Salesforce Stock Fundamentals

CRM Stock  USD 290.17  2.25  0.78%   
Salesforce fundamentals help investors to digest information that contributes to Salesforce's financial success or failures. It also enables traders to predict the movement of Salesforce Stock. The fundamental analysis module provides a way to measure Salesforce's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Salesforce stock.
At this time, Salesforce's Operating Income is very stable compared to the past year. As of the 11th of October 2024, EBIT is likely to grow to about 6.3 B, while Minority Interest is likely to drop about 3.1 M.
  
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Salesforce Company Operating Margin Analysis

Salesforce's Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Operating Margin

 = 

Operating Income

Revenue

X

100

More About Operating Margin | All Equity Analysis

Current Salesforce Operating Margin

    
  0.20 %  
Most of Salesforce's fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Salesforce is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Competition

Salesforce Pretax Profit Margin

Pretax Profit Margin

0.15

At this time, Salesforce's Pretax Profit Margin is very stable compared to the past year.
Based on the recorded statements, Salesforce has an Operating Margin of 0.2018%. This is 102.28% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The operating margin for all United States stocks is 103.66% lower than that of the firm.

Salesforce Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Salesforce's current stock value. Our valuation model uses many indicators to compare Salesforce value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Salesforce competition to find correlations between indicators driving Salesforce's intrinsic value. More Info.
Salesforce is rated below average in return on equity category among its peers. It is rated fifth in return on asset category among its peers reporting about  0.48  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Salesforce is roughly  2.07 . At this time, Salesforce's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Salesforce by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Salesforce Operating Margin Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Salesforce's direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Salesforce could also be used in its relative valuation, which is a method of valuing Salesforce by comparing valuation metrics of similar companies.
Salesforce is currently under evaluation in operating margin category among its peers.

Salesforce ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Salesforce's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Salesforce's managers, analysts, and investors.
Environmental
Governance
Social

Salesforce Fundamentals

About Salesforce Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Salesforce's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Salesforce using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Salesforce based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for Next Year
Current Deferred Revenue19 B20 B
Total Revenue34.9 B36.6 B
Cost Of Revenue11.4 B11.9 B
Stock Based Compensation To Revenue 0.08  0.11 
Sales General And Administrative To Revenue 0.10  0.14 
Research And Ddevelopement To Revenue 0.14  0.17 
Capex To Revenue 0.02  0.02 
Revenue Per Share 35.79  37.58 
Ebit Per Revenue 0.17  0.18 

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When determining whether Salesforce is a strong investment it is important to analyze Salesforce's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Salesforce's future performance. For an informed investment choice regarding Salesforce Stock, refer to the following important reports:
Check out Salesforce Piotroski F Score and Salesforce Altman Z Score analysis.
To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.
You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Salesforce. If investors know Salesforce will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Salesforce listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.148
Dividend Share
0.8
Earnings Share
5.73
Revenue Per Share
37.632
Quarterly Revenue Growth
0.084
The market value of Salesforce is measured differently than its book value, which is the value of Salesforce that is recorded on the company's balance sheet. Investors also form their own opinion of Salesforce's value that differs from its market value or its book value, called intrinsic value, which is Salesforce's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Salesforce's market value can be influenced by many factors that don't directly affect Salesforce's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Salesforce's value and its price as these two are different measures arrived at by different means. Investors typically determine if Salesforce is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Salesforce's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.