Is Salesforce Stock a Good Investment?
Salesforce Investment Advice | CRM |
- Examine Salesforce's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Salesforce's leadership team and their track record. Good management can help Salesforce navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Salesforce's business and its evolving consumer preferences.
- Compare Salesforce's performance and market position to its competitors. Analyze how Salesforce is positioned in terms of product offerings, innovation, and market share.
- Check if Salesforce pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Salesforce's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Salesforce stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Salesforce is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Salesforce Stock
Researching Salesforce's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 82.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.63. Salesforce recorded earning per share (EPS) of 5.96. The entity last dividend was issued on the 18th of September 2024. The firm had 4:1 split on the 18th of April 2013.
To determine if Salesforce is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Salesforce's research are outlined below:
Salesforce is unlikely to experience financial distress in the next 2 years | |
Over 82.0% of the company shares are held by institutions such as insurance companies | |
Latest headline from finance.yahoo.com: Tech Soars to Record Highs, But Powells Caution Keeps Investors on Edge |
Salesforce Quarterly Cash And Short Term Investments |
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Salesforce uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Salesforce. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Salesforce's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
6th of March 2024 Upcoming Quarterly Report | View | |
29th of May 2024 Next Financial Report | View | |
31st of January 2024 Next Fiscal Quarter End | View | |
6th of March 2024 Next Fiscal Year End | View | |
31st of October 2023 Last Quarter Report | View | |
31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Salesforce's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Salesforce's investors have experienced.
Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
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2014-05-20 | 2014-04-30 | 0.1 | 0.11 | 0.01 | 10 | ||
2014-02-27 | 2014-01-31 | 0.06 | 0.07 | 0.01 | 16 | ||
2012-08-23 | 2012-07-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2012-02-23 | 2012-01-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2011-11-17 | 2011-10-31 | 0.08 | 0.09 | 0.01 | 12 | ||
2011-08-18 | 2011-07-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2009-05-21 | 2009-04-30 | 0.03 | 0.04 | 0.01 | 33 | ||
2009-02-25 | 2009-01-31 | 0.02 | 0.03 | 0.01 | 50 |
Know Salesforce's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Salesforce is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Salesforce backward and forwards among themselves. Salesforce's institutional investor refers to the entity that pools money to purchase Salesforce's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares | Norges Bank | 2024-06-30 | 10.2 M | Bank Of America Corp | 2024-06-30 | 10.1 M | Northern Trust Corp | 2024-09-30 | 9.5 M | Legal & General Group Plc | 2024-09-30 | 9 M | Wellington Management Company Llp | 2024-09-30 | 8.7 M | Nuveen Asset Management, Llc | 2024-09-30 | 8.5 M | Goldman Sachs Group Inc | 2024-09-30 | 8.2 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 8.1 M | Valueact Holdings, L.p. | 2024-09-30 | 7.8 M | Vanguard Group Inc | 2024-09-30 | 86.9 M | Blackrock Inc | 2024-06-30 | 74.6 M |
Salesforce's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 352.05 B.Market Cap |
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Salesforce's profitablity analysis
Last Reported | Projected for Next Year | ||
Return On Tangible Assets | 0.09 | 0.09 | |
Return On Capital Employed | 0.07 | 0.07 | |
Return On Assets | 0.04 | 0.04 | |
Return On Equity | 0.07 | 0.07 |
Determining Salesforce's profitability involves analyzing its financial statements and using various financial metrics to determine if Salesforce is a good buy. For example, gross profit margin measures Salesforce's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Salesforce's profitability and make more informed investment decisions.
Salesforce's Earnings Breakdown by Geography
Evaluate Salesforce's management efficiency
Salesforce has Return on Asset of 0.0471 % which means that on every $100 spent on assets, it made $0.0471 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0973 %, implying that it generated $0.0973 on every 100 dollars invested. Salesforce's management efficiency ratios could be used to measure how well Salesforce manages its routine affairs as well as how well it operates its assets and liabilities. As of the 6th of December 2024, Return On Tangible Assets is likely to grow to 0.09. Also, Return On Capital Employed is likely to grow to 0.07. At this time, Salesforce's Intangible Assets are very stable compared to the past year. As of the 6th of December 2024, Return On Tangible Assets is likely to grow to 0.09, while Deferred Long Term Asset Charges is likely to drop about 21 M.Last Reported | Projected for Next Year | ||
Book Value Per Share | 61.24 | 64.30 | |
Tangible Book Value Per Share | 5.90 | 6.20 | |
Enterprise Value Over EBITDA | 30.24 | 28.73 | |
Price Book Value Ratio | 4.59 | 8.71 | |
Enterprise Value Multiple | 30.24 | 28.73 | |
Price Fair Value | 4.59 | 8.71 | |
Enterprise Value | 50 B | 31.3 B |
The strategic initiatives led by Salesforce's management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Dividend Yield 0.0048 | Forward Dividend Yield 0.0048 | Forward Dividend Rate 1.6 | Beta 1.288 |
Basic technical analysis of Salesforce Stock
As of the 6th of December, Salesforce has the Risk Adjusted Performance of 0.2134, semi deviation of 0.8983, and Coefficient Of Variation of 359.58. Salesforce technical analysis provides you with a way to harness past market data to determine a pattern that measures the direction of the company's future prices. Please validate Salesforce downside deviation, jensen alpha, as well as the relationship between the Jensen Alpha and downside variance to decide if Salesforce is priced more or less accurately, providing market reflects its prevalent price of 362.8 per share. Given that Salesforce has jensen alpha of 0.4209, we advise you to double-check Salesforce's current market performance to make sure the company can sustain itself at a future point.Salesforce's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Salesforce insiders, such as employees or executives, is commonly permitted as long as it does not rely on Salesforce's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Salesforce insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Sundeep Reddy over a month ago Disposition of tradable shares by Sundeep Reddy of Salesforce at 264.7813 subject to Rule 16b-3 | ||
Parker Harris over two months ago Disposition of 4200 shares by Parker Harris of Salesforce at 118.04 subject to Rule 16b-3 | ||
Parker Harris over two months ago Disposition of 872 shares by Parker Harris of Salesforce subject to Rule 16b-3 | ||
Parker Harris over three months ago Disposition of 1400 shares by Parker Harris of Salesforce at 118.04 subject to Rule 16b-3 | ||
Marc Benioff over six months ago Disposition of 2310 shares by Marc Benioff of Salesforce at 299.917 subject to Rule 16b-3 | ||
Parker Harris over six months ago Disposition of 4200 shares by Parker Harris of Salesforce at 118.04 subject to Rule 16b-3 | ||
Sundeep Reddy over six months ago Acquisition by Sundeep Reddy of 2964 shares of Salesforce subject to Rule 16b-3 | ||
Marc Benioff over six months ago Disposition of 10887 shares by Marc Benioff of Salesforce at 303.2819 subject to Rule 16b-3 |
Salesforce's Outstanding Corporate Bonds
Salesforce issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Salesforce uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Salesforce bonds can be classified according to their maturity, which is the date when Salesforce has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
SALESFORCECOM INC Corp BondUS79466LAK08 | View | |
SALESFORCECOM INC Corp BondUS79466LAJ35 | View | |
SALESFORCECOM INC Corp BondUS79466LAM63 | View | |
SALESFORCECOM INC Corp BondUS79466LAL80 | View | |
SALESFORCE INC 37 Corp BondUS79466LAF13 | View | |
SALESFORCECOM INC Corp BondUS79466LAH78 | View |
Understand Salesforce's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Salesforce's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
Risk Adjusted Performance | 0.2134 | |||
Market Risk Adjusted Performance | 0.4554 | |||
Mean Deviation | 1.43 | |||
Semi Deviation | 0.8983 | |||
Downside Deviation | 1.43 | |||
Coefficient Of Variation | 359.58 | |||
Standard Deviation | 2.15 | |||
Variance | 4.63 | |||
Information Ratio | 0.2145 | |||
Jensen Alpha | 0.4209 | |||
Total Risk Alpha | 0.2215 | |||
Sortino Ratio | 0.3238 | |||
Treynor Ratio | 0.4454 | |||
Maximum Drawdown | 9.98 | |||
Value At Risk | (1.76) | |||
Potential Upside | 3.59 | |||
Downside Variance | 2.03 | |||
Semi Variance | 0.807 | |||
Expected Short fall | (1.70) | |||
Skewness | 2.01 | |||
Kurtosis | 7.98 |
Risk Adjusted Performance | 0.2134 | |||
Market Risk Adjusted Performance | 0.4554 | |||
Mean Deviation | 1.43 | |||
Semi Deviation | 0.8983 | |||
Downside Deviation | 1.43 | |||
Coefficient Of Variation | 359.58 | |||
Standard Deviation | 2.15 | |||
Variance | 4.63 | |||
Information Ratio | 0.2145 | |||
Jensen Alpha | 0.4209 | |||
Total Risk Alpha | 0.2215 | |||
Sortino Ratio | 0.3238 | |||
Treynor Ratio | 0.4454 | |||
Maximum Drawdown | 9.98 | |||
Value At Risk | (1.76) | |||
Potential Upside | 3.59 | |||
Downside Variance | 2.03 | |||
Semi Variance | 0.807 | |||
Expected Short fall | (1.70) | |||
Skewness | 2.01 | |||
Kurtosis | 7.98 |
Consider Salesforce's intraday indicators
Salesforce intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Salesforce stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Salesforce Corporate Filings
10Q | 4th of December 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 3rd of December 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
Salesforce Stock media impact
Far too much social signal, news, headlines, and media speculation about Salesforce that are available to investors today. That information is available publicly through Salesforce media outlets and privately through word of mouth or via Salesforce internal channels. However, regardless of the origin, that massive amount of Salesforce data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Salesforce news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Salesforce relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Salesforce's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Salesforce alpha.
Salesforce Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Salesforce can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Salesforce Historical Investor Sentiment
Investor biases related to Salesforce's public news can be used to forecast risks associated with an investment in Salesforce. The trend in average sentiment can be used to explain how an investor holding Salesforce can time the market purely based on public headlines and social activities around Salesforce. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Salesforce's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Salesforce and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Salesforce news discussions. The higher the estimate score, the more favorable the investor's outlook on Salesforce.
Salesforce Corporate Directors
John Roos | Independent Director | Profile | |
Parker Harris | Co-Founder, Chief Technology Officer, Director | Profile | |
Susan Wojcicki | Independent Director | Profile | |
Alan Hassenfeld | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Salesforce. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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 | Earnings Share 5.96 | Revenue Per Share 37.632 | Quarterly Revenue Growth 0.084 | Return On Assets 0.0471 |
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.
In summary, please note that there is a difference between Salesforce's value and its price, as these two are different measures arrived at by various 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.