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 AnalystBuy
Overall Rating7.7/10
Generated at:2026-04-17 17:42:42
Analysis based on 5 financial reports for periods ending: 2026-01-31, 2025-10-31, 2025-07-31, 2025-04-30, 2025-01-31. Real-time stock price data as of 2026-04-17. Data includes fundamental metrics (revenue, net income, margins, ratios) and valuation multiples (P/E, P/B, P/S). Data appears complete for the analysis performed.
Overview

Salesforce, Inc. (CRM) is a global leader in CRM technology and cloud-based enterprise software with a mature, large-cap profile. The company demonstrates solid financial health with consistent revenue growth and excellent profitability, though liquidity metrics require attention. The stock appears undervalued relative to its growth profile and fundamental target price.

Valuation
8/10
Profitability
9/10
Financial health
6/10
Operation Advice
  • Buy at current price of $182.14 with a 12-month fundamental price target range of $190-$215 and a target price of $202.
  • Monitor the company's short-term liquidity (current ratio of 0.76) in future reports.
  • The stock is near the lower end of its recent trading range ($164.96-$235.74), presenting a favorable entry point.

Valuation

P/E TTM
19.98
P/E LYR
32.37
P/B MRQ
2.52
P/S TTM
--
AI Analysis
  • Valuation analysis indicates the stock is attractively priced with a P/E (TTM) of 19.88x and a PEG ratio below 1.0, suggesting undervaluation relative to earnings growth. A blended fundamental approach supports a target price of $202, implying potential upside from the current price.
  • P/E (TTM) is 19.88x based on trailing twelve months' earnings.
  • P/E (Forward/Dynamic) is 32.37x, reflecting market expectations for future earnings growth.
  • P/B ratio is 2.51x, reasonable for a high-margin, high-return software company.
  • P/S ratio (TTM) is 3.59x, typical for a mature, profitable SaaS leader with ~18% net margin.
  • The stock has traded between approximately $164.96 and $235.74 over the last 60 days, with current price near the lower end.
  • Earnings-based target using TTM EPS of $7.80 and forward P/E of 25x gives $195.00.
  • Sales-based valuation supports a price in the $180-$190 range.
  • PEG ratio is approximately 0.88 (19.88 / 22.6), below 1.0, suggesting the stock may be undervalued relative to its earnings growth rate.
  • A reasonable 12-month fundamental price range is $190 - $215 with a target price of $202.
  • At the current price of $182.14, the stock appears undervalued relative to this target and its growth profile.
Valuation trend

Profitability

ROE TTM
12.40%
Net margin
17.96%
Gross margin
77.68%
Total revenue
41.52B
AI Analysis
  • Salesforce exhibits excellent and improving profitability with high gross margins, expanding net margins, and strong returns on capital. Earnings growth outpaces revenue growth, indicating operational efficiency gains.
  • Revenue for FY 2026 reached $41.52B, a 9.58% year-over-year increase, continuing steady high-single-digit growth.
  • Net income grew 20.33% YoY to $7.46B, indicating effective cost management and operating leverage.
  • The company maintains exceptionally high gross margins (~77.7%), characteristic of a software platform.
  • Net margin expanded to 17.96% in FY 2026 from 16.35% the prior year, demonstrating successful translation of top-line growth to the bottom line.
  • Return on Equity (ROE-TTM) is 12.40%, showing healthy and efficient use of shareholder equity.
  • Return on Assets (ROA-TTM) is 6.93%, indicating efficient use of company assets.
  • The upward trend in ROE from 10.26% (FY 2025) is positive.
  • Diluted EPS grew from $6.36 (FY 2025) to $7.80 (FY 2026), a 22.6% increase, outpacing revenue growth and highlighting operational efficiency gains.
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
  • The company demonstrates solid financial health with consistent revenue growth, though the current ratio of 0.76 indicates potential short-term liquidity pressure. The debt-to-asset ratio is manageable, and the balance sheet is supported by predictable subscription revenue and robust profitability.
  • Revenue for FY 2026 reached $41.52B, a 9.58% year-over-year increase, continuing a multi-year trend of steady growth.
  • Net income grew 20.33% YoY to $7.46B.
  • The current ratio of 0.76 is below the ideal threshold of 1.0, suggesting potential short-term liquidity pressure relative to current liabilities.
  • The debt-to-asset ratio of 47.34% is manageable for a software company with strong cash flows.
  • The absence of a quick ratio is noted but not critical given the nature of its assets.
  • The balance sheet is leveraged but supported by highly predictable subscription revenue and robust profitability.
  • The low current ratio is a point for monitoring but not an immediate red flag given the company's market position and cash generation.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset40.57%38.48%37.15%36.92%47.34%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.061.071.120.980.76