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Salesforce Inc CRM

Morningstar Rating
$316.88 +8.06 (2.61%)
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Company Report

Salesforce Earnings: Salesforce Declares a Dividend

Salesforce continues to perform well in what remains a tight demand environment, with upside versus our expectations on both the top and bottom lines for its fiscal fourth quarter. Guidance was mixed, with revenue slightly worse than we expected while earnings per share, or EPS, was slightly better. The biggest headline is the capital allocation strategy evolution, with the buyback program expanded by another $10 billion and the establishment of $0.40 quarterly dividend. Management was enthusiastic in its discussion of everything AI, which we think will be an area of strength for Salesforce, with the Einstein 1 Platform already generating revenue. Based on continued quarterly upside and new guidance, we are raising our midterm profitability estimates and are raising our fair value estimate to $300 per share, from $265. We see the stock as fairly valued.

Price vs Fair Value

CRM is trading at a 6% premium.
Price
$316.88
Fair Value
$941.00
Uncertainty
High
1-Star Price
$431.00
5-Star Price
$139.00
Economic Moat
Byps
Capital Allocation
Xpvvjtqq

Bulls Say, Bears Say

Bulls

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.

Bears

As the company grows larger, it may be increasingly difficult for Salesforce to grow faster than its various end markets.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
$308.82
Day Range
$306.62318.72
52-Week Range
$170.00318.72
Bid/Ask
$316.51 / $316.79
Market Cap
$306.74 Bil
Volume/Avg
9.4 Mil / 6.0 Mil

Key Statistics

Price/Earnings (Normalized)
40.36
Price/Sales
8.95
Dividend Yield (Trailing)
Dividend Yield (Forward)
0.50%
Total Yield
2.48%

Company Profile

Salesforce Inc provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
Sector
Technology
Industry
Software - Application
Stock Style Box
Large Growth
Total Number of Employees
79,390

Competitors

Valuation

Metric
CRM
PEGA
MSFT
Price/Earnings (Normalized)
40.3627.1837.57
Price/Book Value
5.1415.7812.96
Price/Sales
8.953.9513.63
Price/Cash Flow
23.8319.1229.70
Price/Earnings
CRM
PEGA
MSFT

Financial Strength

Metric
CRM
PEGA
MSFT
Quick Ratio
0.861.701.02
Current Ratio
1.041.781.22
Interest Coverage
13.0913.5341.49
Quick Ratio
CRM
PEGA
MSFT

Profitability

Metric
CRM
PEGA
MSFT
Return on Assets (Normalized)
8.01%16.01%19.91%
Return on Equity (Normalized)
12.86%110.35%39.57%
Return on Invested Capital (Normalized)
10.76%25.78%29.21%
Return on Assets
CRM
PEGA
MSFT
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