NYSE:CRM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

CRM

3.7%

US Software

-0.8%

US Market


1 Year Return

63.5%

CRM

52.2%

US Software

13.8%

US Market

Return vs Industry: CRM exceeded the US Software industry which returned 52.2% over the past year.

Return vs Market: CRM exceeded the US Market which returned 13.8% over the past year.


Shareholder returns

CRMIndustryMarket
7 Day-0.9%3.7%-0.8%
30 Day-10.5%-5.5%-5.7%
90 Day29.6%10.0%8.6%
1 Year63.5%63.5%53.3%52.2%16.4%13.8%
3 Year158.4%158.4%148.7%140.5%36.9%27.8%
5 Year222.5%222.5%267.3%246.0%85.0%64.2%

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?

91.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CRM ($242.74) is trading above our estimate of fair value ($220.3)

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 (91.5x) compared to the US Software industry average (56.2x).

PE vs Market: CRM is poor value based on its PE Ratio (91.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: CRM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CRM is good value based on its PB Ratio (5.7x) compared to the US Software industry average (6.9x).


Next Steps

Future Growth

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

-6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRM's earnings are forecast to decline over the next 3 years (-6.9% per year).

Earnings vs Market: CRM's earnings are forecast to decline over the next 3 years (-6.9% per year).

High Growth Earnings: CRM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CRM's revenue (15.7% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: CRM's revenue (15.7% 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 (8.6%).


Next Steps

Past Performance

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

48.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRM has a large one-off gain of $873.0M impacting its July 31 2020 financial results.

Growing Profit Margin: CRM's current net profit margins (12.2%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: CRM has become profitable over the past 5 years, growing earnings by 48.1% per year.

Accelerating Growth: CRM's earnings growth over the past year (149.8%) exceeds its 5-year average (48.1% per year).

Earnings vs Industry: CRM earnings growth over the past year (149.8%) exceeded the Software industry 13.9%.


Return on Equity

High ROE: CRM's Return on Equity (6.2%) 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 ($14.8B) exceed its short term liabilities ($13.0B).

Long Term Liabilities: CRM's short term assets ($14.8B) exceed its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: CRM's debt to equity ratio (7%) is considered satisfactory.

Reducing Debt: CRM's debt to equity ratio has reduced from 28.2% to 7% over the past 5 years.

Debt Coverage: CRM's debt is well covered by operating cash flow (157.6%).

Interest Coverage: CRM's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet


Next Steps

Dividend

What is salesforce.com 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 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.


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?

2.8yrs

Average management tenure


CEO

Marc Benioff (55 yo)

18.83yrs

Tenure

US$25,969,494

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 ($USD25.97M) is above average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Marc Benioff
Co-Founder18.83yrsUS$25.97m3.23%
$ 7.1b
Mark Hawkins
President & CFO3.08yrsUS$12.03m0.0014%
$ 3.2m
Bret Taylor
President & COO2.83yrsUS$11.94m0.13%
$ 286.5m
Srinivas Tallapragada
President & Chief Engineering Officer0.75yrUS$11.81m0.0048%
$ 10.6m
Parker Harris
Co-Founder2.08yrsUS$13.00m0.22%
$ 482.8m
Keith Block
Advisor to the Chief Executive Officer0.58yrUS$26.49m0.0066%
$ 14.6m
Gavin Patterson
President & Chief Revenue Officer0.083yrno datano data
Alexandre Dayon
President & Chief Strategy Officer4.58yrsUS$1.80m0.0082%
$ 18.0m
Amy Weaver
President0.67yrno data0.0022%
$ 4.9m
Brent Hyder
President & Chief People Officer1yrno datano data
Joe Allanson
Chief Accounting Officer6.58yrsno data0.0034%
$ 7.6m
Matthew Puljiz
Senior Director of Investor Relationsno datano datano data

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: CRM's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marc Benioff
Co-Founder18.83yrsUS$25.97m3.23%
$ 7.1b
Parker Harris
Co-Founder2.08yrsUS$13.00m0.22%
$ 482.8m
Arundhati Bhattacharya
Chairperson & CEO of Salesforce India0.42yrno datano data
Sanford Robertson
Lead Independent Director13.25yrsUS$621.92k0.0095%
$ 21.0m
Craig Conway
Independent Director14.92yrsUS$591.92k0.0012%
$ 2.7m
Maynard Webb
Independent Director14yrsUS$591.92k0.0048%
$ 10.5m
Alan Hassenfeld
Independent Director16.75yrsUS$571.92k0.0089%
$ 19.6m
Colin Powell
Independent Director6.5yrsUS$571.92k0.0067%
$ 14.8m
Neelie Kroes
Independent Director4.33yrsUS$591.92k0.0012%
$ 2.7m
John Roos
Independent Director7yrsUS$596.92k0.00083%
$ 1.8m
Robin Washington
Independent Director7yrsUS$611.92k0.0037%
$ 8.3m
Susan Wojcicki
Independent Director5.75yrsUS$571.92k0.012%
$ 25.6m

7.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: CRM's board of directors are considered experienced (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 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$220.893b
  • Shares outstanding: 910.00m
  • 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, fore ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/28 04:33
End of Day Share Price2020/09/25 00:00
Earnings2020/07/31
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.