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

BIT:1MSFT • US5949181045

Current stock price

360.75 EUR
-7.75 (-2.1%)
Last:

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

8

1. 1MSFT.MI Profitability Analysis

1.1 Basic Checks

  • 1MSFT had positive earnings in the past year.
  • 1MSFT had a positive operating cash flow in the past year.
  • Each year in the past 5 years 1MSFT has been profitable.
  • In the past 5 years 1MSFT always reported a positive cash flow from operatings.
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

  • The Return On Assets of 1MSFT (17.93%) is better than 90.76% of its industry peers.
  • The Return On Equity of 1MSFT (30.51%) is better than 86.55% of its industry peers.
  • With an excellent Return On Invested Capital value of 21.86%, 1MSFT belongs to the best of the industry, outperforming 92.44% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for 1MSFT is significantly above the industry average of 13.78%.
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

  • Looking at the Profit Margin, with a value of 39.04%, 1MSFT belongs to the top of the industry, outperforming 97.48% of the companies in the same industry.
  • 1MSFT's Profit Margin has improved in the last couple of years.
  • 1MSFT has a better Operating Margin (46.67%) than 96.64% of its industry peers.
  • 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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8

2. 1MSFT.MI Health Analysis

2.1 Basic Checks

  • 1MSFT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
  • 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

  • An Altman-Z score of 8.70 indicates that 1MSFT is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 8.70, 1MSFT belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
  • 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 64.71% 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 53.78% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Altman-Z 8.7
ROIC/WACC2.08
WACC10.52%
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.
  • Looking at the Current ratio, with a value of 1.39, 1MSFT is in line with its industry, outperforming 48.74% of the companies in the same industry.
  • A Quick Ratio of 1.38 indicates that 1MSFT should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.38, 1MSFT is in line with its industry, outperforming 51.26% of the companies in the same 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.
  • 1MSFT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.86% yearly.
  • 1MSFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.67%.
  • The Revenue has been growing by 14.52% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, 1MSFT will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.94% on average per year.
  • 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 Y24.06%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
EPS Next 5Y18.94%
Revenue Next Year17.49%
Revenue Next 2Y16.61%
Revenue Next 3Y16.48%
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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

  • Based on the Price/Earnings ratio of 27.43, the valuation of 1MSFT can be described as expensive.
  • 1MSFT's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MSFT is cheaper than 61.34% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of 1MSFT to the average of the S&P500 Index (27.47), we can say 1MSFT is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 21.76, 1MSFT is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, 1MSFT is valued a bit cheaper than 62.18% of the companies in the same industry.
  • 1MSFT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 27.43
Fwd PE 21.76
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

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, 1MSFT is valued a bit cheaper than the industry average as 60.50% of the companies are valued more expensively.
  • 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 40.47
EV/EBITDA 17.12
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

  • 1MSFT's 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 18.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)1.45
EPS Next 2Y19.21%
EPS Next 3Y18.63%

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5

5. 1MSFT.MI Dividend Analysis

5.1 Amount

  • 1MSFT has a yearly dividend return of 0.87%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.84, 1MSFT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, 1MSFT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.87%

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

  • 1MSFT pays out 21.19% of its income as dividend. This is a sustainable payout ratio.
  • 1MSFT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.19%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
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 (4/23/2026, 7:00:00 PM)

360.75

-7.75 (-2.1%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-29
Inst Owners75.75%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.68T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.23
Price Target514.72 (42.68%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.87%
Yearly Dividend2.75
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)1.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)0.12%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)-0.79%
PT rev (3m)-5.38%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE 27.43
Fwd PE 21.76
P/S 10.26
P/FCF 40.47
P/OCF 19.52
P/B 8.01
P/tB 12.48
EV/EBITDA 17.12
EPS(TTM)13.15
EY3.65%
EPS(NY)16.58
Fwd EY4.59%
FCF(TTM)8.91
FCFY2.47%
OCF(TTM)18.48
OCFY5.12%
SpS35.18
BVpS45.01
TBVpS28.9
PEG (NY)1.14
PEG (5Y)1.45
Graham Number115.405 (-68.01%)
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 8.7
F-Score6
WACC10.52%
ROIC/WACC2.08
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 Y24.06%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
EPS Next 5Y18.94%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.49%
Revenue Next 2Y16.61%
Revenue Next 3Y16.48%
Revenue Next 5Y16.18%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year55.69%
EBIT Next 3Y29%
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 Fundamental Analysis FAQ

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

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


What is the valuation status of MICROSOFT CORP (1MSFT.MI) stock?

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


How profitable is MICROSOFT CORP (1MSFT.MI) stock?

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


What is the valuation of MICROSOFT CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for MICROSOFT CORP (1MSFT.MI) is 27.43 and the Price/Book (PB) ratio is 8.01.


How financially healthy is MICROSOFT CORP?

The financial health rating of MICROSOFT CORP (1MSFT.MI) is 8 / 10.