NYSE:CRM

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless 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

Stable Share Price: CRM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

CRM

3.3%

US Software

7.2%

US Market


1 Year Return

-6.6%

CRM

11.0%

US Software

-10.4%

US Market

Return vs Industry: CRM underperformed the US Software industry which returned 6.4% over the past year.

Return vs Market: CRM exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

CRMIndustryMarket
7 Day-2.5%3.3%7.2%
30 Day-12.1%-7.4%-12.6%
90 Day-7.9%-2.8%-19.4%
1 Year-6.6%-6.6%12.2%11.0%-8.5%-10.4%
3 Year80.6%80.6%109.9%100.6%15.8%8.3%
5 Year119.7%119.7%177.4%157.9%35.8%21.0%

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?

18.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRM ($146) is trading below our estimate of fair value ($182.66)

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 (960.6x) compared to the Software industry average (39.9x).

PE vs Market: CRM is poor value based on its PE Ratio (960.6x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CRM is poor value based on its PEG Ratio (26.6x)


Price to Book Ratio

PB vs Industry: CRM is good value based on its PB Ratio (3.8x) compared to the US Software industry average (4.3x).


Next Steps

Future Growth

How is salesforce.com forecast to perform in the next 1 to 3 years based on estimates from 37 analysts?

36.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRM's forecast earnings growth (36.2% per year) is above the savings rate (1.7%).

Earnings vs Market: CRM's earnings (36.2% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: CRM's revenue (15.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CRM's revenue (15.3% 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 (11.9%).


Next Steps

Past Performance

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

56.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRM has a large one-off gain of $222.0M impacting its January 31 2020 financial results.

Growing Profit Margin: CRM's current net profit margins (0.7%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: CRM has become profitable over the past 5 years, growing earnings by 56.5% 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 (-88.6%) over the past year, making it difficult to compare to the Software industry average (18.7%).


Return on Equity

High ROE: CRM's Return on Equity (0.4%) is considered low.


Next Steps

Financial Health

How is salesforce.com's financial position?


Financial Position Analysis

Short Term Liabilities: CRM's short term assets ($16.0B) exceed its short term liabilities ($14.8B).

Long Term Liabilities: CRM's short term assets ($16.0B) exceed its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: CRM's debt to equity ratio (7.9%) is considered satisfactory.

Reducing Debt: CRM's debt to equity ratio has reduced from 33.7% to 7.9% over the past 5 years.

Debt Coverage: CRM's debt is well covered by operating cash flow (162%).

Interest Coverage: CRM's interest payments on its debt are well covered by EBIT (35.9x 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 6x debt).


Next Steps

Dividend

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


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 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.


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.


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

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Marc Benioff (54yo)

18.25s

Tenure

US$28,391,846

Compensation

Mr. Marc R. Benioff Co-Founded Salesforce.com, Inc. in February 1999 and has been its Chief Executive Officer February 2020 and was its Co-Chief Executive Officer since August 7, 2018 until February 2020 a ...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD28.39M) is above average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marc Benioff
Former Co-Founder18.25yrsUS$28.39m3.36% $4.5b
Mark Hawkins
President & CFO2.58yrsUS$9.81m0.0021% $2.8m
Bret Taylor
President & COO2.25yrsUS$11.82m0.15% $202.4m
Srinivas Tallapragada
President & Chief Engineering Officer0.25yrUS$12.31m0.0044% $5.9m
Parker Harris
Former Co-Founder & Director1.58yrsUS$12.00m0.22% $299.2m
Keith Block
Advisor to the Chief Executive Officerno dataUS$16.96m0.0067% $9.0m
Alexandre Dayon
Chief Product Officer and President of Products4yrsUS$1.80m0.0082% $11.0m
Amy Weaver
President0.17yrno data0.0032% $4.3m
Brent Hyder
President & Chief People Officer0.42yrno datano data
Joe Allanson
Chief Accounting Officer6yrsno data0.0035% $4.7m

2.6yrs

Average Tenure

53yo

Average Age

Experienced Management: CRM's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marc Benioff
Former Co-Founder18.25yrsUS$28.39m3.36% $4.5b
Parker Harris
Former Co-Founder & Director1.58yrsUS$12.00m0.22% $299.2m
Sanford Robertson
Lead Independent Director12.67yrsUS$596.29k0.014% $18.8m
Craig Conway
Independent Director14.42yrsUS$566.29k0.0011% $1.5m
Maynard Webb
Independent Director13.42yrsUS$566.29k0.0047% $6.3m
Alan Hassenfeld
Independent Director16.25yrsUS$546.29k0.015% $19.5m
Colin Powell
Independent Director6yrsUS$546.29k0.0067% $9.0m
John Roos
Independent Director6.42yrsUS$581.29k0.0010% $1.4m
Robin Washington
Independent Director6.42yrsUS$586.29k0.0037% $5.0m
Susan Wojcicki
Independent Director5.25yrsUS$546.29k0.012% $15.6m

9.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CRM's board of directors are considered experienced (9.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 10.4%.


Top Shareholders

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$134.116b
  • Shares outstanding: 895.00m
  • 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
FOOETLX (Eurotlx)YesCommon StockITEURJun 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, forecast opportunities, and gain insights through analytics and relationship intelligence, as well as deliver quotes, contracts, and invoices. It also provides Service Cloud, which enables companies to deliver personalized customer service and support, as well as a field service solution that enables companies to connect agents, dispatchers, and mobile employees through a centralized platform, which helps to schedule and dispatch work, and track and manage jobs in real-time. In addition, the company offers Marketing Cloud to plan, personalize, and optimize one-to-one customer marketing interactions; and Commerce Cloud, which enables companies to enhance engagement, conversion, revenue, and loyalty from their customers. Further, it provides Lightning Platform that offers no-code to pro-code Platform-as-a-Service tools for building, securing, integrating, and managing the business apps; Anypoint Platform enables customers to connect any system, application, data, or device; Quip collaboration platform, which combines documents, spreadsheets, apps, and chat with live CRM data; and Salesforce Customer 360, which enables companies to connect customer data across the various offerings for financial services, healthcare, and government. Additionally, the company offers consulting and implementation services; training services, including instructor-led and online courses; and support and adoption programs. It provides its services through direct sales; and consulting firms, systems integrators, and other partners. salesforce.com, inc. has a collaboration with Voluntis to introduce Voluntis Practice Solutions, a full-service platform for digital therapeutics prescription and reimbursement. The company was founded in 1999 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:18
End of Day Share Price2020/03/30 00:00
Earnings2020/01/31
Annual Earnings2020/01/31


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.