MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis
Europe - BIT:1MSFT - US5949181045 - Common Stock
444.4 EUR
+0.5 (+0.11%)
Taking everything into account, 1MSFT scores 7 out of 10 in our fundamental rating. 1MSFT was compared to 110 industry peers in the Software industry. 1MSFT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1MSFT is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make 1MSFT a good candidate for quality investing.
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.
In the past 5 years 1MSFT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1MSFT (16.45%) is better than 92.73% of its industry peers.
1MSFT's Return On Equity of 29.65% is amongst the best of the industry. 1MSFT outperforms 88.18% of its industry peers.
1MSFT's Return On Invested Capital of 22.08% is amongst the best of the industry. 1MSFT outperforms 92.73% 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 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.45% | ||
| ROE | 29.65% | ||
| ROIC | 22.08% |
ROA(3y)17.07%
ROA(5y)17.9%
ROE(3y)32.52%
ROE(5y)36.88%
ROIC(3y)22.94%
ROIC(5y)23.52%
1.3 Margins
1MSFT's Profit Margin of 36.15% is amongst the best of the industry. 1MSFT outperforms 92.73% of its industry peers.
In the last couple of years the Profit Margin of 1MSFT has grown nicely.
The Operating Margin of 1MSFT (45.62%) is better than 96.36% of its industry peers.
1MSFT's Operating Margin has improved in the last couple of years.
1MSFT has a Gross Margin of 68.82%. This is comparable to the rest of the industry: 1MSFT outperforms 46.36% of its industry peers.
1MSFT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.62% | ||
| PM (TTM) | 36.15% | ||
| GM | 68.82% |
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%
2. Health
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.
Compared to 1 year ago, 1MSFT has about the same amount of shares outstanding.
The number of shares outstanding for 1MSFT has been reduced compared to 5 years ago.
1MSFT has a better debt/assets ratio than last year.
2.2 Solvency
1MSFT has an Altman-Z score of 10.12. This indicates that 1MSFT is financially healthy and has little risk of bankruptcy at the moment.
1MSFT has a better Altman-Z score (10.12) than 88.18% of its industry peers.
The Debt to FCF ratio of 1MSFT is 1.25, which is an excellent value as it means it would take 1MSFT, only 1.25 years of fcf income to pay off all of its debts.
1MSFT has a better Debt to FCF ratio (1.25) than 72.73% of its industry peers.
1MSFT has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, 1MSFT is in line with its industry, outperforming 55.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 10.12 |
ROIC/WACC2.02
WACC10.91%
2.3 Liquidity
A Current Ratio of 1.35 indicates that 1MSFT should not have too much problems paying its short term obligations.
1MSFT has a Current ratio of 1.35. This is comparable to the rest of the industry: 1MSFT outperforms 48.18% of its industry peers.
A Quick Ratio of 1.35 indicates that 1MSFT should not have too much problems paying its short term obligations.
1MSFT's Quick ratio of 1.35 is in line compared to the rest of the industry. 1MSFT outperforms 50.91% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.50% over the past year.
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.
1MSFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.93%.
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)15.5%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%23.73%
Revenue 1Y (TTM)14.93%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.1%
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 15.23% on average per year.
1MSFT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.67% yearly.
EPS Next Y15.9%
EPS Next 2Y16.5%
EPS Next 3Y17.55%
EPS Next 5Y15.23%
Revenue Next Year15.55%
Revenue Next 2Y15.01%
Revenue Next 3Y15.13%
Revenue Next 5Y12.67%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 37.82, the valuation of 1MSFT can be described as expensive.
Based on the Price/Earnings ratio, 1MSFT is valued a bit cheaper than the industry average as 64.55% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1MSFT to the average of the S&P500 Index (27.57), we can say 1MSFT is valued slightly more expensively.
A Price/Forward Earnings ratio of 32.63 indicates a quite expensive valuation of 1MSFT.
1MSFT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.09. 1MSFT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.82 | ||
| Fwd PE | 32.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MSFT is on the same level as its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.54 | ||
| EV/EBITDA | 23.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MSFT does not grow enough to justify the current Price/Earnings ratio.
1MSFT has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1MSFT's earnings are expected to grow with 17.55% in the coming years.
PEG (NY)2.38
PEG (5Y)2.01
EPS Next 2Y16.5%
EPS Next 3Y17.55%
5. Dividend
5.1 Amount
1MSFT has a yearly dividend return of 0.71%, which is pretty low.
1MSFT's Dividend Yield is a higher than the industry average which is at 2.80.
Compared to an average S&P500 Dividend Yield of 2.32, 1MSFT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
The dividend of 1MSFT is nicely growing with an annual growth rate of 10.24%!
Dividend Growth(5Y)10.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
23.65% 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.
DP23.65%
EPS Next 2Y16.5%
EPS Next 3Y17.55%
BIT:1MSFT (10/21/2025, 7:00:00 PM)
444.4
+0.5 (+0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners74.31%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3303.30B
Revenue(TTM)281.72B
Net Income(TTM)101.83B
Analysts85.71
Price Target525.17 (18.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend2.77
Dividend Growth(5Y)10.24%
DP23.65%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.77%
Min EPS beat(2)5.34%
Max EPS beat(2)6.2%
EPS beat(4)4
Avg EPS beat(4)4.44%
Min EPS beat(4)1.79%
Max EPS beat(4)6.2%
EPS beat(8)7
Avg EPS beat(8)4.04%
EPS beat(12)10
Avg EPS beat(12)3.55%
EPS beat(16)12
Avg EPS beat(16)3.12%
Revenue beat(2)2
Avg Revenue beat(2)0.97%
Min Revenue beat(2)0.4%
Max Revenue beat(2)1.54%
Revenue beat(4)2
Avg Revenue beat(4)0.21%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)1.54%
Revenue beat(8)3
Avg Revenue beat(8)0.03%
Revenue beat(12)4
Avg Revenue beat(12)-0.18%
Revenue beat(16)5
Avg Revenue beat(16)-0.36%
PT rev (1m)-2.16%
PT rev (3m)15.93%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)2.7%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.82 | ||
| Fwd PE | 32.63 | ||
| P/S | 13.61 | ||
| P/FCF | 53.54 | ||
| P/OCF | 28.16 | ||
| P/B | 11.16 | ||
| P/tB | 19.04 | ||
| EV/EBITDA | 23.14 |
EPS(TTM)11.75
EY2.64%
EPS(NY)13.62
Fwd EY3.06%
FCF(TTM)8.3
FCFY1.87%
OCF(TTM)15.78
OCFY3.55%
SpS32.65
BVpS39.81
TBVpS23.34
PEG (NY)2.38
PEG (5Y)2.01
Graham Number102.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.45% | ||
| ROE | 29.65% | ||
| ROCE | 26.9% | ||
| ROIC | 22.08% | ||
| ROICexc | 27.53% | ||
| ROICexgc | 43.75% | ||
| OM | 45.62% | ||
| PM (TTM) | 36.15% | ||
| GM | 68.82% | ||
| FCFM | 25.42% |
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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 189.01% | ||
| Cap/Sales | 22.91% | ||
| Interest Coverage | 80.33 | ||
| Cash Conversion | 83.7% | ||
| Profit Quality | 70.32% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 10.12 |
F-Score5
WACC10.91%
ROIC/WACC2.02
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)15.5%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%23.73%
EPS Next Y15.9%
EPS Next 2Y16.5%
EPS Next 3Y17.55%
EPS Next 5Y15.23%
Revenue 1Y (TTM)14.93%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.1%
Revenue Next Year15.55%
Revenue Next 2Y15.01%
Revenue Next 3Y15.13%
Revenue Next 5Y12.67%
EBIT growth 1Y17.45%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year51.87%
EBIT Next 3Y27.27%
EBIT Next 5Y25.57%
FCF growth 1Y-3.32%
FCF growth 3Y3.2%
FCF growth 5Y9.62%
OCF growth 1Y14.86%
OCF growth 3Y15.21%
OCF growth 5Y17.55%