CRM Stock: A Cash Gusher At A Marked-Down Price
Salesforce (CRM) stock trades around $171, offering a 9.9% free cash flow yield versus the S&P 500 median of 4.1%, despite a 33% decline over the past year. The company generated $42.83 billion in revenue (up 11% YoY) with a 22% operating margin. Management highlights strong AI adoption, processing 28.6 trillion tokens (up 152% QoQ) and achieving a $1 billion ARR run-rate for Agentforce. However, the market remains skeptical due to lagging overall bookings and softness in Tableau and Commerce Cloud. The key catalyst is management's promise to re-accelerate organic revenue in the second half of FY27. FY27 free cash flow growth guidance was lowered to 4-5%, but the current yield provides a valuation cushion. The article debates whether the stock is a buying opportunity or correctly priced for a slowdown.
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