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

BIT:1MSFT • US5949181045

Current stock price

343.5 EUR
-20.1 (-5.53%)
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.
  • 1MSFT had positive earnings in each of the past 5 years.
  • 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's Return On Assets of 17.93% is amongst the best of the industry. 1MSFT outperforms 91.96% of its industry peers.
  • 1MSFT has a Return On Equity of 30.51%. This is amongst the best in the industry. 1MSFT outperforms 88.39% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 21.86%, 1MSFT belongs to the top of the industry, outperforming 94.64% 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 12.32%.
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 Profit Margin of 39.04%. This is amongst the best in the industry. 1MSFT outperforms 99.11% of its industry peers.
  • In the last couple of years the Profit Margin of 1MSFT has grown nicely.
  • The Operating Margin of 1MSFT (46.67%) is better than 98.21% of its industry peers.
  • 1MSFT's Operating Margin has improved in the last couple of years.
  • 1MSFT has a Gross Margin of 68.59%. This is comparable to the rest of the industry: 1MSFT outperforms 44.64% of its industry peers.
  • 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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MSFT is creating value.
  • Compared to 1 year ago, 1MSFT has about the same amount of shares outstanding.
  • 1MSFT has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, 1MSFT has an improved debt to assets ratio.
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.
  • Looking at the Altman-Z score, with a value of 8.37, 1MSFT belongs to the top of the industry, outperforming 91.96% 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.
  • The Debt to FCF ratio of 1MSFT (1.30) is better than 67.86% of its industry peers.
  • A Debt/Equity ratio of 0.23 indicates that 1MSFT is not too dependend on debt financing.
  • 1MSFT has a Debt to Equity ratio (0.23) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Altman-Z 8.37
ROIC/WACC2.02
WACC10.81%
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

  • A Current Ratio of 1.39 indicates that 1MSFT should not have too much problems paying its short term obligations.
  • 1MSFT has a Current ratio (1.39) which is in line with its industry peers.
  • A Quick Ratio of 1.38 indicates that 1MSFT should not have too much problems paying its short term obligations.
  • 1MSFT's Quick ratio of 1.38 is in line compared to the rest of the industry. 1MSFT outperforms 53.57% 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 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.
  • 1MSFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.67%.
  • 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

  • The Earnings Per Share is expected to grow by 18.94% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 15.74% on average over the next years. This is quite good.
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 5Y15.74%

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.
  • 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

  • A Price/Earnings ratio of 26.14 indicates a quite expensive valuation of 1MSFT.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1MSFT indicates a somewhat cheap valuation: 1MSFT is cheaper than 63.39% of the companies listed in the same industry.
  • 1MSFT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.77.
  • A Price/Forward Earnings ratio of 20.74 indicates a rather expensive valuation of 1MSFT.
  • 62.50% of the companies in the same industry are more expensive than 1MSFT, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.75, 1MSFT is valued at the same level.
Industry RankSector Rank
PE 26.14
Fwd PE 20.74
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 60.71% of the companies are valued more expensively.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as 1MSFT.
Industry RankSector Rank
P/FCF 38.56
EV/EBITDA 16.3
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.
  • 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 18.63% in the coming years.
PEG (NY)1.09
PEG (5Y)1.39
EPS Next 2Y19.21%
EPS Next 3Y18.63%

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

5

5. 1MSFT.MI Dividend Analysis

5.1 Amount

  • 1MSFT has a yearly dividend return of 0.88%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.74, 1MSFT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, 1MSFT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.88%

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 (4/30/2026, 7:00:00 PM)

343.5

-20.1 (-5.53%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength6.21
Industry Growth86.34
Earnings (Last)01-28
Earnings (Next)04-29
Inst Owners75.75%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.55T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.23
Price Target514.72 (49.85%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.88%
Yearly Dividend2.77
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)-0.05%
EPS NQ rev (3m)1.26%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE 26.14
Fwd PE 20.74
P/S 9.77
P/FCF 38.56
P/OCF 18.6
P/B 7.64
P/tB 11.89
EV/EBITDA 16.3
EPS(TTM)13.14
EY3.83%
EPS(NY)16.56
Fwd EY4.82%
FCF(TTM)8.91
FCFY2.59%
OCF(TTM)18.47
OCFY5.38%
SpS35.15
BVpS44.98
TBVpS28.88
PEG (NY)1.09
PEG (5Y)1.39
Graham Number115.322 (-66.43%)
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
WACC10.81%
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)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 5Y15.74%
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 26.14 and the Price/Book (PB) ratio is 7.64.


How financially healthy is MICROSOFT CORP?

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