Salesforce, Inc. (NYSE: CRM)

Sector: Technology Industry: Software - Application CIK: 0001108524
Market Cap 248.88 Bn
P/B 4.15
P/E 34.46
P/S 6.17
ROIC (Qtr) 9.57
Div Yield % 0.79
Rev 1y % (Qtr) 8.63
Total Debt (Qtr) 11.14 Bn
Debt/Equity (Qtr) 0.19

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 13.50B provides robust 1.21x coverage of total debt 11.14B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 8.98B provide 15.92x coverage of short-term debt 564M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 36.90B provides 3.31x coverage of total debt 11.14B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 12.89B exceeds capital expenditure of 607M by 21.24x, indicating strong organic growth funding capability.
  • Retained earnings of 20.67B provide full 1.95x coverage of long-term debt 10.57B, indicating strong internal capital position.

Bear case

  • Operating cash flow of 13.50B barely covers its investment activities of (2.82B), with a coverage ratio of -4.79, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 13.50B provides thin coverage of dividend payments of (1.58B) with a -8.55 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (2.82B) provide weak support for R&D spending of 5.79B, which is -0.49x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 8.98B provide limited coverage of acquisition spending of (3.25B), which is -2.76x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 13.50B provides insufficient coverage of deferred revenue obligations of 15B, which is 0.90x, raising concerns about future service delivery capabilities.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 281.21 Bn 33.75 6.55 10.73 Bn
2 CRM Salesforce, Inc. 248.88 Bn 34.46 6.17 11.14 Bn
3 SHOP Shopify Inc. 217.18 Bn 121.94 20.30 1.12 Bn
4 UBER Uber Technologies, Inc 182.87 Bn 10.99 3.69 12.19 Bn
5 INTU Intuit Inc. 182.36 Bn 44.28 9.38 6.78 Bn
6 NOW ServiceNow, Inc. 151.53 Bn 87.54 11.96 2.40 Bn
7 ADBE Adobe Inc. 146.69 Bn 21.08 6.33 6.64 Bn
8 ADP Automatic Data Processing Inc 108.05 Bn 26.12 5.17 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.63 2.68
EV to Cash from Ops. EV/CFO 18.50 13.34
EV to Debt EV to Debt 22.42 57.60
EV to EBIT EV/EBIT 28.13 19.20
EV to EBITDA EV/EBITDA 21.40 15.11
EV to Free Cash Flow [EV/FCF] EV/FCF 19.37 14.78
EV to Market Cap EV to Market Cap 1.00 -93.16
EV to Revenue EV/Rev 6.19 4.63
Price to Book Value [P/B] P/B 4.15 4.29
Price to Earnings [P/E] P/E 34.46 -132.44
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.57 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 21.80 4.25
Dividend per Basic Share Div per Share (Qtr) 1.65 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 12.12 2.52
Interest Coverage Int. cover (Qtr) 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 6.76 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 12.27 9,763.58
Dividend Growth (1y) % Div 1y % (Qtr) 37.33 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 21.68 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 10.51 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 25.16 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 25.16 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 22.93 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 8.60 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.52 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.42 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.11 0.02
Cash Ratio Cash Ratio (Qtr) 0.42 3.75
Current Ratio Curr Ratio (Qtr) 0.98 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.19 0.17
Interest Cover Ratio Int Coverage (Qtr) 0.00 -52.32
Times Interest Earned Times Interest Earned (Qtr) 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 30.40 -100.06
EBIT Margin % EBIT Margin % (Qtr) 22.03 -164.24
EBT Margin % EBT Margin % (Qtr) 22.03 -116.94
Gross Margin % Gross Margin % (Qtr) 77.70 58.20
Net Profit Margin % Net Margin % (Qtr) 17.90 -121.65