1. Financial Health Check
- Revenue: $37.90B
- Net Income: $6.20B
- Net Margin: 16.35%
- Revenue Growth (3yr CAGR): N/A (Need historical data)
- ROE (Return on Equity): N/A (Missing Equity)
- ROIC (Return on Invested Capital): [ROIC (Return on Invested Capital)]
- Debt/Equity: N/A (Missing Liabilities)
- Free Cash Flow Yield: [Free Cash Flow Yield]
- Free Cash Flow Trend: [Free Cash Flow Trend]
2. Financial Trends
3. Historical Data
| Year | Revenue | Net Income | Gross Profit | Op. Cash Flow |
|---|---|---|---|---|
| 2025 | 37.90B | 6.20B | 29.25B | 13.09B |
| 2024 | 34.86B | 4.14B | 26.32B | 10.23B |
| 2023 | 31.35B | 208.00M | 22.99B | 7.11B |
| 2022 | 26.49B | 1.44B | 19.47B | 6.00B |
| 2021 | 21.25B | 4.07B | 15.81B | 4.80B |
4. Competitive Advantage (Moat)
- Type of Moat: Network Effect & Switching Costs
- Strength: Wide
- Description: The company emphasizes the "deeply unified platform" as a key differentiator, suggesting high switching costs. The Data Cloud also benefits from a network effect as usage increases its intelligence and value. Agentforce is driving higher usage of other Salesforce products, creating a halo effect.
5. Management Quality
- CEO: Marc Benioff
- Capital Allocation: Share repurchases and dividends, reinvestment in growth opportunities like Agentforce and Data Cloud, and leaning on partner ecosystem for implementations.
- Tone: Optimistic
- Key Quotes:
- "This is the year of digital labor and it is going to be the year where every Trailblazer is going to become an Agentblazer."
- "Our goal is to be the number one provider of digital labor in the world."
6. Growth Prospects
- Total Addressable Market (TAM): [Size and Growth Rate]
- Market Share: [Current share and potential to gain]
- New Products/Services: [Pipeline]
7. Scuttlebutt & Soft Data
- Customer Reviews: [Trends in customer satisfaction]
- Employee Feedback: [Glassdoor ratings, turnover]
- Channel Checks: [Insights from suppliers or distributors]
8. Valuation
- P/E Ratio: [Current vs. Historical vs. Peers]
- EV/EBITDA: [Current vs. Historical vs. Peers]
- DCF Fair Value: [Estimate]
9. Risks
- [Risk 1: Foreign exchange headwinds impacting revenue.]
- [Risk 2: Professional services business acting as a headwind to growth.]
- [Risk 3: Slower growth in the exploration base in FY'26]
10. Checklist
- Do I understand the business model?
- Is the balance sheet healthy?
- Is management aligned with shareholders?
- Is the valuation reasonable?
- Is there a clear catalyst?