this is a story about a big company called Salesforce. They make tools for other companies to help them talk to their customers. In this story, we look at how good Salesforce is compared to other companies that do the same thing. We look at numbers like how much money they make and how much debt they have. From those numbers, we try to figure out if Salesforce is a good company to buy things from. Read from source...
- Price to Earnings, Price to Book, and Price to Sales ratios favor growth potential, undervaluation based on book value, and undervaluation based on sales performance.
- ROE is below industry average, indicating potential inefficiency in utilizing equity.
- EBITDA and gross profit are high compared to industry average, indicating stronger profitability.
- Debt-to-equity ratio is low, indicating healthier balance between debt and equity.
- Revenue growth is low compared to industry peers.
- While the article provides an in-depth analysis of Salesforce compared to its competitors, it does not provide any action or investment recommendations.
Positive
The article highlights Salesforce's performance and compares it to its key competitors in the software industry. The positive sentiment comes from the fact that Salesforce's P/E, P/B, and P/S ratios are all low compared to industry peers, indicating potential undervaluation. The high EBITDA and gross profit levels are also positive indicators of strong financial performance.
1. Salesforce Inc (CRM): P/E: 47.09, P/B: 4.25, P/S: 7.2, ROE: 2.57%, EBITDA: $2.6 billion, Gross Profit: $6.97 billion. Salesforce appears undervalued compared to its Software industry peers based on its lower P/E, P/B, and P/S ratios. However, its low ROE may indicate lower profitability. Its high EBITDA and Gross Profit indicate robust financial performance. Watch out for its low revenue growth, which may affect future prospects.
2. SAP SE (SAP): P/E: 30.53, P/B: 5.53, P/S: 5.26, ROE: 17.74%, EBITDA: $2.1 billion, Gross Profit: $2.56 billion. SAP demonstrates favorable growth potential based on its lower P/E and P/S ratios. Its high ROE indicates efficient equity utilization to generate profits. However, its lower Gross Profit may be a concern for profitability.
3. Adobe Inc (ADBE): P/E: 39.33, P/B: 7.48, P/S: 10.58, ROE: 16.51%, EBITDA: $1.2 billion, Gross Profit: $2.78 billion. Adobe Inc seems undervalued based on its lower P/E, P/B, and P/S ratios. Its high ROE and EBITDA indicate strong profitability and robust cash flow generation. However, its low Gross Profit may be concerning for profitability.
4. Intuit Inc (INTU): P/E: 43.97, P/B: 9.08, P/S: 8.56, ROE: 17.32%, EBITDA: $1.3 billion, Gross Profit: $2.44 billion. Intuit Inc appears undervalued compared to industry peers based on its lower P/E, P/B, and P/S ratios. Its high ROE and EBITDA indicate efficient equity utilization and strong profitability. However, its lower Gross Profit may be concerning for profitability. Also, watch out for its lower revenue growth compared to industry averages.
5. Synopsys Inc (SNPS): P/E: 43.24, P/B: 7.58, P/S: 6.55, ROE: 9.82%, EBITDA: $1.1 billion, Gross Profit: $1.7 billion. Synopsys Inc indicates favorable growth potential based on its lower P/E, P/B, and P/S ratios. Its high ROE and EBITDA suggest efficient equity utilization and strong profitability. However, its lower Gross Profit may be concerning for profitability.
6. Cadence Design Systems Inc (CDNS): P/E: 53.45, P/B: 6.07, P