Salesforce Stock Buy Hold or Sell Recommendation

CRM
 Stock
  

USD 189.89  1.17  0.61%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Salesforce is 'Buy'. Macroaxis provides Salesforce buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CRM positions. The advice algorithm takes into account all of Salesforce's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Salesforce's buy-and-hold perspective. Continue to Salesforce Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Salesforce and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Salesforce.

Execute Salesforce Buy or Sell Advice

The Salesforce recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Salesforce. Macroaxis does not own or have any residual interests in Salesforce or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Salesforce's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell SalesforceBuy Salesforce
Buy

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Actively responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Salesforce has a Risk Adjusted Performance of 0.1268, Jensen Alpha of 0.1344, Total Risk Alpha of 0.0589, Sortino Ratio of 0.0697 and Treynor Ratio of 0.1714
Macroaxis provides recommendation on Salesforce to complement and cross-verify current analyst consensus on Salesforce. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Salesforce is not overpriced, please validate all Salesforce fundamentals, including its debt to equity, total asset, and the relationship between the ebitda and earnings per share . Given that Salesforce has a number of shares shorted of 11.37 M, we advise you to double-check Salesforce market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Salesforce Trading Alerts and Improvement Suggestions

Salesforce has very high historical volatility over the last 90 days
Salesforce is unlikely to experience financial distress in the next 2 years
Salesforce has a strong financial position based on the latest SEC filings
Over 80.0% of the company shares are held by institutions such as insurance companies
Latest headline from MacroaxisInsider: Exercise or conversion by Marc Benioff of 2300 shares of Salesforce subject to Rule 16b-3

Salesforce current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Salesforce analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Salesforce analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price244.57
Target Median Price235.00
Target High Price385.00
Recommendation Mean1.80
Number Of Analyst Opinions46
Target Low Price157.33
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Salesforce Returns Distribution Density

The distribution of Salesforce's historical returns is an attempt to chart the future uncertainty of Salesforce's future price movements. The chart of the probability distribution of Salesforce stock daily returns describes the distribution of returns around its average expected value. We use Salesforce price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Salesforce returns is essential to provide solid investment advice for Salesforce stock.
Mean Return0.31Value At Risk-4.63
Potential Upside5.77Standard Deviation3.15
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Salesforce historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Salesforce Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(534 M)(595 M)(643 M)(710 M)(717 M)(773.61 M)
Depreciation Amortization and Accretion784 M982 M2.13 B2.85 B3.3 B3.56 B
Net Cash Flow or Change in Cash and Cash Equivalents936 M126 M1.48 B2.05 B(731 M)(750.24 M)
Net Cash Flow Business Acquisitions and Disposals(25 M)(5.12 B)(369 M)(1.28 B)(14.88 B)(15.27 B)
Issuance Purchase of Equity Shares650 M704 M840 M1.32 B1.29 B1.04 B
Issuance Repayment of Debt Securities(429 M)1.31 B(676 M)(127 M)6.55 B7.07 B
Net Cash Flow from Financing221 M2.01 B164 M1.19 B7.84 B8.46 B
Net Cash Flow from Investing(2.01 B)(5.31 B)(2.98 B)(3.97 B)(14.54 B)(14.92 B)
Net Cash Flow Investment Acquisitions and Disposals(1.58 B)142 M(2.4 B)(3.03 B)(1.14 B)(1.23 B)
Net Cash Flow from Operations2.74 B3.4 B4.33 B4.8 B6 B6.47 B
Effect of Exchange Rate Changes on Cash(27 M)(12 M)26 M(39 M)(33 M)(33.87 M)
Share Based Compensation997 M1.28 B1.78 B2.19 B2.78 B3 B

Salesforce Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Salesforce or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Salesforce's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Salesforce stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.13
β
Beta against DOW1.72
σ
Overall volatility
3.19
Ir
Information ratio 0.06

Salesforce Volatility Alert

Salesforce currently demonstrates below-average downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.13. However, we advise investors to further question Salesforce expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Salesforce's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Salesforce's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Salesforce Implied Volatility

Salesforce's implied volatility" href="/stock-options/CRM/Salesforce">Salesforce's implied volatility exposes the market's sentiment of Salesforce stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Salesforce's implied volatility" href="/stock-options/CRM/Salesforce">Salesforce's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Salesforce stock will not fluctuate a lot when Salesforce's options" href="/stock-options/CRM/Salesforce">Salesforce's options are near their expiration.

Salesforce Fundamentals Vs Peers

Comparing Salesforce's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Salesforce's direct or indirect competition across all of the common fundamentals between Salesforce and the related equities. This way, we can detect undervalued stocks with similar characteristics as Salesforce or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Salesforce's fundamental indicators could also be used in its relative valuation, which is a method of valuing Salesforce by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Salesforce to competition
FundamentalsSalesforcePeer Average
Return On Equity1.98 %(0.31) %
Return On Asset0.21 %(0.14) %
Profit Margin3.59 %(1.27) %
Operating Margin9.58 %(5.51) %
Current Valuation183.97 B16.62 B
Shares Outstanding985 M571.82 M
Shares Owned by Insiders3.30 %10.09 %
Shares Owned by Institutions79.77 %39.21 %
Number of Shares Shorted11.37 M4.71 M
Price to Earning105.09 X28.72 X
Price to Book3.30 X9.51 X
Price to Sales6.74 X11.42 X
Revenue27.94 B9.43 B
Gross Profit19.47 B27.38 B
EBITDA2.68 B3.9 B
Net Income1000 M570.98 M
Cash and Equivalents13.5 B2.7 B
Cash per Share13.57 X5.01 X
Total Debt14.38 B5.32 B
Debt to Equity0.24 %48.70 %
Current Ratio1.03 X2.16 X
Book Value Per Share57.98 X1.93 K
Cash Flow from Operations6.45 B971.22 M
Short Ratio1.73 X4.00 X
Earnings Per Share1.82 X3.12 X
Price to Earnings To Growth2.38 X4.89 X
Number of Employees77.81 K18.84 K
Beta1.08-0.15
Market Capitalization188.19 B19.03 B
Total Asset12.76 B29.47 B
Retained Earnings2.15 B9.33 B
Working Capital(1.27 B)1.48 B
Current Asset4.35 B9.34 B
   Exercise or conversion by Marc Benioff of 2300 shares of Salesforce subject to Rule 16b-3 [view details]

About Salesforce Buy or Sell Advice

When is the right time to buy or sell Salesforce? Buying financial instruments such as Salesforce Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Salesforce investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Accounts Payable3.43 B4.36 B5.47 B5.91 B
Receivables6.17 B7.79 B9.74 B10.51 B

Use Investing Ideas to Build Portfolios

In addition to having Salesforce in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Management Thematic Idea Now

Management
Management Theme
Companies providing management services to businesses. The Management theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Management Theme or any other thematic opportunities.
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Continue to Salesforce Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Salesforce information on this page should be used as a complementary analysis to other Salesforce's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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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
-0.94
Market Capitalization
188.9 B
Quarterly Revenue Growth YOY
0.24
Return On Assets
0.0021
Return On Equity
0.0198
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.