Salesforce Inc Rates High with Low PE Investor Model

Salesforce Inc (CRM) scores 62% on the Low PE Investor model, indicating moderate interest despite failing on EPS and P/E ratio. Report reveals the stock shows potential with future EPS growth and strong free cash flow.

Date: 02-03-2025

AI Rating: 5

Salesforce Inc Analysis

The analysis indicates that Salesforce Inc (CRM) has a current rating of 62% based on the Low PE Investor model. This rating highlights areas of strength despite some failures.

Earnings Per Share (EPS): The company has failed to meet expectations in EPS growth. This could be a negative concern for investors as EPS is a key indicator of profitability and company performance.

Future EPS Growth: On a positive note, the future EPS growth has passed, which suggests analysts expect better earnings performance moving forward.

Sales Growth: The stock has passed the sales growth test, indicating that revenue continues to grow. This is a strong factor that could positively influence investor sentiment.

Free Cash Flow (FCF): The report indicates that Salesforce is performing well regarding free cash flow. Strong free cash flow is important as it demonstrates the company’s ability to fund operations and invest in future growth without relying on debt.

P/E Ratio: Unfortunately, the P/E ratio test failed, which may indicate that the stock is overvalued at its current price, potentially deterring some investors seeking value.

EPS Persistence: The report reveals that the EPS persistence has passed, which suggests the company has a history of stable earnings, an attractive feature for many investors.

In summary, while Salesforce Inc shows weaknesses in EPS growth and P/E ratio, its ability to generate future growth in EPS, sales growth, and strong free cash flow could still make it an appealing investment option for various investors.

Stocks: CRM