Salesforce Inc Scores 62% in Low PE Investor Model

Salesforce Inc receives a 62% rating in the Low PE Investor model. While future EPS growth and sales growth pass criteria, current EPS and P/E ratio fail. This mixed report may influence stock prices as investors weigh growth potential against current valuations.

Date: 16-03-2025

AI Rating: 5

Stock Performance Summary

Salesforce Inc (CRM) has been evaluated under the Low PE Investor model, indicating a mixed but somewhat promising outlook for investors. The stock achieved a rating of 62%, suggesting that while it meets some criteria, it has areas of concern that could hinder its attractiveness.

Earnings Per Share (EPS) Growth

The report indicates that Salesforce's current EPS growth is a FAIL, which could be a red flag for potential investors. A failing EPS growth metric often leads to concerns about a company's profitability and ability to return profits to shareholders. Therefore, this could negatively impact investor confidence and, subsequently, the stock price.

Future Earnings Per Share Growth

Conversely, the future EPS growth is rated as a PASS. This indicates that projected earnings growth may improve, which could attract investors looking for long-term value. If these projections come to fruition, it may positively influence the stock price in the future.

Sales Growth

Sales growth has also passed, highlighting the company’s ability to generate increasing revenues. This could offset some concerns raised by current EPS performance and offer a more optimistic outlook for the company's financial health moving forward.

P/E Ratio

Salesforce's P/E ratio received a FAIL, which signifies that the stock might be overvalued in comparison to its earnings. A high P/E ratio can deter value-focused investors, thus potentially pushing the stock price down.

Free Cash Flow

The Free Cash Flow was rated as a PASS, which is a positive signal as it suggests that Salesforce has adequate liquidity for growth initiatives, dividend payments, or share repurchases, which are all favorable from an investment perspective.

Conclusion

Overall, while Salesforce Inc shows positive indicators in terms of future growth and sales, its current EPS and P/E ratio present challenges that could affect stock prices. Investors might be cautious given the mixed signals, which could lead to volatility in the stock market concerning CRM.

Stocks: CRM