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salesforce.com

NYSE:CRM
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CRM
NYSE
$117B
Market Cap
  1. Home
  2. US
  3. Software
Company description

salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management. The last earnings update was 55 days ago. More info.


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CRM Share Price and Events
7 Day Returns
-0.2%
NYSE:CRM
4.1%
US Software
3.2%
US Market
1 Year Returns
31.5%
NYSE:CRM
17%
US Software
-6.5%
US Market
CRM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
salesforce.com (CRM) -0.2% 21.2% 11.8% 31.5% 113.2% 150.9%
US Software 4.1% 13.1% 3.9% 17% 99.1% 128.1%
US Market 3.2% 11.4% -1.4% -6.5% 42.1% 41.6%
1 Year Return vs Industry and Market
  • CRM outperformed the Software industry which returned 17% over the past year.
  • CRM outperformed the Market in United States of America which returned -6.5% over the past year.
Price Volatility
CRM
Industry
5yr Volatility vs Market
Related Companies

CRM Value

 Is salesforce.com undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of salesforce.com to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for salesforce.com.

NYSE:CRM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 41 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CRM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Software Unlevered Beta Simply Wall St/ S&P Global 1.11
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.106 (1 + (1- 21%) (3.76%))
1.138
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.138 * 7.27%)
11.01%

Discounted Cash Flow Calculation for NYSE:CRM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for salesforce.com is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CRM DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 2,626.22 3,262.96 3,921.25 4,984.83 6,299.00
Source Analyst x27 Analyst x25 Analyst x16 Analyst x6 Analyst x3
Present Value
Discounted (@ 11.01%)
2,365.82 2,647.98 2,866.68 3,282.89 3,737.05
Present value of next 5 years cash flows $14,900.41
NYSE:CRM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $6,299.00 × (1 + 2.73%) ÷ (11.01% – 2.73%)
$78,184.30
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $78,184.30 ÷ (1 + 11.01%)5
$46,384.89
NYSE:CRM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $14,900.41 + $46,384.89
$61,285.30
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $61,285.30 / 765.00
$80.11
NYSE:CRM Discount to Share Price
Calculation Result
Value per share (USD) From above. $80.11
Current discount Discount to share price of $148.95
= -1 x ($148.95 - $80.11) / $80.11
-85.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of salesforce.com is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for salesforce.com's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are salesforce.com's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CRM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-10-31) in USD $0.97
NYSE:CRM Share Price ** NYSE (2019-01-22) in USD $148.95
United States of America Software Industry PE Ratio Median Figure of 74 Publicly-Listed Software Companies 45.01x
United States of America Market PE Ratio Median Figure of 3,026 Publicly-Listed Companies 17.11x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of salesforce.com.

NYSE:CRM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CRM Share Price ÷ EPS (both in USD)

= 148.95 ÷ 0.97

152.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • salesforce.com is overvalued based on earnings compared to the US Software industry average.
  • salesforce.com is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does salesforce.com's expected growth come at a high price?
Raw Data
NYSE:CRM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 152.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 41 Analysts
26.7%per year
United States of America Software Industry PEG Ratio Median Figure of 59 Publicly-Listed Software Companies 3.27x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

NYSE:CRM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 152.86x ÷ 26.7%

5.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • salesforce.com is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on salesforce.com's assets?
Raw Data
NYSE:CRM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-10-31) in USD $19.21
NYSE:CRM Share Price * NYSE (2019-01-22) in USD $148.95
United States of America Software Industry PB Ratio Median Figure of 218 Publicly-Listed Software Companies 5.16x
United States of America Market PB Ratio Median Figure of 5,101 Publicly-Listed Companies 1.77x
NYSE:CRM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CRM Share Price ÷ Book Value per Share (both in USD)

= 148.95 ÷ 19.21

7.76x

* Primary Listing of salesforce.com.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • salesforce.com is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess salesforce.com's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. salesforce.com has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CRM Future Performance

 How is salesforce.com expected to perform in the next 1 to 3 years based on estimates from 41 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
26.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is salesforce.com expected to grow at an attractive rate?
  • salesforce.com's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • salesforce.com's earnings growth is expected to exceed the United States of America market average.
  • salesforce.com's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CRM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CRM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 41 Analysts 26.7%
NYSE:CRM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 41 Analysts 17.1%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 19.4%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.6%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CRM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 41 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CRM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-01-31 26,535 7,435 2,641 5
2022-01-31 22,509 6,043 1,827 7
2021-01-31 19,053 4,896 1,112 25
2020-01-31 15,991 4,016 673 39
2019-01-31 13,243 3,222 818 41
NYSE:CRM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-10-31 12,484 3,119 721
2018-07-31 11,793 3,101 723
2018-04-30 11,089 2,974 470
2018-01-31 10,480 2,738 127
2017-10-31 9,969 2,392 103
2017-07-31 9,413 2,421 -42
2017-04-30 8,872 2,341 142
2017-01-31 8,392 2,162 180
2016-10-31 7,907 1,926 206
2016-07-31 7,475 1,934 218
2016-04-30 7,073 1,988 -13
2016-01-31 6,667 1,672 -47

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • salesforce.com's earnings are expected to grow significantly at over 20% yearly.
  • salesforce.com's revenue is expected to grow by 17.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CRM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 41 Analyst Estimates (S&P Global) See Below

All data from salesforce.com Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CRM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-01-31 3.07 3.15 2.98 2.00
2022-01-31 2.12 2.60 1.66 4.00
2021-01-31 1.42 1.82 1.04 16.00
2020-01-31 0.85 1.14 0.64 24.00
2019-01-31 1.06 1.12 0.96 26.00
NYSE:CRM Past Financials Data
Date (Data in USD Millions) EPS *
2018-10-31 0.97
2018-07-31 0.99
2018-04-30 0.65
2018-01-31 0.18
2017-10-31 0.14
2017-07-31 -0.06
2017-04-30 0.20
2017-01-31 0.26
2016-10-31 0.30
2016-07-31 0.32
2016-04-30 -0.02
2016-01-31 -0.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • salesforce.com is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess salesforce.com's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
salesforce.com has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CRM Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare salesforce.com's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • salesforce.com has delivered over 20% year on year earnings growth in the past 5 years.
  • salesforce.com's 1-year earnings growth exceeds its 5-year average (603.5% vs 73.3%)
  • salesforce.com's earnings growth has exceeded the US Software industry average in the past year (603.5% vs 16.5%).
Earnings and Revenue History
salesforce.com's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from salesforce.com Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CRM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-10-31 12,484.01 721.48 7,058.65 1,764.07
2018-07-31 11,793.01 723.48 6,569.65 1,677.07
2018-04-30 11,089.01 470.48 6,170.65 1,601.07
2018-01-31 10,480.01 127.48 5,917.65 1,553.07
2017-10-31 9,968.99 102.56 5,571.68 1,501.19
2017-07-31 9,412.76 -41.75 5,378.44 1,418.65
2017-04-30 8,872.38 141.87 5,129.42 1,323.16
2017-01-31 8,391.98 179.63 4,870.09 1,208.13
2016-10-31 7,907.39 205.56 4,632.71 1,114.80
2016-07-31 7,474.59 217.72 4,393.59 1,042.55
2016-04-30 7,072.65 -12.76 4,181.98 985.14
2016-01-31 6,667.22 -47.43 3,988.06 946.30
2015-10-31 6,302.43 -87.68 3,811.27 901.43
2015-07-31 5,974.11 -101.45 3,682.66 857.68
2015-04-30 5,657.98 -161.69 3,548.33 826.69
2015-01-31 5,373.59 -262.69 3,437.03 792.92
2014-10-31 5,074.22 -313.55 3,321.89 760.02
2014-07-31 4,766.60 -399.06 3,179.95 735.25
2014-04-30 4,405.14 -261.37 2,970.06 680.22
2014-01-31 4,071.00 -232.18 2,764.85 623.80
2013-10-31 3,760.44 -136.40 2,513.42 571.90
2013-07-31 3,472.81 -232.26 2,320.60 515.28
2013-04-30 3,247.36 -318.69 2,172.70 466.64
2013-01-31 3,050.20 -270.45 2,047.85 429.48
2012-10-31 2,847.43 -253.68 1,918.24 388.91
2012-07-31 2,643.29 -37.14 1,765.78 350.88
2012-04-30 2,457.64 -31.58 1,649.97 324.83
2012-01-31 2,266.54 -11.57 1,517.39 295.35

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • salesforce.com has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • salesforce.com used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • salesforce.com has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess salesforce.com's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
salesforce.com has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CRM Health

 How is salesforce.com's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up salesforce.com's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • salesforce.com's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • salesforce.com's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of salesforce.com's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from salesforce.com Company Filings, last reported 2 months ago.

NYSE:CRM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-10-31 14,693.00 4,391.00 3,450.00
2018-07-31 13,528.00 4,398.00 3,427.00
2018-04-30 11,060.00 3,988.00 7,159.00
2018-01-31 9,388.50 2,233.02 4,521.71
2017-10-31 8,829.37 2,588.23 3,628.67
2017-07-31 8,451.31 2,582.09 3,501.25
2017-04-30 7,934.49 2,535.50 3,219.55
2017-01-31 7,500.13 2,792.06 2,208.89
2016-10-31 6,806.04 2,515.70 1,200.81
2016-07-31 6,132.58 2,515.01 1,174.28
2016-04-30 5,584.26 2,065.46 2,031.19
2016-01-31 5,002.87 2,048.57 2,725.38
2015-10-31 4,749.95 2,001.90 1,358.01
2015-07-31 4,535.80 1,962.32 1,170.47
2015-04-30 4,235.20 1,973.83 1,019.02
2015-01-31 3,975.18 1,495.98 995.43
2014-10-31 3,790.61 2,220.09 926.10
2014-07-31 3,300.57 2,211.69 844.58
2014-04-30 3,131.91 2,171.81 879.12
2014-01-31 3,038.51 2,508.56 838.77
2013-10-31 2,912.36 2,393.33 703.54
2013-07-31 2,818.65 2,386.72 623.49
2013-04-30 2,462.80 1,618.12 2,099.82
2013-01-31 2,317.63 521.28 867.62
2012-10-31 2,083.62 578.68 605.56
2012-07-31 1,892.31 570.17 1,107.66
2012-04-30 1,809.77 562.56 710.39
2012-01-31 1,587.36 568.24 777.87
  • salesforce.com's level of debt (29.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (82.2% vs 29.9% today).
  • Debt is well covered by operating cash flow (71%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).
X
Financial health checks
We assess salesforce.com's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. salesforce.com has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CRM Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from salesforce.com dividends. Estimated to be 0% next year.
If you bought $2,000 of salesforce.com shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate salesforce.com's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate salesforce.com's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CRM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 41 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1986 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CRM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-01-31
2022-01-31
2021-01-31 0.00 6.00
2020-01-31 0.00 7.00
2019-01-31 0.00 7.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as salesforce.com has not reported any payouts.
  • Unable to verify if salesforce.com's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of salesforce.com's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as salesforce.com has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of salesforce.com's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess salesforce.com's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can salesforce.com afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. salesforce.com has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CRM Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Marc Benioff
COMPENSATION $4,653,362
AGE 53
TENURE AS CEO 0.4 years
CEO Bio

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, 2018 . Mr. Benioff serves as Chief Executive Officer and Chairman of the Board of Directors for salesforce.com Singapore Pte. Ltd. He is a 35-year veteran of the software industry. Prior to launching Salesforce, he served at Oracle Corporation from 1986 to 1999. He serves as a General Advisor of Keas Inc. He served as a Senior Vice President of Oracle Corporation, where he held a number of positions in sales, marketing, and product development. He was employed at Nextera Enterprises Inc. He founded his first company, Liberty Software, which created video games. He also worked as an assembly language programmer in Apple Computer’s Macintosh Division during his college years. He serves as a Member of Executive Council at TechNet. Mr. Benioff served as a Director of Cisco Systems, Inc. since August 1, 2012 until 2014. He served as a Director at GrandCentral Communications, Inc. He has evangelized a new model of integrated corporate philanthropy. He has been the Chairman of the Board of salesforce.com, Inc. since February 1999. He has been a Director of salesforce.com, Inc. since February 1999. He has been a Director of DW Data, Inc. since August 1999. He serves as a Director of Notifi.com, Committee Encouraging Corporate Philanthropy and Yield Dynamics. He served as a Director of Cloudwords, Inc. until February 21, 2017. Mr. Benioff served as a Member of Advisory Board at MetaMind Inc. He served as a Member of Board of Advisors of TIBCO Loyalty Lab. He serves as a Trustee of University of Southern California. In 2000, he launched the Salesforce Foundation and established the “1-1-1 model,” whereby Salesforce contributes one percent of product, one percent of equity and one percent of employee hours back to the communities it serves globally. He is a member of the World Economic Forum (“WEF”) Board of Trustees. Mr. Benioff serves as the inaugural Chair of WEF’s Forum Center for the Fourth Industrial Revolution in San Francisco. He served as Co-Chairman of President of the United States' Information Technology Advisory Committee (PITAC) from 2003 to 2005. Mr. Benioff was named Innovator of the Decade by Forbes, ranked #3 on Fortune’s 2017 “Best Businessperson of the Year” list, and recognized as one of the World’s 50 Greatest Leaders by Fortune and 20 Best- Performing CEOs by Harvard Business Review and received The Economist’s Innovation Award. He is the author of three books, including the national best-seller, Behind the Cloud. Mr. Benioff received a Bachelor of Science in Business Administration from the University of Southern California in 1986 and an honorary degree of Doctor of Humane Letters in 2014 from the University of Southern California.

CEO Compensation
  • Marc's compensation has been consistent with company performance over the past year.
  • Marc's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the salesforce.com management team in years:

2.2
Average Tenure
51
Average Age
  • The tenure for the salesforce.com management team is about average.
Management Team

Marc Benioff

TITLE
Co-Founder
COMPENSATION
$5M
AGE
53
TENURE
0.4 yrs

Keith Block

TITLE
Co-CEO & Director
COMPENSATION
$2M
AGE
57
TENURE
0.4 yrs

Alex Dayon

TITLE
President & Chief Strategy Officer
COMPENSATION
$2M
AGE
50
TENURE
2.9 yrs

Mark Hawkins

TITLE
President & CFO
COMPENSATION
$2M
AGE
59
TENURE
1.4 yrs

Parker Harris

TITLE
Co-Founder
COMPENSATION
$2M
AGE
51
TENURE
19.9 yrs

Cindy Robbins

TITLE
President & Chief People Officer
AGE
45
TENURE
1.4 yrs

Bret Taylor

TITLE
President & Chief Product Officer
AGE
38
TENURE
1.2 yrs

Joe Allanson

TITLE
Chief Accounting Officer
AGE
54
TENURE
4.9 yrs

John Cummings

TITLE
Senior Vice President of Investor Relations
TENURE
7.4 yrs

Amy Weaver

TITLE
President of Legal & Corporate Affairs
AGE
50
TENURE
5.3 yrs
Board of Directors Tenure

Average tenure and age of the salesforce.com board of directors in years:

8.6
Average Tenure
59.5
Average Age
  • The tenure for the salesforce.com board of directors is about average.
Board of Directors

Marc Benioff

TITLE
Co-Founder
COMPENSATION
$5M
AGE
53
TENURE
19.9 yrs

Keith Block

TITLE
Co-CEO & Director
COMPENSATION
$2M
AGE
57
TENURE
5.6 yrs

Parker Harris

TITLE
Co-Founder
COMPENSATION
$2M
AGE
51
TENURE
0.4 yrs

Sandy Robertson

TITLE
Lead Independent Director
COMPENSATION
$591K
AGE
86
TENURE
11.6 yrs

Craig Conway

TITLE
Independent Director
COMPENSATION
$561K
AGE
63
TENURE
13.3 yrs

Maynard Webb

TITLE
Independent Director
COMPENSATION
$561K
AGE
62
TENURE
12.3 yrs

John Roos

TITLE
Independent Director
COMPENSATION
$561K
AGE
63
TENURE
5.3 yrs

Robin Washington

TITLE
Independent Director
COMPENSATION
$541K
AGE
55
TENURE
5.3 yrs

Susan Wojcicki

TITLE
Independent Director
COMPENSATION
$541K
AGE
49
TENURE
4.1 yrs

Alan Hassenfeld

TITLE
Independent Director
COMPENSATION
$541K
AGE
69
TENURE
15.1 yrs
Who owns this company?
Recent Insider Trading
  • salesforce.com insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Dec 18 Sell Marc Benioff Individual 17. Dec 18 17. Dec 18 -142,472 $133.29 $-18,985,165
18. Sep 18 Sell Sanford Robertson Individual 13. Sep 18 13. Sep 18 -30,000 $157.96 $-4,738,851
12. Sep 18 Sell Marc Benioff Individual 12. Sep 18 12. Sep 18 -5,000 $155.45 $-769,699
28. Aug 18 Sell Alexandre Dayon Individual 27. Aug 18 27. Aug 18 -760 $151.53 $-115,165
28. Aug 18 Sell Mark Hawkins Individual 27. Aug 18 27. Aug 18 -942 $151.53 $-142,744
13. Jun 18 Sell Sanford Robertson Individual 11. Jun 18 11. Jun 18 -30,000 $134.05 $-4,021,617
01. Jun 18 Sell Alan Hassenfeld Individual 01. Jun 18 01. Jun 18 -25,000 $130.54 $-3,263,440
30. May 18 Sell Mark Hawkins Individual 29. May 18 29. May 18 -942 $126.76 $-119,412
27. Mar 18 Sell Maria Martinez Individual 23. Mar 18 23. Mar 18 -936 $118.00 $-110,448
27. Feb 18 Sell Joe Allanson Individual 26. Feb 18 26. Feb 18 -49 $115.87 $-5,678
24. Feb 18 Sell Maria Martinez Individual 23. Feb 18 23. Feb 18 -341 $113.47 $-38,695
X
Management checks
We assess salesforce.com's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. salesforce.com has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CRM News

Simply Wall St News

Why salesforcecom inc (NYSE:CRM) Could Have A Place In Your Portfolio

I've been keeping an eye on salesforcecom inc (NYSE:CRM) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe CRM has a lot to offer. … company with

Simply Wall St -

Is Now The Time To Look At Buying salesforcecom inc (NYSE:CRM)?

saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $160.43 and falling to the lows of $130.99. … A question to answer is whether salesforce.com's current trading price of $132.17 reflective of the actual value of the? … Let’s take a look at salesforce.com’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Why salesforcecom inc (NYSE:CRM) Delivered An Inferior ROE Compared To The Industry

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.053 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

salesforcecom inc (NYSE:CRM): Financial Strength Analysis

With a market capitalization of US$112.68b, salesforcecom inc (NYSE:CRM) is a large-cap stock, which is considered by most investors as a safe bet. … Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … Using the most recent data for CRM, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.

Simply Wall St -

What Are Analysts Expecting From salesforcecom inc (NYSE:CRM) In The Year Ahead?

Looking at salesforcecom inc's (NYSE:CRM) earnings update in April 2018, … as a -5.1% fall in profits is expected in the upcoming year … the past 5-year average growth rate of 34.5%.

Simply Wall St -

Should You Buy salesforcecom inc (NYSE:CRM) At US$138?

As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, what if the stock is still a bargain?

Simply Wall St -

With An ROE Of 4.25%, Can salesforcecom inc (NYSE:CRM) Catch Up To The Industry?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to better understand how you can grow your money by investing in salesforcecom inc (NYSE:CRM). … salesforcecom inc’s (NYSE:CRM) most recent return on equity was a substandard 4.25% relative to its industry performance of 13.11% over the past year.

Simply Wall St -

Why salesforcecom inc (NYSE:CRM) Is An Attractive Investment

I've been keeping an eye on salesforcecom inc (NYSE:CRM) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe CRM has a lot to offer. … In the following section, I expand a bit more on these key aspects.

Simply Wall St -

Should You Be Tempted To Sell salesforcecom inc. (NYSE:CRM) Because Of Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for CRM Price per share = $129.3 Earnings per share = $0.653 ∴ Price-Earnings Ratio = $129.3 ÷ $0.653 = 198.1x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … Since CRM's P/E of 198.1x is higher than its industry peers (36.2x), it means that investors are paying more than they should for each dollar of CRM's earnings. … For example, if you are inadvertently comparing riskier firms with CRM, then CRM’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.

Simply Wall St -

Salesforcecom inc. (NYSE:CRM): What's The Analyst Consensus Outlook?

Below is a brief commentary on my key takeaways on how market analysts predict Salesforce.com's earnings growth trajectory over the next couple of years and whether the future looks brighter. … Check out our latest analysis for Salesforce.com Analysts' expectations for the upcoming year seems positive, with earnings growth more than doubling. … This means that, we can anticipate Salesforce.com will grow its earnings by 35.05% every year for the next couple of years.

Simply Wall St -

CRM Company Info

Map
Description

salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management. 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; Commerce Cloud, which enables companies to enhance engagement, conversion, revenue, and loyalty from their customers; and Community Cloud that enables companies to create and manage branded digital destinations for customers, partners, and employees. Further, it provides Quip collaboration platform, which combines documents, spreadsheets, apps, and chat with live CRM data; Salesforce Platform for building enterprise apps, as well as artificial intelligence (AI), no-code, low-code, and code development and integration services, including Trailhead, Einstein AI, Lightning, Internet of Things, Heroku, Analytics, and AppExchange; and solutions for financial services, healthcare, and government. Additionally, the company offers cloud services, such as 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 partnership with Apple Inc. to develop customer relationship management platform. The company was founded in 1999 and is headquartered in San Francisco, California.

Details
Name: salesforce.com, inc.
CRM
Exchange: NYSE
Founded: 1999
$116,670,150,000
765,000,000
Website: http://www.salesforce.com
Address: salesforce.com, inc.
The Landmark @ One Market,
Suite 300,
San Francisco,
California, 94105,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CRM Common Stock New York Stock Exchange US USD 23. Jun 2004
DB FOO Common Stock Deutsche Boerse AG DE EUR 23. Jun 2004
XTRA FOO Common Stock XETRA Trading Platform DE EUR 23. Jun 2004
LSE 0QYJ Common Stock London Stock Exchange GB USD 23. Jun 2004
SWX CRM Common Stock SIX Swiss Exchange CH CHF 23. Jun 2004
WBAG CRM Common Stock Wiener Boerse AG AT EUR 23. Jun 2004
BMV CRM * Common Stock Bolsa Mexicana de Valores MX MXN 23. Jun 2004
BOVESPA SSFO34 BDR EACH REPR 1/2 COM USD0.001 Bolsa de Valores de Sao Paulo BR BRL 25. Apr 2016
Number of employees
Current staff
Staff numbers
29,000
salesforce.com employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/22 23:53
End of day share price update: 2019/01/22 00:00
Last estimates confirmation: 2019/01/17
Last earnings filing: 2018/11/28
Last earnings reported: 2018/10/31
Last annual earnings reported: 2018/01/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.