Now trading at a price of $282.5, Salesforce has moved -4.0% so far today.
Salesforce returned gains of 49.3% last year, with its stock price reaching a high of $318.71 and a low of $190.57. Over the same period, the stock outperformed the S&P 500 index by 25.9%. More recently, the company's 50-day average price was $298.38. Salesforce, Inc. provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. Based in San Francisco, CA, the Large-Cap Technology company has 72,682 full time employees. Salesforce has not offered a dividend during the last year.
Strong Revenue Growth but an Average Current Ratio:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $13,282 | $17,098 | $21,252 | $26,492 | $31,352 | $34,857 |
| Gross Margins | 74% | 75% | 74% | 73% | 73% | 75% |
| Net Margins | 8% | 1% | 19% | 5% | 1% | 12% |
| Net Income (M) | $1,110 | $126 | $4,072 | $1,444 | $208 | $4,136 |
| Net Interest Expense (M) | $154 | $20 | $15 | $5 | $10 | $29 |
| Depreciation & Amort. (M) | $982 | $2,135 | $2,846 | $3,298 | $3,786 | $3,959 |
| Diluted Shares (M) | 879 | 939 | 1,001 | 1,000 | 981 | 984 |
| Earnings Per Share | $1.26 | $0.13 | $4.07 | $1.44 | $0.21 | $4.2 |
| EPS Growth | n/a | -89.68% | 3030.77% | -64.62% | -85.42% | 1900.0% |
| Avg. Price | $132.21 | $155.1 | $200.87 | $247.37 | $195.07 | $283.675 |
| P/E Ratio | 91.81 | 1107.86 | 45.45 | 169.43 | 928.9 | 66.59 |
| Free Cash Flow (M) | $2,803 | $3,688 | $4,091 | $5,283 | $6,313 | $9,498 |
| CAPEX (M) | $595 | $643 | $710 | $717 | $798 | $736 |
| EV / EBITDA | 68.61 | 57.75 | 58.63 | 67.61 | 43.08 | 31.72 |
| Total Debt (M) | $6,018 | $5,364 | $13,284 | $21,192 | $18,844 | $17,853 |
| Net Debt / EBITDA | 1.42 | 0.67 | 2.58 | 3.93 | 2.57 | 1.05 |
| Current Ratio | 1.05 | 1.22 | 1.06 | 1.05 | 1.04 | 1.09 |
Salesforce has rapidly growing revenues and increasing reinvestment in the business and exceptional EPS growth. Additionally, the company's financial statements display generally positive cash flows and healthy leverage levels. Furthermore, Salesforce has similar gross margins to its peers and just enough current assets to cover current liabilities, as shown by its current ratio of 1.09.
a Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Salesforce has a trailing twelve month P/E ratio of 70.9, compared to an average of 35.0 for the Technology sector. Based on its EPS guidance of $10.31, the company has a forward P/E ratio of 28.9. Salesforce's PEG ratio is 3.93 on the basis of the 18.0% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. In contrast, the market is likely undervaluing Salesforce in terms of its equity because its P/B ratio is 4.6 while the sector average is 7.92. The company's shares are currently trading 273.3% below their Graham number.
Salesforce Has an Average Rating of Buy:
The 42 analysts following Salesforce have set target prices ranging from $147.42 to $365.43 per share, for an average of $310.92 with a buy rating. The company is trading -9.1% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Salesforce has a very low short interest because 1.0% of the company's shares are sold short. Institutions own 83.2% of the company's shares, and the insider ownership rate stands at 2.83%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $23,624,461,672.
