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CRM : NYSE : Technology
$79.42 -0.41 | -0.51%
Today's Range: 78.94 - 80.10
Avg. Daily Volume: 3,788,800
08/31/16 - 4:01 PM ET

Financial Analysis

SALESFORCE.COM INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. SALESFORCE.COM INC has weak liquidity. Currently, the Quick Ratio is 0.64 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 31.85% 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 FY16 Q1 FY15
Net Sales ($mil)1916.61511.17
EBITDA ($mil)184.05121.07
EBIT ($mil)51.28-6.33
Net Income ($mil)38.764.09

Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)2031.191019.02
Total Assets ($mil)12817.2710365.68
Total Debt ($mil)1513.561420.76
Equity ($mil)5584.264235.2

Profitability Q1 FY16 Q1 FY15
Gross Profit Margin80.1681.79
EBITDA Margin9.68.01
Operating Margin2.68-0.42
Sales Turnover0.550.55
Return on Assets-0.09-1.55
Return on Equity-0.22-3.81
Debt Q1 FY16 Q1 FY15
Current Ratio0.740.66
Interest Expense22.0116.68
Interest Coverage2.33-0.38

Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)677.5656.0
Div / share0.00.0
Book value / share8.246.46
Institutional Own % n/a n/a
Avg Daily Volume3752948.03750069.0


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 9.73 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 7.52. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CRM NM Peers 59.58   CRM 28.22 Peers 23.28

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CRM 61.19 Peers 33.35   CRM NA Peers 0.85

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CRM 9.73 Peers 7.52   CRM 92.00 Peers 27.93

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.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

CRM is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CRM 7.68 Peers 5.94   CRM 25.00 Peers 5.44

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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