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Salesforce.com Inc (CRM)
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Upturn Advisory Summary
01/21/2025: CRM (5-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit 79.13% | Avg. Invested days 71 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 4.0 | Stock Returns Performance 4.0 |
Profits based on simulation | Last Close 01/21/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 310.60B USD | Price to earnings Ratio 53.47 | 1Y Target Price 393.96 |
Price to earnings Ratio 53.47 | 1Y Target Price 393.96 | ||
Volume (30-day avg) 5836923 | Beta 1.29 | 52 Weeks Range 211.10 - 368.58 | Updated Date 01/20/2025 |
52 Weeks Range 211.10 - 368.58 | Updated Date 01/20/2025 | ||
Dividends yield (FY) 0.48% | Basic EPS (TTM) 6.07 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 15.45% | Operating Margin (TTM) 20.18% |
Management Effectiveness
Return on Assets (TTM) 4.71% | Return on Equity (TTM) 9.73% |
Valuation
Trailing PE 53.47 | Forward PE 29.07 | Enterprise Value 309270920000 | Price to Sales(TTM) 8.52 |
Enterprise Value 309270920000 | Price to Sales(TTM) 8.52 | ||
Enterprise Value to Revenue 8.32 | Enterprise Value to EBITDA 28.38 | Shares Outstanding 957000000 | Shares Floating 929232000 |
Shares Outstanding 957000000 | Shares Floating 929232000 | ||
Percent Insiders 2.64 | Percent Institutions 82.36 |
AI Summary
Salesforce.com Inc. - A Comprehensive Overview
Company Profile:
History and Background:
- Founded in 1999 by Marc Benioff, Parker Harris, and Dave Moellenhoff.
- Pioneered cloud-based customer relationship management (CRM) software.
- Initial public offering (IPO) in 2004.
- Acquired numerous companies over the years, expanding its product and service portfolio.
Core Business Areas:
- Sales Cloud: CRM platform for sales automation, lead management, and opportunity tracking.
- Service Cloud: Customer service platform for case management, knowledge base, and live chat.
- Marketing Cloud: Marketing automation platform for email marketing, social media management, and campaign analytics.
- Platform & Technologies: Tools and services for building custom applications on the Salesforce platform.
Leadership Team and Corporate Structure:
- CEO: Marc Benioff
- CFO: Amy Weaver
- President and COO: Bret Taylor
- Strong leadership team with extensive experience in technology and business.
- Decentralized corporate structure with various product and service units.
Top Products and Market Share:
- Sales Cloud: Market leader in CRM with over 35% market share globally.
- Service Cloud: Dominant player in customer service software with over 40% market share globally.
- Marketing Cloud: Leading marketing automation platform with significant market share.
- Compares favorably to competitors like Microsoft Dynamics 365 and Oracle Siebel.
Total Addressable Market:
- Global CRM market estimated at $86.9 billion in 2023.
- Salesforce targets large enterprises and small to medium-sized businesses (SMBs).
- Significant growth potential in emerging markets and new industries.
Financial Performance:
- Revenue consistently growing over the past years, reaching $31.44 billion in FY23.
- Net income and EPS also increasing, demonstrating profitability.
- Strong cash flow and healthy balance sheet.
Dividends and Shareholder Returns:
- No dividend payments currently.
- Total shareholder return of over 100% in the past 5 years.
Growth Trajectory:
- Strong historical growth, with revenue increasing at a CAGR of 24% over the past 5 years.
- Future growth projected to continue, driven by cloud adoption, product innovation, and strategic acquisitions.
- Recent product launches and strategic initiatives targeting new markets and industries.
Market Dynamics:
- Cloud computing market experiencing rapid growth.
- Increasing demand for CRM and customer service solutions.
- Technological advancements like AI and machine learning shaping the industry.
- Salesforce well-positioned to capitalize on these trends.
Competitors:
- Microsoft Dynamics 365
- Oracle Siebel
- SAP CRM
- Adobe Marketing Cloud
- HubSpot
- Strong competition, but Salesforce remains a leader in the market.
Key Challenges and Opportunities:
- Challenges:
- Intense competition from established and emerging players.
- Maintaining innovation and keeping pace with technological advancements.
- Managing integrations and data security across its vast platform.
- Opportunities:
- Expanding into new markets and industries.
- Introducing new products and services leveraging AI and machine learning.
- Acquiring strategic companies to enhance its offerings.
Recent Acquisitions:
- Slack (2020): $27.7 billion acquisition aiming to integrate collaboration and communication into the Salesforce platform.
- Tableau (2019): $15.7 billion acquisition to strengthen data analytics and visualization capabilities.
- MuleSoft (2018): $6.5 billion acquisition to enhance integration and API management solutions.
AI-Based Fundamental Rating:
- Rating: 8/10
- Justification: Strong financial performance, leading market position, and significant growth potential.
- Financial health: Excellent
- Market position: Leader in CRM and customer service
- Future prospects: Strong growth expected
Sources and Disclaimers:
- Data and information gathered from Salesforce.com Inc. website, annual reports, investor presentations, and industry sources.
- This analysis is for informational purposes only and should not be considered investment advice.
About Salesforce.com Inc
Exchange NYSE | Headquaters San Francisco, CA, United States | ||
IPO Launch date 2004-06-23 | Co-Founder, Chairman & CEO Mr. Marc R. Benioff | ||
Sector Technology | Industry Software - Application | Full time employees 72682 | Website https://www.salesforce.com |
Full time employees 72682 | Website https://www.salesforce.com |
Salesforce, Inc. provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale. In addition, its platform offering comprise a flexible platform that enables companies of various sizes, locations, and industries to build business workflow and apps with customer; online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, an intelligent productivity platform. The company's marketing services enables companies to plan, personalize, automate, and optimize customer marketing journey, connecting interaction, and connected products; and commerce services, which empowers shopping experience across various customer touchpoint, such as mobile, web, social, and stores and provides click-to-code tools that offers customers to build and deploy solutions. Further, its analytics offering includes Tableau, an end-to-end analytics solution for range of enterprise use cases and intelligent analytics with AI models, spot trends, predict outcomes, creates summaries, timely recommendations, and take action from any device; and integration service including MuleSoft, which provides building blocks to deliver end-to-end and connected experiences. Additionally, the company provides data cloud, a hyperscale data engine native to Salesforce; vertical services to meet the needs of customers in industries, such as financial services, healthcare and life sciences, manufacturing and automotive and government; and offers salesforce starter for small and medium-sized businesses. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California.
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