0R15 9025.0 0.0% 0R1E 9410.0 0.0% 0M69 None None% 0R2V 247.99 9682.643% 0QYR 1567.5 0.0% 0QYP 439.3701 -2.9016% 0RUK None None% 0RYA 1597.0 1.2682% 0RIH 195.55 0.0% 0RIH 191.4 -2.1222% 0R1O 225.5 9683.0803% 0R1O None None% 0QFP 10475.8496 107.8542% 0M2Z 252.573 0.2373% 0VSO 33.0 -7.3164% 0R1I None None% 0QZI 622.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 222.05 -4.1318%
Company Overview: Salesforce.com, Inc. (NYSE: CRM) is a global leader in customer relationship management (CRM) technology, bridging gaps between companies and customers. Its customer 360 platform connects customer data across systems, apps, and devices to provide a single source of truth, allowing businesses to sell, service, and conduct business anywhere. It also offers solutions including Service Cloud for customer care, Marketing Cloud for digital marketing campaigns, Commerce Cloud for e-commerce, and MuleSoft for data integration.
CRM Details
Key Takeaways from FY22 (ended January 31, 2022)
Revenues & Gross Profit Key Highlights; Analysis by Kalkine Group
Recent Developments
Segment Wise Results FY22
Balance Sheet & Liquidity Position
Key Metrics: CRM's EBITDA and net margins in FY22 were 14.5% and 5.5%, up from the industry medians of 7.7% and -5.6%, respectively. The company operates at a debt/equity ratio of 0.18x as of FY22 compared to the industry norm of 0.26x.
Profitability and Leverage Profile; Analysis by Kalkine Group
Top 10 Shareholders: The top 10 shareholders together form around 35.91% of the total shareholding, while the top 4 constitute the maximum holding. The Vanguard Group, Inc. and Fidelity Management & Research Company LLC, hold the maximum stake in the company at 7.73% and 6.66%, respectively, as also highlighted in the chart below:
Top 10 Shareholders; Analysis by Kalkine Group
Risk Analysis
Outlook
Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation (Illustrative)
Source: Analysis by Kalkine Group
*% Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation: The stock has fallen 24.05% in the past six months. The stock is currently leaning towards the lower band of its 52-week range of USD 184.44 to USD 311.75. We have valued the stock using the Price/Earnings-based illustrative relative valuation method and arrived at a target price with an upside of low twenties (in percentage terms). Given its market dominance in the application software industry, high-profit margins, and global market presence, we believe CRM can trade at a premium to its peers' average. We have taken peers like Adobe, Inc. (NASDAQ: ADBE), SAP SE (NYSE: SAP), and others. Considering the robust top-line performance, strong cash flows, new collaborations, optimistic outlook, improvement in headcount, associated risks, and current valuation, we give a "Buy" recommendation on the stock at the current price of USD 203.90, down 2.39%, as of March 02, 2022, at 10:40 AM ET. Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
CRM Technical Chart, Data Source: REFINITIV
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decision should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.
Technical Indicators Defined
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.
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