Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, customer relations management, or CRM, software specialist salesforce.com (NYSE: CRM ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Salesforce's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||San Francisco (1999)|
|Market Cap||$21.7 billion|
|Trailing-12-Month Revenue||$2.3 billion|
|Management||Co-Founder/Chairman/CEO Marc Benioff
CFO Graham Smith
|Return on Equity (average, past 3 years)||5%|
|Cash/Debt||$777.9 million / $557.2 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 48% of the 1,799 members who have rated Salesforce believe the stock will underperform the S&P 500 going forward.
Salesforce might have great software, but the stock is priced for perfection. I question the width of their [competitive moat] -- Can they fight off competition from Microsoft, SAP and others? I admit it might take a couple of years for the competition to catch up, but in the meantime, [Salesforce] does not seem to be cashing in all that well.
I suspect that two years from now, this will not be the darling of Wall Street that it is today. It will be just another software company -- with a down-to-earth multiple.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.