Is Salesforce Stock a Good Investment?

Salesforce Investment Advice

CRM

To provide specific investment advice or recommendations on Salesforce stock, we recommend investors consider the following general factors when evaluating Salesforce. This will help you to make an informed decision on whether to include Salesforce in one of your diversified portfolios:

Examine Salesforce's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Salesforce's leadership team and their track record. Good management can help Salesforce navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Application Software space and any emerging trends that could impact Salesforce's business and its evolving consumer preferences.
Compare Salesforce's performance and market position to its competitors. Analyze how Salesforce is positioned in terms of product offerings, innovation, and market share.
Check if Salesforce pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Salesforce's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Salesforce stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Salesforce is a good investment.

Sell

Buy

Macroaxis provides recommendation on Salesforce to complement and cross-verify current analyst consensus on Salesforce. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Salesforce is not overpriced, please validate all Salesforce fundamentals, including its debt to equity, market capitalization, and the relationship between the ebitda and earnings per share . Given that Salesforce has a price to earning of 291.69 X, we advise you to double-check Salesforce market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance	Solid	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Almost mirrors the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Salesforce Stock

Researching Salesforce's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 82.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.27. Salesforce recorded earning per share (EPS) of 5.74. The entity last dividend was issued on the 18th of September 2024. The firm had 4:1 split on the 18th of April 2013.

To determine if Salesforce is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Salesforce's research are outlined below:

	Salesforce is unlikely to experience financial distress in the next 2 years
	Salesforce has a strong financial position based on the latest SEC filings
	Over 82.0% of the company shares are held by institutions such as insurance companies
	On 8th of October 2024 Salesforce paid $ 0.4 per share dividend to its current shareholders
	Latest headline from finance.yahoo.com: Disposition of 548 shares by Sabastian Niles of Salesforce at 341.98 subject to Rule 16b-3

Salesforce Quarterly Cash And Short Term Investments

12.64 Billion

Salesforce uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Salesforce. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Salesforce's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	6th of March 2024 Upcoming Quarterly Report	View
	29th of May 2024 Next Financial Report	View
	31st of January 2024 Next Fiscal Quarter End	View
	6th of March 2024 Next Fiscal Year End	View
	31st of October 2023 Last Quarter Report	View
	31st of January 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Salesforce's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Salesforce's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2014-05-20	2014-04-30	0.1	0.11	0.01	10
2014-02-27	2014-01-31	0.06	0.07	0.01	16
2012-08-23	2012-07-31	0.1	0.11	0.01	10
2012-02-23	2012-01-31	0.1	0.11	0.01	10
2011-11-17	2011-10-31	0.08	0.09	0.01	12
2011-08-18	2011-07-31	0.07	0.08	0.01	14
2009-05-21	2009-04-30	0.03	0.04	0.01	33
2009-02-25	2009-01-31	0.02	0.03	0.01	50

Know Salesforce's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Salesforce is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Salesforce backward and forwards among themselves. Salesforce's institutional investor refers to the entity that pools money to purchase Salesforce's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Norges Bank	2024-06-30	10.2 M
Bank Of America Corp	2024-06-30	10.1 M
Nuveen Asset Management, Llc	2024-06-30	9.6 M
Northern Trust Corp	2024-09-30	9.5 M
Wellington Management Company Llp	2024-06-30	8.9 M
Goldman Sachs Group Inc	2024-06-30	8.3 M
Legal & General Group Plc	2024-06-30	8.3 M
T. Rowe Price Associates, Inc.	2024-06-30	8.1 M
Ubs Asset Mgmt Americas Inc	2024-09-30	8.1 M
Vanguard Group Inc	2024-09-30	86.9 M
Blackrock Inc	2024-06-30	74.6 M

Note, although Salesforce's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Salesforce's market capitalization trends

The company currently falls under 'Mega-Cap' category with a total capitalization of 315.47 B.

Market Cap

258.72 Billion

Salesforce's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.09	0.09
Return On Capital Employed	0.07	0.07
Return On Assets	0.04	0.04
Return On Equity	0.07	0.07

The company has Net Profit Margin of 0.15 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.2 %, which entails that for every 100 dollars of revenue, it generated $0.2 of operating income.

Determining Salesforce's profitability involves analyzing its financial statements and using various financial metrics to determine if Salesforce is a good buy. For example, gross profit margin measures Salesforce's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Salesforce's profitability and make more informed investment decisions.

Salesforce's Earnings Breakdown by Geography

Evaluate Salesforce's management efficiency

Salesforce has Return on Asset of 0.0471 % which means that on every $100 spent on assets, it made $0.0471 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0973 %, implying that it generated $0.0973 on every 100 dollars invested. Salesforce's management efficiency ratios could be used to measure how well Salesforce manages its routine affairs as well as how well it operates its assets and liabilities. As of the 30th of November 2024, Return On Tangible Assets is likely to grow to 0.09. Also, Return On Capital Employed is likely to grow to 0.07. At this time, Salesforce's Intangible Assets are very stable compared to the past year. As of the 30th of November 2024, Return On Tangible Assets is likely to grow to 0.09, while Deferred Long Term Asset Charges is likely to drop about 21 M.

	Last Reported	Projected for Next Year
Book Value Per Share	61.24	64.30
Tangible Book Value Per Share	5.90	6.20
Enterprise Value Over EBITDA	30.24	28.73
Price Book Value Ratio	4.59	8.71
Enterprise Value Multiple	30.24	28.73
Price Fair Value	4.59	8.71
Enterprise Value	50 B	31.3 B

The strategic initiatives led by Salesforce's management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.

Dividend Yield

0.0048

Forward Dividend Yield

0.0048

Forward Dividend Rate

1.6

Beta

1.288

Basic technical analysis of Salesforce Stock

As of the 30th of November, Salesforce has the Semi Deviation of 1.08, risk adjusted performance of 0.1746, and Coefficient Of Variation of 452.3. Salesforce technical analysis provides you with a way to harness past market data to determine a pattern that measures the direction of the company's future prices. Please validate Salesforce downside deviation, jensen alpha, as well as the relationship between the Jensen Alpha and downside variance to decide if Salesforce is priced more or less accurately, providing market reflects its prevalent price of 329.99 per share. Given that Salesforce has jensen alpha of 0.2326, we advise you to double-check Salesforce's current market performance to make sure the company can sustain itself at a future point.

Salesforce's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Salesforce insiders, such as employees or executives, is commonly permitted as long as it does not rely on Salesforce's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Salesforce insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Sundeep Reddy over a month ago Disposition of tradable shares by Sundeep Reddy of Salesforce at 264.7813 subject to Rule 16b-3
		Parker Harris over a month ago Disposition of 4200 shares by Parker Harris of Salesforce at 118.04 subject to Rule 16b-3
		Parker Harris over two months ago Disposition of 872 shares by Parker Harris of Salesforce subject to Rule 16b-3
		Parker Harris over three months ago Disposition of 1400 shares by Parker Harris of Salesforce at 118.04 subject to Rule 16b-3
		Marc Benioff over six months ago Disposition of 2310 shares by Marc Benioff of Salesforce at 299.917 subject to Rule 16b-3
		Parker Harris over six months ago Disposition of 4200 shares by Parker Harris of Salesforce at 118.04 subject to Rule 16b-3
		Sundeep Reddy over six months ago Acquisition by Sundeep Reddy of 2964 shares of Salesforce subject to Rule 16b-3
		Marc Benioff over six months ago Disposition of 10887 shares by Marc Benioff of Salesforce at 303.2819 subject to Rule 16b-3

Salesforce's Outstanding Corporate Bonds

Salesforce issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Salesforce uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Salesforce bonds can be classified according to their maturity, which is the date when Salesforce has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	SALESFORCECOM INC Corp Bond US79466LAK08	View
	SALESFORCECOM INC Corp Bond US79466LAJ35	View
	SALESFORCECOM INC Corp Bond US79466LAM63	View
	SALESFORCECOM INC Corp Bond US79466LAL80	View
	SALESFORCE INC 37 Corp Bond US79466LAF13	View
	SALESFORCECOM INC Corp Bond US79466LAH78	View

View All Salesforce Corporate Bonds

Understand Salesforce's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Salesforce's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1746
	Market Risk Adjusted Performance	0.3454
	Mean Deviation	1.31
	Semi Deviation	1.08
	Downside Deviation	1.39
	Coefficient Of Variation	452.3
	Standard Deviation	1.74
	Variance	3.04
	Information Ratio	0.1422
	Jensen Alpha	0.2326
	Total Risk Alpha	0.0844
	Sortino Ratio	0.1778
	Treynor Ratio	0.3354
	Maximum Drawdown	9.98
	Value At Risk	(1.91)
	Potential Upside	3.18
	Downside Variance	1.94
	Semi Variance	1.16
	Expected Short fall	(1.53)
	Skewness	0.7536
	Kurtosis	1.71

	Risk Adjusted Performance	0.1746
	Market Risk Adjusted Performance	0.3454
	Mean Deviation	1.31
	Semi Deviation	1.08
	Downside Deviation	1.39
	Coefficient Of Variation	452.3
	Standard Deviation	1.74
	Variance	3.04
	Information Ratio	0.1422
	Jensen Alpha	0.2326
	Total Risk Alpha	0.0844
	Sortino Ratio	0.1778
	Treynor Ratio	0.3354
	Maximum Drawdown	9.98
	Value At Risk	(1.91)
	Potential Upside	3.18
	Downside Variance	1.94
	Semi Variance	1.16
	Expected Short fall	(1.53)
	Skewness	0.7536
	Kurtosis	1.71

Consider Salesforce's intraday indicators

Salesforce intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Salesforce stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	50222.47
	Daily Balance Of Power	(0)
	Rate Of Daily Change	1.0
	Day Median Price	329.62
	Day Typical Price	329.74
	Price Action Indicator	0.36
	Period Momentum Indicator	(0.02)
	Relative Strength Index	81.3

Salesforce Corporate Filings

F4	26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
13A	14th of November 2024 An amended filing to the original Schedule 13G	View Verify
8K	5th of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
13A	16th of October 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934	View Verify

Salesforce time-series forecasting models is one of many Salesforce's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Salesforce's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Salesforce Stock media impact

Far too much social signal, news, headlines, and media speculation about Salesforce that are available to investors today. That information is available publicly through Salesforce media outlets and privately through word of mouth or via Salesforce internal channels. However, regardless of the origin, that massive amount of Salesforce data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Salesforce news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Salesforce relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Salesforce's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Salesforce alpha.

Salesforce Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Salesforce can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Salesforce Historical Investor Sentiment

Investor biases related to Salesforce's public news can be used to forecast risks associated with an investment in Salesforce. The trend in average sentiment can be used to explain how an investor holding Salesforce can time the market purely based on public headlines and social activities around Salesforce. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Salesforce's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Salesforce and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Salesforce news discussions. The higher the estimate score, the more favorable the investor's outlook on Salesforce.

Salesforce Corporate Directors

John Roos	Independent Director	Profile
Parker Harris	Co-Founder, Chief Technology Officer, Director	Profile
Susan Wojcicki	Independent Director	Profile
Alan Hassenfeld	Independent Director	Profile

When determining whether Salesforce is a strong investment it is important to analyze Salesforce's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Salesforce's future performance. For an informed investment choice regarding Salesforce Stock, refer to the following important reports: