (54yo)

    Co-Founder

    • Tenure: 1.2yrs
    • Compensation: US$28.39m
  • Parker Harris (52yo)

    Co-Founder

    • Tenure: 1.2yrs
    • Compensation: US$12.00m
  • John Roos (64yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$581.29k
  • Robin Washington (56yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$586.29k
  • Susan Wojcicki (50yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$546.29k

Company Information

salesforce.com, inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: salesforce.com, inc.
  • Ticker: CRM
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$127.039b
  • Shares outstanding: 875.35m
  • Website: https://www.salesforce.com

Number of Employees


Location

  • salesforce.com, inc.
  • Salesforce Tower
  • 3rd Floor
  • San Francisco
  • California
  • 94105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRMNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2004
FOODB (Deutsche Boerse AG)YesCommon StockDEEURJun 2004
FOOXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 2004
CRMSWX (SIX Swiss Exchange)YesCommon StockCHCHFJun 2004
0QYJLSE (London Stock Exchange)YesCommon StockGBUSDJun 2004
CRM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2004
CRMWBAG (Wiener Boerse AG)YesCommon StockATEURJun 2004
SSFO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1/2 COM USD0.001BRBRLApr 2016
CRMBASE (Buenos Aires Stock Exchange)CEDEAR EACH 6 REP 1 COM USD0.001ARARSApr 2019

Biography

salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management worldwide. The company offers Sales Cloud to store data, monitor leads and progress, fore ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:51
End of Day Share Price2019/10/23 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.