We believe Salesforce represents one of best long-term investment opportunities in software, particularly as the company should provide investors with a nice balance between revenue growth and improving profitability. Even as revenue growth has decelerated over time, we believe a new focus on margin expansion, share buybacks, and dividends should continue to compound strong earnings growth for years to come.
Salesforce.com dominates the SFA space but still only controls 30% in a highly fragmented market that continues to grow double digits each year, suggesting there is still room to run.
As the company grows larger, it may be increasingly difficult for Salesforce to grow faster than its various end markets.
|
Metric
|
CRM
|
MSFT
|
ADBE
|
|---|---|---|---|
Price/Earnings (Normalized) | 33.67 | 37.24 | 28.31 |
Price/Book Value | 4.52 | 12.85 | 13.89 |
Price/Sales | 7.83 | 13.51 | 10.90 |
Price/Cash Flow | 20.86 | 29.44 | 31.11 |
|
Metric
|
CRM
|
MSFT
|
ADBE
|
|---|---|---|---|
Quick Ratio | 0.96 | 1.02 | 0.93 |
Current Ratio | 1.09 | 1.22 | 1.05 |
Interest Coverage | 18.87 | 41.49 | 55.63 |
|
Metric
|
CRM
|
MSFT
|
ADBE
|
|---|---|---|---|
Return on Assets (Normalized) | 8.50% | 19.91% | 27.01% |
Return on Equity (Normalized) | 13.87% | 39.57% | 49.98% |
Return on Invested Capital (Normalized) | 11.66% | 29.21% | 38.81% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
SAP
| SAP SE ADR | Rzw | Zcnzm | $209.2 Bil | |
INTU
| Intuit Inc | Xbhxwcgsvx | Qmkw | $171.7 Bil | |
NOW
| ServiceNow Inc | Nkmbswzm | Wycf | $151.3 Bil | |
UBER
| Uber Technologies Inc | Tjldrzyc | Wcjqfbg | $149.7 Bil | |
SHOP
| Shopify Inc Registered Shs -A- Subord Vtg | Sgfthkgjk | Xkssng | $89.3 Bil | |
CDNS
| Cadence Design Systems Inc | Ppvskchk | Lrppg | $80.0 Bil | |
WDAY
| Workday Inc Class A | Dpftlqlgc | Rwb | $67.9 Bil | |
ROP
| Roper Technologies Inc | Wkyqyprxw | Gvlr | $56.3 Bil | |
DASTY
| Dassault Systemes SE ADR | Dgcmckhr | Zpjh | $53.4 Bil |
