As a leading player in the software industry, Salesforce Inc(CRM, Financial) has been making waves with its impressive performance. As of July 19, 2023, the company's stock price stands at $234.37, reflecting a gain of 2.96% today and a 10.59% increase over the past four weeks. With a market capitalization of $228.28 billion, Salesforce Inc(CRM) is a significant player in its sector. This article will delve into the company's GF Score of 93/100, a comprehensive measure of stock performance that considers five key aspects of valuation.
Financial Strength: A Solid Foundation
Salesforce Inc(CRM, Financial) boasts a Financial Strength Rank of 7/10. This score is a testament to the company's robust financial situation, considering factors such as its debt burden, debt to revenue ratio, and Altman Z-Score. Although the company's interest coverage is not available, its debt to revenue ratio stands at a healthy 0.41, indicating a manageable level of debt. Furthermore, the company's Altman Z-Score of 4.18 suggests a low probability of financial distress.
Profitability Rank: Consistent Performance
The company's Profitability Rank of 7/10 reflects its consistent profitability. With an operating margin of 9.20% and a Piotroski F-Score of 6, Salesforce Inc(CRM, Financial) demonstrates a strong ability to generate profits. Despite a slight downtrend in the 5-year average operating margin (-1.80%), the company has maintained profitability for 7 out of the past 10 years, indicating a stable business model.
Growth Rank: Impressive Expansion
Salesforce Inc(CRM, Financial) shines in its Growth Rank, scoring a perfect 10/10. This score reflects the company's impressive growth in terms of revenue and profitability. With a 5-year revenue growth rate of 16.80% and a 3-year revenue growth rate of 16.10%, the company has demonstrated consistent expansion. Furthermore, its 5-year EBITDA growth rate of 26.80% indicates a robust increase in its business operations.
GF Value Rank: Attractive Valuation
The company's GF Value Rank of 9/10 suggests an attractive valuation. This rank is determined by the price-to-GF-Value ratio, a proprietary metric that considers historical multiples and an adjustment factor based on past returns, growth, and future business performance estimates. Salesforce Inc(CRM, Financial) falls into the third-cheapest percentile, which historically has performed the best over a full market cycle.
Momentum Rank: Strong Momentum
With a Momentum Rank of 9/10, Salesforce Inc(CRM, Financial) demonstrates strong momentum. This rank is determined using the standardized momentum ratio and other momentum indicators, suggesting that the company's stock price has a high likelihood of continuing its upward trajectory.
Competitive Analysis: Standing Tall Among Peers
When compared to its competitors, Salesforce Inc(CRM, Financial) holds its ground with a GF Score of 93/100. Intuit Inc(INTU, Financial), with a GF Score of 98, slightly outperforms Salesforce Inc(CRM), while ServiceNow Inc(NOW, Financial) and Uber Technologies Inc(UBER, Financial) trail behind with GF Scores of 87 and 72, respectively. This comparison underscores Salesforce Inc(CRM)'s strong position in the competitive landscape of the software industry.
In conclusion, Salesforce Inc(CRM, Financial) presents a compelling investment opportunity, with strong financial strength, consistent profitability, impressive growth, attractive valuation, and strong momentum. Its robust GF Score of 93/100 suggests high outperformance potential, making it a stock worth considering for value investors.
