Salesforce, Inc.

  • Market Cap: Large Cap
  • Industry: Software Products
  • ISIN: US79466L3024
USD
195.38
0.07 (0.04%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Intuit, Inc.
Microsoft Corp.
Adobe, Inc.
Salesforce, Inc.
Oracle Corp.
ServiceNow, Inc.
Palo Alto Networks, Inc.
Shopify, Inc.
Synopsys, Inc.
Activision Blizzard, Inc.
VMware, Inc.

Why is Salesforce, Inc. ?

1
Company has a low Debt to Equity ratio (avg) at times
2
Healthy long term growth as Net Sales has grown by an annual rate of 15.31% and Operating profit at 139.21%
3
The company has declared Positive results for the last 9 consecutive quarters
  • OPERATING CASH FLOW(Y) Highest at USD 13,169 MM
  • ROCE(HY) Highest at 11.2%
  • INTEREST COVERAGE RATIO(Q) Highest at 5,517.91
4
With ROE of 11.29%, it has a expensive valuation with a 4.33 Price to Book Value
  • The stock is trading at a premium compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of -26.07%, its profits have risen by 16.4% ; the PEG ratio of the company is 2.1
5
High Institutional Holdings at 85.96%
  • These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
  • Their stake has increased by 1.12% over the previous quarter.
stock-recommendationReal-Time Research Report

Verdict Report

How much should you buy?

  1. Overall Portfolio exposure to Salesforce, Inc. should be less than 10%
  2. Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Salesforce, Inc. for you?

Medium Risk, Low Return

Absolute
Risk Adjusted
Volatility
Salesforce, Inc.
-29.9%
0.26
32.47%
S&P 500
14.9%
0.70
20.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
14.73%
EBIT Growth (5y)
108.38%
EBIT to Interest (avg)
19.62
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.13
Sales to Capital Employed (avg)
0.53
Tax Ratio
17.76%
Dividend Payout Ratio
25.15%
Pledged Shares
0
Institutional Holding
85.75%
ROCE (avg)
7.33%
ROE (avg)
7.36%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
3.05
EV to EBIT
20.36
EV to EBITDA
14.74
EV to Capital Employed
3.13
EV to Sales
4.49
PEG Ratio
1.50
Dividend Yield
0.87%
ROCE (Latest)
15.37%
ROE (Latest)
12.56%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 13,502 MM

ROCE(HY)

Highest at 12.18%

INTEREST COVERAGE RATIO(Q)

Highest at 4,923.88

RAW MATERIAL COST(Y)

Fallen by -0.58% (YoY

CASH AND EQV(HY)

Highest at USD 26,695 MM

DIVIDEND PER SHARE(HY)

Highest at USD 7.89

NET SALES(Q)

Highest at USD 10,259 MM

OPERATING PROFIT(Q)

Highest at USD 3,299 MM

OPERATING PROFIT MARGIN(Q)

Highest at 32.16 %

PRE-TAX PROFIT(Q)

Highest at USD 2,513 MM

NET PROFIT(Q)

Highest at USD 2,086.83 MM

EPS(Q)

Highest at USD 2.19

-2What is not working for the Company
INTEREST(9M)

At USD 202 MM has Grown at 49.63%

Here's what is working for Salesforce, Inc.

Operating Cash Flow
Highest at USD 13,502 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio
Highest at 4,923.88
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales
Highest at USD 10,259 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (USD MM)

Operating Profit
Highest at USD 3,299 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin
Highest at 32.16 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at USD 2,513 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit
Highest at USD 2,086.83 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (USD MM)

EPS
Highest at USD 2.19
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv
Highest at USD 26,695 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share
Highest at USD 7.89
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost
Fallen by -0.58% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Salesforce, Inc.

Interest
At USD 202 MM has Grown at 49.63%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (USD MM)