MICROSOFT CORP (1MSFT.MI) Fundamental Analysis & Valuation

BIT:1MSFT • US5949181045

355.05 EUR
+3.15 (+0.9%)
Last: Mar 6, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This 1MSFT.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

1MSFT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 116 industry peers in the Software industry. 1MSFT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1MSFT is growing strongly while it is still valued neutral. This is a good combination! These ratings could make 1MSFT a good candidate for growth and quality investing.


Dividend Valuation Growth Profitability Health

8

1. 1MSFT.MI Profitability Analysis

1.1 Basic Checks

  • In the past year 1MSFT was profitable.
  • 1MSFT had a positive operating cash flow in the past year.
  • Each year in the past 5 years 1MSFT has been profitable.
  • Each year in the past 5 years 1MSFT had a positive operating cash flow.
1MSFT.MI Yearly Net Income VS EBIT VS OCF VS FCF1MSFT.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

1.2 Ratios

  • 1MSFT has a Return On Assets of 17.93%. This is amongst the best in the industry. 1MSFT outperforms 90.52% of its industry peers.
  • The Return On Equity of 1MSFT (30.51%) is better than 87.93% of its industry peers.
  • The Return On Invested Capital of 1MSFT (21.86%) is better than 94.83% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1MSFT is significantly above the industry average of 12.58%.
Industry RankSector Rank
ROA 17.93%
ROE 30.51%
ROIC 21.86%
ROA(3y)17.07%
ROA(5y)17.9%
ROE(3y)32.52%
ROE(5y)36.88%
ROIC(3y)22.94%
ROIC(5y)23.52%
1MSFT.MI Yearly ROA, ROE, ROIC1MSFT.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • With an excellent Profit Margin value of 39.04%, 1MSFT belongs to the best of the industry, outperforming 95.69% of the companies in the same industry.
  • In the last couple of years the Profit Margin of 1MSFT has grown nicely.
  • 1MSFT has a better Operating Margin (46.67%) than 97.41% of its industry peers.
  • 1MSFT's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 68.59%, 1MSFT is in line with its industry, outperforming 40.52% of the companies in the same industry.
  • In the last couple of years the Gross Margin of 1MSFT has remained more or less at the same level.
Industry RankSector Rank
OM 46.67%
PM (TTM) 39.04%
GM 68.59%
OM growth 3Y2.75%
OM growth 5Y4.26%
PM growth 3Y-0.49%
PM growth 5Y3.14%
GM growth 3Y0.21%
GM growth 5Y0.31%
1MSFT.MI Yearly Profit, Operating, Gross Margins1MSFT.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. 1MSFT.MI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1MSFT is creating value.
  • 1MSFT has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, 1MSFT has less shares outstanding
  • The debt/assets ratio for 1MSFT has been reduced compared to a year ago.
1MSFT.MI Yearly Shares Outstanding1MSFT.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
1MSFT.MI Yearly Total Debt VS Total Assets1MSFT.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B

2.2 Solvency

  • 1MSFT has an Altman-Z score of 8.49. This indicates that 1MSFT is financially healthy and has little risk of bankruptcy at the moment.
  • 1MSFT's Altman-Z score of 8.49 is amongst the best of the industry. 1MSFT outperforms 87.93% of its industry peers.
  • The Debt to FCF ratio of 1MSFT is 1.30, which is an excellent value as it means it would take 1MSFT, only 1.30 years of fcf income to pay off all of its debts.
  • 1MSFT's Debt to FCF ratio of 1.30 is fine compared to the rest of the industry. 1MSFT outperforms 67.24% of its industry peers.
  • 1MSFT has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
  • 1MSFT has a Debt to Equity ratio of 0.23. This is comparable to the rest of the industry: 1MSFT outperforms 53.45% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Altman-Z 8.49
ROIC/WACC1.98
WACC11.02%
1MSFT.MI Yearly LT Debt VS Equity VS FCF1MSFT.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B

2.3 Liquidity

  • 1MSFT has a Current Ratio of 1.39. This is a normal value and indicates that 1MSFT is financially healthy and should not expect problems in meeting its short term obligations.
  • 1MSFT has a Current ratio of 1.39. This is comparable to the rest of the industry: 1MSFT outperforms 47.41% of its industry peers.
  • A Quick Ratio of 1.38 indicates that 1MSFT should not have too much problems paying its short term obligations.
  • The Quick ratio of 1MSFT (1.38) is comparable to the rest of the industry.
  • 1MSFT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.39
Quick Ratio 1.38
1MSFT.MI Yearly Current Assets VS Current Liabilites1MSFT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. 1MSFT.MI Growth Analysis

3.1 Past

  • 1MSFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.83%, which is quite impressive.
  • Measured over the past years, 1MSFT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.86% on average per year.
  • The Revenue has grown by 16.67% in the past year. This is quite good.
  • Measured over the past years, 1MSFT shows a quite strong growth in Revenue. The Revenue has been growing by 14.52% on average per year.
EPS 1Y (TTM)23.83%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%28.17%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%

3.2 Future

  • 1MSFT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.94% yearly.
  • Based on estimates for the next years, 1MSFT will show a quite strong growth in Revenue. The Revenue will grow by 16.18% on average per year.
EPS Next Y24.51%
EPS Next 2Y19.37%
EPS Next 3Y18.79%
EPS Next 5Y18.94%
Revenue Next Year17.53%
Revenue Next 2Y16.53%
Revenue Next 3Y16.49%
Revenue Next 5Y16.18%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
1MSFT.MI Yearly Revenue VS Estimates1MSFT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 200B 400B 600B
1MSFT.MI Yearly EPS VS Estimates1MSFT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40

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4

4. 1MSFT.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • 1MSFT is valuated quite expensively with a Price/Earnings ratio of 26.82.
  • 1MSFT's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MSFT is cheaper than 68.10% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.29. 1MSFT is around the same levels.
  • Based on the Price/Forward Earnings ratio of 21.22, the valuation of 1MSFT can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MSFT indicates a somewhat cheap valuation: 1MSFT is cheaper than 63.79% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, 1MSFT is valued at the same level.
Industry RankSector Rank
PE 26.82
Fwd PE 21.22
1MSFT.MI Price Earnings VS Forward Price Earnings1MSFT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 61.21% of the companies in the same industry are more expensive than 1MSFT, based on the Enterprise Value to EBITDA ratio.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as 1MSFT.
Industry RankSector Rank
P/FCF 39.57
EV/EBITDA 16.58
1MSFT.MI Per share data1MSFT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of 1MSFT may justify a higher PE ratio.
  • 1MSFT's earnings are expected to grow with 18.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)1.42
EPS Next 2Y19.37%
EPS Next 3Y18.79%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. 1MSFT.MI Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.91%, 1MSFT is not a good candidate for dividend investing.
  • 1MSFT's Dividend Yield is a higher than the industry average which is at 0.73.
  • With a Dividend Yield of 0.91, 1MSFT pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.91%

5.2 History

  • On average, the dividend of 1MSFT grows each year by 10.24%, which is quite nice.
Dividend Growth(5Y)10.24%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • 21.19% of the earnings are spent on dividend by 1MSFT. This is a low number and sustainable payout ratio.
  • The dividend of 1MSFT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.19%
EPS Next 2Y19.37%
EPS Next 3Y18.79%
1MSFT.MI Yearly Income VS Free CF VS Dividend1MSFT.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B
1MSFT.MI Dividend Payout.1MSFT.MI Dividend Payout, showing the Payout Ratio.1MSFT.MI Dividend Payout.PayoutRetained Earnings

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1MSFT.MI Fundamentals: All Metrics, Ratios and Statistics

MICROSOFT CORP

BIT:1MSFT (3/6/2026, 7:00:00 PM)

355.05

+3.15 (+0.9%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners75.56%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.64T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts86.36
Price Target518.8 (46.12%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly Dividend2.74
Dividend Growth(5Y)10.24%
DP21.19%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.54%
Min EPS beat(2)2.62%
Max EPS beat(2)10.46%
EPS beat(4)4
Avg EPS beat(4)6.15%
Min EPS beat(4)2.62%
Max EPS beat(4)10.46%
EPS beat(8)7
Avg EPS beat(8)3.96%
EPS beat(12)11
Avg EPS beat(12)4.71%
EPS beat(16)12
Avg EPS beat(16)3.16%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)1.09%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)1.54%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)0.13%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)-4.63%
PT rev (3m)-4.74%
EPS NQ rev (1m)1.31%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)1.4%
EPS NY rev (3m)6.45%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.98%
Valuation
Industry RankSector Rank
PE 26.82
Fwd PE 21.22
P/S 10.03
P/FCF 39.57
P/OCF 19.08
P/B 7.84
P/tB 12.21
EV/EBITDA 16.58
EPS(TTM)13.24
EY3.73%
EPS(NY)16.73
Fwd EY4.71%
FCF(TTM)8.97
FCFY2.53%
OCF(TTM)18.6
OCFY5.24%
SpS35.41
BVpS45.31
TBVpS29.09
PEG (NY)1.09
PEG (5Y)1.42
Graham Number116.18
Profitability
Industry RankSector Rank
ROA 17.93%
ROE 30.51%
ROCE 26.63%
ROIC 21.86%
ROICexc 26.24%
ROICexgc 38.24%
OM 46.67%
PM (TTM) 39.04%
GM 68.59%
FCFM 25.34%
ROA(3y)17.07%
ROA(5y)17.9%
ROE(3y)32.52%
ROE(5y)36.88%
ROIC(3y)22.94%
ROIC(5y)23.52%
ROICexc(3y)31.07%
ROICexc(5y)36.94%
ROICexgc(3y)52.63%
ROICexgc(5y)67.5%
ROCE(3y)28.11%
ROCE(5y)28.75%
ROICexgc growth 3Y-18.02%
ROICexgc growth 5Y-15.78%
ROICexc growth 3Y-12.77%
ROICexc growth 5Y-10.15%
OM growth 3Y2.75%
OM growth 5Y4.26%
PM growth 3Y-0.49%
PM growth 5Y3.14%
GM growth 3Y0.21%
GM growth 5Y0.31%
F-Score6
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Debt/EBITDA 0.51
Cap/Depr 222.84%
Cap/Sales 27.2%
Interest Coverage 250
Cash Conversion 89.25%
Profit Quality 64.91%
Current Ratio 1.39
Quick Ratio 1.38
Altman-Z 8.49
F-Score6
WACC11.02%
ROIC/WACC1.98
Cap/Depr(3y)197.12%
Cap/Depr(5y)186.6%
Cap/Sales(3y)18.11%
Cap/Sales(5y)15.73%
Profit Quality(3y)78.85%
Profit Quality(5y)83.54%
High Growth Momentum
Growth
EPS 1Y (TTM)23.83%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%28.17%
EPS Next Y24.51%
EPS Next 2Y19.37%
EPS Next 3Y18.79%
EPS Next 5Y18.94%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.53%
Revenue Next 2Y16.53%
Revenue Next 3Y16.49%
Revenue Next 5Y16.18%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year55.57%
EBIT Next 3Y28.92%
EBIT Next 5Y23.22%
FCF growth 1Y14.78%
FCF growth 3Y3.2%
FCF growth 5Y9.62%
OCF growth 1Y56.37%
OCF growth 3Y15.21%
OCF growth 5Y17.55%

MICROSOFT CORP / 1MSFT.MI FAQ

What is the ChartMill fundamental rating of MICROSOFT CORP (1MSFT.MI) stock?

ChartMill assigns a fundamental rating of 7 / 10 to 1MSFT.MI.


Can you provide the valuation status for MICROSOFT CORP?

ChartMill assigns a valuation rating of 4 / 10 to MICROSOFT CORP (1MSFT.MI). This can be considered as Fairly Valued.


What is the profitability of 1MSFT stock?

MICROSOFT CORP (1MSFT.MI) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for 1MSFT stock?

The Price/Earnings (PE) ratio for MICROSOFT CORP (1MSFT.MI) is 26.82 and the Price/Book (PB) ratio is 7.84.


Can you provide the dividend sustainability for 1MSFT stock?

The dividend rating of MICROSOFT CORP (1MSFT.MI) is 5 / 10 and the dividend payout ratio is 21.19%.