Fundamental analysis · SEC EDGAR · TTM through 31/07/2026

Fundamental analysis of Salesforce, Inc.

CRM · NYSE · Technology

Fundamental quality

ATTRACTIVE

79

out of 100

Salesforce, Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 25.2%) with wide margins (net margin 22%) and a business that keeps growing (14.1% a year). On fundamental quality it scores 79 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its financial strength (net debt 3.03× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Salesforce is the world leader in customer-management software (CRM): cloud tools companies use for sales, marketing and customer service. It sells by subscription, giving it recurring revenue.

What will shape its future

  • The growth of its subscriptions and its ability to sell more products to existing customers.
  • Monetizing artificial intelligence within its products.
  • Improving its margins after years of acquisitions and pressure to be more profitable.

Breakdown by area

I.Growth
74

EPS growth: 17% · Revenue growth: 14.1%

II.Profitability
91

Net margin: 22% · ROE: 25.2% · ROIC: 9.8%

III.Financial health
73

Net debt/EBITDA: 3.03x · FCF: 34.5%

Source: SEC EDGAR · TTM through 31/07/2026

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its financial strength drags it down the most.

Versus its sector

Percentile against the other 100 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 67%
ROEbeats 61%
Growthbeats 51%
Cash generationbeats 84%
Less debtbeats 12%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Salesforce, Inc. strengths

  • Excellent free-cash-flow generation (FCF margin of 34.5%): profit turns into real cash.
  • High gross margin (77.3%), pointing to pricing power.
  • Outstanding return on equity (ROE of 25.2%): it puts shareholder capital to good use.
  • High net margin (22%): the business is clearly profitable.

Salesforce, Inc. risks and weaknesses

  • Its net debt has grown over the period.

Salesforce, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
202121,2524,0724,091-3,518
202226,4921,4445,2835,132
202331,3522086,3133,585
202434,8574,1369,498954
202537,8956,19712,434-415
202641,5257,45714,4027,112

Between 2021 and 2026, revenue went from $21,252M to $41,525M (+95%) and net income went from $4,072M to $7,457M (+83%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended July 31, 2026, versus the half-year ended July 31, 2025 (SEC filings):

  • Revenue+12%
  • Net income+64.3%

What changed with the July 31, 2026 results

Compared with the previous close (April 30, 2026), this is what moved in its accounts:

  • Quality score7879
  • Net margin18.7%22%
  • ROE23.4%25.2%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$1.66

per share, yearly

21.3% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Salesforce, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Salesforce, Inc. a good company to invest in?

In terms of business quality, Salesforce, Inc. scores 79 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Salesforce, Inc. a profitable company?

Very. Salesforce, Inc. shows a net margin of 22% and an ROE of 25.2%, typical of a highly profitable business.

Does Salesforce, Inc. have a lot of debt?

Yes, its leverage is high: net debt is 3.03 times its EBITDA, and it has been rising.

Is Salesforce, Inc. growing?

Its revenue has grown 14.1% annualized in recent years and its earnings per share 17%, and without interruption since 2021.

Does Salesforce, Inc. generate cash?

Yes. It converts about 34.5% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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