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

0.4%

CRM

-1.5%

US Software

-0.02%

US Market


1 Year Return

-1.2%

CRM

14.7%

US Software

1.6%

US Market

CRM underperformed the Software industry which returned 14.7% over the past year.

CRM underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

CRMIndustryMarket
7 Day0.4%-1.5%-0.02%
30 Day4.2%-1.7%2.7%
90 Day-2.1%-2.5%1.4%
1 Year-1.2%-1.2%16.3%14.7%3.8%1.6%
3 Year118.2%118.2%116.8%108.3%45.2%35.8%
5 Year171.6%171.6%164.6%145.1%61.8%44.1%

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

3 weeks ago | Simply Wall St

Want To Invest In salesforce.com, inc. (NYSE:CRM) Today? Read This First

Valuation

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

124.42x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

salesforce.com's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

salesforce.com's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

salesforce.com is poor value based on expected growth next year.


Price Based on Value of Assets

salesforce.com is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

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

39.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

salesforce.com's revenue is expected to grow by 17.9% yearly, however this is not considered high growth (20% yearly).

salesforce.com's earnings are expected to grow significantly at over 20% yearly.

salesforce.com's revenue growth is expected to exceed the United States of America market average.

salesforce.com's earnings growth is expected to exceed the United States of America market average.

salesforce.com's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

salesforce.com is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

salesforce.com has delivered over 20% year on year earnings growth in the past 5 years.

salesforce.com's 1-year earnings growth is negative, it can't be compared to the 5-year average.

salesforce.com's 1-year earnings growth is negative, it can't be compared to the US Software industry average.


Return on Equity

salesforce.com has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

salesforce.com used its assets less efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

salesforce.com has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is salesforce.com's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

salesforce.com's level of debt (17.3%) 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 (48.2% vs 17.3% today).

Debt is well covered by operating cash flow (130.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.1x coverage).


Balance Sheet

Low level of unsold assets.

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 and Payments Analysis

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.

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

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.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Marc Benioff (54yo)

1.1yrs

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

Marc's remuneration is higher than average for companies of similar size in United States of America.

Marc's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

52yo

Average Age

The tenure for the salesforce.com management team is about average.


Board Age and Tenure

9.3yrs

Average Tenure

60.5yo

Average Age

The tenure for the salesforce.com board of directors is about average.


Insider Trading

salesforce.com individual 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: 1.1yrs
    • Compensation: US$28.39m
  • Parker Harris (52yo)

    Co-Founder

    • Tenure: 1.1yrs
    • Compensation: US$12.00m
  • Alex Dayon (51yo)

    President & Chief Strategy Officer

    • Tenure: 3.6yrs
    • Compensation: US$1.80m
  • Mark Hawkins (60yo)

    President & CFO

    • Tenure: 2.1yrs
    • Compensation: US$9.81m
  • Bret Taylor (39yo)

    President & Chief Product Officer

    • Tenure: 1.8yrs
    • Compensation: US$11.82m
  • Amy Weaver (51yo)

    President of Legal & Corporate Affairs

    • Tenure: 5.9yrs
  • Joe Allanson (55yo)

    Chief Accounting Officer

    • Tenure: 5.6yrs
  • John Cummings

    Senior Vice President of Investor Relations

    • Tenure: 8.1yrs
  • 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$591.28k
  • Keith Block (58yo)

    Co-CEO & Director

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

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$566.29k
  • Maynard Webb (63yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$566.29k
  • Alan Hassenfeld (70yo)

    Independent Director

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

    Co-Founder

    • Tenure: 1.1yrs
    • Compensation: US$28.39m
  • Parker Harris (52yo)

    Co-Founder

    • Tenure: 1.1yrs
    • Compensation: US$12.00m
  • John Roos (64yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$581.29k
  • Robin Washington (56yo)

    Independent Director

    • Tenure: 6yrs
    • 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$134.454b
  • 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
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 Analysis2019/09/20 00:29
End of Day Share Price2019/09/19 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.