MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis

BIT:1MSFT • US5949181045

333.9 EUR
-6.05 (-1.78%)
Last: Feb 27, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

7

Overall 1MSFT gets a fundamental rating of 7 out of 10. We evaluated 1MSFT against 112 industry peers in the Software industry. 1MSFT gets an excellent profitability rating and is at the same time showing great financial health properties. 1MSFT is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make 1MSFT suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year 1MSFT was profitable.
  • In the past year 1MSFT had a positive cash flow from operations.
  • 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 better Return On Assets (17.93%) than 89.29% of its industry peers.
  • Looking at the Return On Equity, with a value of 30.51%, 1MSFT belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
  • 1MSFT's Return On Invested Capital of 21.86% is amongst the best of the industry. 1MSFT outperforms 93.75% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for 1MSFT is significantly above the industry average of 12.70%.
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

  • 1MSFT has a better Profit Margin (39.04%) than 94.64% of its industry peers.
  • In the last couple of years the Profit Margin of 1MSFT has grown nicely.
  • Looking at the Operating Margin, with a value of 46.67%, 1MSFT belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
  • 1MSFT's Operating Margin has improved in the last couple of years.
  • 1MSFT has a Gross Margin (68.59%) which is comparable to the rest of the industry.
  • 1MSFT's Gross Margin has been stable in the last couple of years.
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. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MSFT is creating value.
  • 1MSFT has about the same amout of shares outstanding than it did 1 year ago.
  • 1MSFT has less shares outstanding than it did 5 years ago.
  • 1MSFT has a better debt/assets ratio than last year.
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 8.37. This indicates that 1MSFT is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of 1MSFT (8.37) is better than 91.07% of its industry peers.
  • 1MSFT has a debt to FCF ratio of 1.30. This is a very positive value and a sign of high solvency as it would only need 1.30 years to pay back of all of its debts.
  • 1MSFT has a Debt to FCF ratio of 1.30. This is in the better half of the industry: 1MSFT outperforms 66.07% 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.
  • With a Debt to Equity ratio value of 0.23, 1MSFT perfoms like the industry average, outperforming 52.68% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Altman-Z 8.37
ROIC/WACC2.03
WACC10.78%
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's Current ratio of 1.39 is in line compared to the rest of the industry. 1MSFT outperforms 50.00% of its industry peers.
  • 1MSFT has a Quick Ratio of 1.38. This is a normal value and indicates that 1MSFT is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.38, 1MSFT perfoms like the industry average, outperforming 51.79% of the companies in the same industry.
  • The current and quick ratio evaluation for 1MSFT is rather negative, while it does have 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. Growth

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.
  • The Earnings Per Share has been growing by 18.86% on average over the past years. This is quite good.
  • Looking at the last year, 1MSFT shows a quite strong growth in Revenue. The Revenue has grown by 16.67% in the last year.
  • 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.
  • 1MSFT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.18% yearly.
EPS Next Y24.51%
EPS Next 2Y19.37%
EPS Next 3Y18.79%
EPS Next 5Y18.94%
Revenue Next Year17.53%
Revenue Next 2Y16.55%
Revenue Next 3Y16.52%
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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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • 1MSFT is valuated quite expensively with a Price/Earnings ratio of 25.65.
  • Based on the Price/Earnings ratio, 1MSFT is valued a bit cheaper than 64.29% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.10. 1MSFT is around the same levels.
  • 1MSFT is valuated rather expensively with a Price/Forward Earnings ratio of 20.30.
  • 60.71% of the companies in the same industry are more expensive than 1MSFT, based on the Price/Forward Earnings ratio.
  • 1MSFT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.65
Fwd PE 20.3
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

  • 1MSFT's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MSFT is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 37.84
EV/EBITDA 16.28
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.
  • A more expensive valuation may be justified as 1MSFT's earnings are expected to grow with 18.79% in the coming years.
PEG (NY)1.05
PEG (5Y)1.36
EPS Next 2Y19.37%
EPS Next 3Y18.79%

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

5

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.91%, 1MSFT is not a good candidate for dividend investing.
  • In the last 3 months the price of 1MSFT has falen by -21.26%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • 1MSFT's Dividend Yield is a higher than the industry average which is at 0.73.
  • Compared to an average S&P500 Dividend Yield of 1.80, 1MSFT's dividend is way lower than the S&P500 average.
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.
  • 1MSFT's earnings are growing more than its dividend. This makes the dividend growth 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

More info and screens

Find the best dividend stocksShow peers with best dividend

MICROSOFT CORP

BIT:1MSFT (2/27/2026, 7:00:00 PM)

333.9

-6.05 (-1.78%)

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 Cap2.48T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts86.36
Price Target522.23 (56.4%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly Dividend2.73
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%
PT rev (3m)-2.83%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)1.4%
EPS NY rev (3m)6.45%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.97%
Valuation
Industry RankSector Rank
PE 25.65
Fwd PE 20.3
P/S 9.59
P/FCF 37.84
P/OCF 18.25
P/B 7.49
P/tB 11.67
EV/EBITDA 16.28
EPS(TTM)13.02
EY3.9%
EPS(NY)16.45
Fwd EY4.93%
FCF(TTM)8.82
FCFY2.64%
OCF(TTM)18.3
OCFY5.48%
SpS34.82
BVpS44.56
TBVpS28.61
PEG (NY)1.05
PEG (5Y)1.36
Graham Number114.25
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 8.37
F-Score6
WACC10.78%
ROIC/WACC2.03
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 2Y16.55%
Revenue Next 3Y16.52%
Revenue Next 5Y16.18%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year57.72%
EBIT Next 3Y28.9%
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 25.65 and the Price/Book (PB) ratio is 7.49.


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%.