What is the AI rating for CRM?

Salesforce, Inc. (CRM) has an AI rating of BUY with 82% confidence, based on fundamental analysis of SEC EDGAR filings.

What are the key strengths of CRM?

Exceptional free cash flow generation at $14.4B with 34.7% FCF margin demonstrates highly profitable SaaS business model. Net income growth (20.3% YoY) significantly outpacing revenue growth (9.6% YoY) shows improving operating leverage and cost management. Strong profitability metrics with 77.7% gross margin and 18.0% net margin typical of high-quality software companies

What are the risks of investing in CRM?

Current ratio of 0.76x and quick ratio of 0.76x indicate tight working capital position and potential near-term liquidity constraints. Revenue growth deceleration at 9.6% suggests maturing market or competitive pressures in core SaaS segments. Capital intensity with $594M capex requirements limits financial flexibility despite strong FCF generation

CRM Stock Analysis - Salesforce, Inc. AI Rating & Fundamentals

Name: Salesforce, Inc. (CRM) Stock
Brand: Salesforce, Inc.
Rating: 4 (1 reviews)

Investment Thesis

Salesforce demonstrates strong fundamental health with robust profitability (18% net margin, 20.1% operating margin) and exceptional free cash flow generation (34.7% FCF margin, $14.4B absolute). Revenue growth of 9.6% YoY combined with 20.3% net income growth indicates improving operational leverage and quality earnings, supported by a solid balance sheet with 0.24x debt/equity and 25.7x interest coverage.

CRM Strengths

+ Exceptional free cash flow generation at $14.4B with 34.7% FCF margin demonstrates highly profitable SaaS business model
+ Net income growth (20.3% YoY) significantly outpacing revenue growth (9.6% YoY) shows improving operating leverage and cost management
+ Strong profitability metrics with 77.7% gross margin and 18.0% net margin typical of high-quality software companies
+ Conservative leverage with 0.24x debt/equity ratio and fortress-like interest coverage of 25.7x
+ Diluted EPS growing 22.6% YoY outpacing net income growth indicates shareholder-friendly capital allocation

CRM Risks

! Current ratio of 0.76x and quick ratio of 0.76x indicate tight working capital position and potential near-term liquidity constraints
! Revenue growth deceleration at 9.6% suggests maturing market or competitive pressures in core SaaS segments
! Capital intensity with $594M capex requirements limits financial flexibility despite strong FCF generation
! 33 insider form 4 filings in 90 days may indicate elevated insider selling or option exercises that warrants monitoring

Key Metrics to Watch

* Revenue growth trajectory and quarterly sequential trends to confirm growth stabilization vs deceleration
* Operating margin expansion sustainability and whether 20.1% level is durable or temporary
* Free cash flow conversion and working capital management to ensure current ratio does not deteriorate further
* Operating cash flow trends relative to capex spending to sustain 34.7% FCF margin
* Insider transaction patterns and magnitude to assess confidence or potential concerns by management

CRM Financial Metrics

Revenue

$41.5B

Net Income

$7.5B

EPS (Diluted)

$7.80

Free Cash Flow

$14.4B

Total Assets

$112.3B

Cash Position

$7.3B

CRM Profitability Ratios

Gross Margin 77.7%

Operating Margin 20.1%

Net Margin 18.0%

ROE 12.6%

ROA 6.6%

FCF Margin 34.7%

CRM Balance Sheet & Liquidity

Current Ratio

0.76x

Quick Ratio

0.76x

Debt/Equity

0.24x

Debt/Assets

47.3%

Interest Coverage

25.71x

Long-term Debt