Salesforce.com, Inc. shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● For a short-term investment strategy, the company has poor fundamentals.
Strengths
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The group usually releases upbeat results with huge surprise rates.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The tendency within the weekly time frame is positive above the technical support level at 162.62 USD
Weaknesses
● The stock is close to a major daily resistance at USD 197.72, which should be gotten rid of so as to gain new appreciation potential.
● The company sustains low margins.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● Based on current prices, the company has particularly high valuation levels.
● With an expected P/E ratio at 12718.91 and 341.15 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● For the past year, analysts have significantly revised downwards their profit estimates.
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Salesforce.com, Inc. is the world leader supplier of Customer Relationship Management (CRM) software on request. Net sales by activity break down as follows:
- online subscriptions sale (92.6%): applications for computerizing the sale forces, optimizing the commercial data processing, managing the call centres, managing the relationship with the partners, etc.;
- professional services (7.4%): consulting, implementation and training services.
Net sales are distributed geographically as follows: Americas (67.8%), Europe (22.8%) and Asia/Pacific (9.4%).