Salesforce Piotroski F Score

CRM
 Stock
  

USD 144.56  2.44  1.66%   

This module uses fundamental data of Salesforce to approximate its Piotroski F score. Salesforce F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Salesforce. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Salesforce financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Continue to Salesforce Altman Z Score, Salesforce Correlation, Salesforce Valuation, as well as analyze Salesforce Alpha and Beta and Salesforce Hype Analysis.
  
Total Debt is expected to hike to about 15.1 B this year. Debt Current is expected to hike to about 761.9 M this year. Salesforce Accounts Payable Turnover is relatively stable at the moment as compared to the past year. The company's current value of Accounts Payable Turnover is estimated at 5.53. Return on Investment is expected to hike to 1.05 this year, although the value of Accrued Expenses Turnover will most likely fall to 7.97.
At this time, it appears that Salesforce's Piotroski F Score is Strong. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
7.0
Piotroski F Score - Strong
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsIncreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)DecreasingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeIncreaseFocus
7
Long Term Debt Over Assets ChangeHigher LeverageFocus
8
Change In Outstending SharesDecreaseFocus
9
Change in Gross MarginIncreaseFocus

Salesforce Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Salesforce is to make sure Salesforce is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Salesforce's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Salesforce's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares Diluted804.5 M974 M
Significantly Down
Increasing
Slightly volatile
Weighted Average Shares789.4 M955 M
Significantly Down
Increasing
Slightly volatile
Return on Average Assets1.931.7881
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations6.5 BB
Significantly Up
Increasing
Slightly volatile
Current Liabilities23.5 B21.8 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities40 B37.1 B
Significantly Up
Increasing
Slightly volatile
Gross Margin82.6873.4788
Moderately Up
Decreasing
Stable
Total Debt15.1 B14 B
Significantly Up
Increasing
Slightly volatile
Asset Turnover0.480.3281
Way Up
Decreasing
Slightly volatile
Current Assets24.7 B22.9 B
Significantly Up
Increasing
Slightly volatile
Total Assets102.7 B95.2 B
Significantly Up
Increasing
Slightly volatile

Salesforce F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Salesforce's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Salesforce in a much-optimized way.

About Salesforce Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Weighted Average Shares

789.4 Million

Salesforce Weighted Average Shares is relatively stable at the moment as compared to the past year. The company's current value of Weighted Average Shares is estimated at 789.4 Million

Salesforce Current Valuation Drivers

We derive many important indicators used in calculating different scores of Salesforce from analyzing Salesforce's financial statements. These drivers represent accounts that assess Salesforce's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Salesforce's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee4.4 K31.71 K2.57 K71.74 K19.64 K21.19 K
Revenue Per Employee361.38 K379.49 K348.94 K374.41 K360.23 K331.94 K
Average Assets18.49 B26.53 B42.89 B59.21 B84.05 B90.68 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA661.85 M1.55 B1.16 B3.14 B2.21 B2.38 B
Earnings Before Interest Taxes and Depreciation Amortization USD1.2 B1.97 B2.84 B5.41 B4.83 B5.21 B
Earnings before Tax420 M983 M706 M2.56 B1.53 B1.65 B
Average Equity8.9 B13.72 B25.19 B38.7 B53.32 B57.53 B
Enterprise Value82.05 B117.83 B163.93 B208.5 B238.39 B257.21 B
Free Cash Flow2.2 B2.8 B3.69 B4.09 B5.28 B5.7 B
Invested Capital2.81 B4.52 B10.8 B16.51 B22.68 B24.48 B
Invested Capital Average1.67 B4.46 B10.38 B14.26 B20.18 B21.77 B
Market Capitalization82.28 B116.26 B161.71 B206.39 B229.14 B247.23 B
Tangible Asset Value13.7 B15.27 B23.92 B34.15 B35.95 B38.79 B
Working Capital(483 M)(572 M)1.12 B4.16 B1.06 B1.15 B

Salesforce ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Salesforce's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Salesforce's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Salesforce Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Salesforce's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Salesforce using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Salesforce based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California. Salesforce operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 78634 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Salesforce without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Salesforce

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Salesforce position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Salesforce will appreciate offsetting losses from the drop in the long position's value.

Moving together with Salesforce

+0.69ADSKAutodesk Downward RallyPairCorr
The ability to find closely correlated positions to Salesforce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Salesforce when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Salesforce - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Salesforce to buy it.
The correlation of Salesforce is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Salesforce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Salesforce moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Salesforce can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Salesforce Altman Z Score, Salesforce Correlation, Salesforce Valuation, as well as analyze Salesforce Alpha and Beta and Salesforce Hype Analysis. You can also try Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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When running Salesforce price analysis, check to measure Salesforce's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Salesforce is operating at the current time. Most of Salesforce's value examination focuses on studying past and present price action to predict the probability of Salesforce's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Salesforce's price. Additionally, you may evaluate how the addition of Salesforce to your portfolios can decrease your overall portfolio volatility.
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Is Salesforce's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Salesforce. If investors know Salesforce will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Salesforce listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.55) 
Market Capitalization
144.6 B
Quarterly Revenue Growth YOY
0.14
Return On Assets
0.0035
Return On Equity
0.0048
The market value of Salesforce is measured differently than its book value, which is the value of Salesforce that is recorded on the company's balance sheet. Investors also form their own opinion of Salesforce's value that differs from its market value or its book value, called intrinsic value, which is Salesforce's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Salesforce's market value can be influenced by many factors that don't directly affect Salesforce's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Salesforce's value and its price as these two are different measures arrived at by different means. Investors typically determine Salesforce value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Salesforce's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.