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CRM Salesforce, Inc. - Fundamental Analysis

NEUTRAL
CRM Stock | Fundamental Analysis & Investment Insights
NASDAQ Technology Software - Application
Current Price
$253.62
Analyst Target
$330.06
+30.1% Upside
52W High
$367.09
52W Low
$221.96

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AI Analysis

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Confidence Score
78%
Analysis Accuracy
Salesforce (CRM) demonstrates strong financial health with a Piotroski F-Score of 7/9 and an exceptionally high Altman Z-Score of 368995789824.0, indicating negligible bankruptcy risk and robust operational stability. Profitability metrics are solid, with high gross and operating margins, strong earnings growth, and a conservative debt/equity ratio of 0.19. However, the stock trades at a premium valuation (P/E 33.91 vs. sector average 113.62) despite below-sector revenue growth (8.6% vs. 19.58%), and insider selling activity raises caution. While analysts project a bullish target price of $330.06, current technical trends are bearish and near-term price performance has lagged.

Key Strengths

Exceptionally high Altman Z-Score indicates virtually no financial distress risk
Strong Piotroski F-Score of 7/9 reflects high financial health and earnings quality
High profitability with gross margin of 77.73%, operating margin of 23.86%, and ROE of 12.18%
Low leverage with Debt/Equity ratio of 0.19, well below sector average of 0.78
Consistent earnings beat history: 3 out of last 4 quarters, with long-term positive EPS surprises

Key Risks

Current Ratio of 0.98 and Quick Ratio of 0.79 indicate potential short-term liquidity pressure
Valuation premium: P/E of 33.91 is high relative to earnings growth (PEG unavailable but implied as elevated)
Revenue growth (8.6% YoY) lags significantly behind sector average of 19.58%
Insider selling activity: $31.61M in sales with no buys in the last 6 months
Bearish technical trend (0/100) and 1-year price return of -22.8% despite strong earnings growth
AI Fair Value Estimate
Based on comprehensive analysis
$220.66
-13.0% below current price

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