Salesforce, Inc.(CRM) - Stock detail

Salesforce, Inc.

US
CRM
Salesforce, Inc.(Listing date: 06/23/2004)

Salesforce was incorporated in Delaware in February 1999. The company is a global leader in customer relationship management technology that brings companies and their customers together. Through the power of data, artificial intelligence, CRM, and trust, the company enables companies of all sizes and industries to connect with customers. The company's AI-powered Customer 360 platform connects customer data across systems, apps, and devices, uniting sales, service, marketing, commerce, and IT teams to create a complete view of the customer.

AI Value AnalystHold
Overall Rating5.3/10
Generated at:2026-06-03 17:40:52
Analysis based on 5 financial reports covering periods: 2026-01-31, 2025-10-31, 2025-07-31, 2025-04-30, 2025-01-31. Current price data as of 2026-06-03 close. Analysis includes comprehensive financial metrics, valuation ratios, and profitability indicators.
Overview

Salesforce demonstrates strong profitability with consistent revenue growth and expanding margins, but faces liquidity concerns and presents a balanced valuation picture. The company's financial health shows mixed signals with excellent profitability offset by short-term liquidity pressure.

Valuation
5/10
Profitability
8/10
Financial health
3/10
Operation Advice
  • Hold current positions and monitor the company's progress in managing short-term liabilities.
  • Look for more attractive entry points during market pullbacks.
  • The current price of $190.61 is at the lower end of the fundamental-based 12-month target range of $185.00 - $230.00.

Valuation

P/E TTM
20.50
P/E LYR
32.37
P/B MRQ
4.80
P/S TTM
--
AI Analysis
  • Valuation presents a complex picture with the current price at the lower end of a reasonable target range. The stock has experienced significant volatility, and valuation metrics suggest a balanced risk/reward profile.
  • The trailing twelve months (TTM) P/E ratio is 20.50, while the forward (dynamic) P/E is higher at 32.37, reflecting market expectations for future earnings growth.
  • The P/B ratio of 4.80 is elevated compared to market average but typical for high-margin, asset-light software companies.
  • The P/S ratio of 3.76 is considered reasonable within the enterprise software peer group given the company's high margins and growth profile.
  • The stock experienced significant volatility in the provided 60-day window, trading between approximately $164 and $210.
  • Based on TTM EPS of $7.80 and applying a P/E range of 18x to 22x, a reasonable fair value range is $140.40 to $171.60.
  • A more growth-oriented valuation using forward P/E as a proxy suggests a range of $218.40 to $273.00.
  • Synthesizing these approaches, a fundamental-based 12-month target price range is $185.00 - $230.00.
  • The current price of $190.61 is at the lower end of this target range.
Valuation trend

Profitability

ROE TTM
12.40%
Net margin
17.96%
Gross margin
77.68%
Total revenue
41.52B
AI Analysis
  • Salesforce demonstrates robust and improving profitability metrics with strong revenue growth, expanding margins, and solid returns on capital.
  • Revenue growth has been steady, with latest annual revenue reaching $41.52B, representing a 9.58% year-over-year increase.
  • The company maintains an exceptionally high and stable gross margin of 77.68%, characteristic of a pure-play software business.
  • The net margin expanded to 17.96%, up from 16.35% the prior year.
  • Net income of $7.46B grew by 20.33% year-over-year, outpacing revenue growth and highlighting effective cost management.
  • Return on Equity (ROE) of 12.40% and Return on Assets (ROA) of 6.93% are solid and reflect efficient use of capital.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--2.53%5.60%9.10%12.40%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue37.90B9.83B20.07B30.32B41.52B

Financial health

Debt/Asset
47.34%
Current ratio
0.76
Quick ratio
--
Cash ratio
0.76
AI Analysis
  • Financial health shows a mixed picture with strong profitability offset by liquidity concerns and moderate leverage.
  • The current ratio of 0.76 is a significant concern, indicating potential short-term liquidity pressure as current liabilities exceed current assets.
  • The debt-to-asset ratio of 47.34% is at a moderate level, suggesting balanced use of leverage common for mature tech companies.
  • Strong and growing profitability helps offset the weak liquidity ratio, as consistent earnings generation supports the company's ability to meet obligations.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset40.57%38.48%37.15%36.92%47.34%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.061.071.120.980.76