Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Salesforce.com as such a stock due to the following factors:
- CRM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $451.4 million.
- CRM is up 2.5% today from today's close.
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More details on CRM:
salesforce.com, inc. provides enterprise cloud computing solutions to various businesses and industries worldwide. Currently there are 26 analysts that rate Salesforce.com a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Salesforce.com has been 7.0 million shares per day over the past 30 days. Salesforce.com has a market cap of $33.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.39 and a short float of 9.4% with 5.57 days to cover. Shares are down 3.4% year-to-date as of the close of trading on Wednesday.
rates Salesforce.com as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 37.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 67.05% to $473.09 million when compared to the same quarter last year. In addition, SALESFORCE.COM INC has also vastly surpassed the industry average cash flow growth rate of 9.58%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- Despite currently having a low debt-to-equity ratio of 0.53, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.48 is very low and demonstrates very weak liquidity.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 43.1% when compared to the same quarter one year ago, falling from -$67.72 million to -$96.91 million.
- You can view the full Salesforce.com Ratings Report.