SALESFORCE.COM INC's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SALESFORCE.COM INC has weak liquidity. Currently, the Quick Ratio is 0.50 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 34.79% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||1511.17||1226.77|
|Net Income ($mil)||4.09||-96.91|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||1019.02||879.12|
|Total Assets ($mil)||10365.68||8641.34|
|Total Debt ($mil)||1420.76||1658.28|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||81.58||83.78|
|Return on Assets||-1.55||-3.02|
|Return on Equity||-3.81||-8.31|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||656.0||614.0|
|Div / share||0.0||0.0|
|Book value / share||6.46||5.12|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4883040.0||4147058.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 11.18 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 6.39. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SALESFORCE.COM INC seems to be trading at a premium to investment alternatives within the industry.
|CRM NM||Peers 55.25||CRM 33.62||Peers 28.80|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
CRM's P/E is negative making this valuation measure meaningless.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
CRM is trading at a premium to its peers.
|CRM 76.82||Peers 41.51||CRM NA||Peers 0.92|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
CRM is trading at a significant premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|CRM 11.18||Peers 6.39||CRM 43.19||Peers 167.00|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CRM is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CRM is expected to significantly trail its peers on the basis of its earnings growth rate.
|CRM 8.37||Peers 6.48||CRM 28.44||Peers 15.03|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
CRM is trading at a significant premium to its industry.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CRM has a sales growth rate that significantly exceeds its peers.
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