MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MSFT - US5949181045 - Common Stock
410.35 EUR
-11.6 (-2.75%)
1MSFT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 113 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 has a decent growth rate and is not valued too expensively. With these ratings, 1MSFT could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year 1MSFT was profitable.
1MSFT had a positive operating cash flow in the past year.
In the past 5 years 1MSFT has always been profitable.
In the past 5 years 1MSFT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 16.49%, 1MSFT belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
1MSFT has a Return On Equity of 28.90%. This is amongst the best in the industry. 1MSFT outperforms 87.93% of its industry peers.
The Return On Invested Capital of 1MSFT (22.25%) is better than 93.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MSFT is significantly above the industry average of 13.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.49% | ||
| ROE | 28.9% | ||
| ROIC | 22.25% |
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
With an excellent Profit Margin value of 35.71%, 1MSFT belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
1MSFT's Profit Margin has improved in the last couple of years.
1MSFT's Operating Margin of 46.27% is amongst the best of the industry. 1MSFT outperforms 95.69% of its industry peers.
In the last couple of years the Operating Margin of 1MSFT has grown nicely.
1MSFT has a Gross Margin (68.76%) which is comparable to the rest of the industry.
1MSFT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.27% | ||
| PM (TTM) | 35.71% | ||
| GM | 68.76% |
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.
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.
2.2 Solvency
An Altman-Z score of 9.63 indicates that 1MSFT is not in any danger for bankruptcy at the moment.
1MSFT has a Altman-Z score of 9.63. This is amongst the best in the industry. 1MSFT outperforms 89.66% 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's Debt to FCF ratio of 1.25 is fine compared to the rest of the industry. 1MSFT outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that 1MSFT is not too dependend on debt financing.
The Debt to Equity ratio of 1MSFT (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.63 |
ROIC/WACC2.06
WACC10.8%
2.3 Liquidity
A Current Ratio of 1.40 indicates that 1MSFT should not have too much problems paying its short term obligations.
The Current ratio of 1MSFT (1.40) is comparable to the rest of the industry.
1MSFT has a Quick 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 Quick ratio of 1.39. This is comparable to the rest of the industry: 1MSFT outperforms 54.31% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.39% over the past year.
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 15.59% in the last year.
1MSFT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.52% yearly.
EPS 1Y (TTM)19.39%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%25.15%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
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 18.83% on average per year.
1MSFT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.04% yearly.
EPS Next Y22.86%
EPS Next 2Y18.41%
EPS Next 3Y18.25%
EPS Next 5Y18.83%
Revenue Next Year17.05%
Revenue Next 2Y15.88%
Revenue Next 3Y16%
Revenue Next 5Y15.04%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.01, 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 65.52% of the companies are valued more expensively.
1MSFT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.49.
A Price/Forward Earnings ratio of 24.99 indicates a rather expensive valuation of 1MSFT.
Based on the Price/Forward Earnings ratio, 1MSFT is valued a bit cheaper than 64.66% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1MSFT to the average of the S&P500 Index (23.69), we can say 1MSFT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.01 | ||
| Fwd PE | 24.99 |
4.2 Price Multiples
1MSFT's Enterprise Value to EBITDA ratio is in line with the industry average.
1MSFT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.52 | ||
| EV/EBITDA | 19.76 |
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 18.25% in the coming years.
PEG (NY)1.44
PEG (5Y)1.75
EPS Next 2Y18.41%
EPS Next 3Y18.25%
5. Dividend
5.1 Amount
1MSFT has a yearly dividend return of 0.76%, which is pretty low.
1MSFT's Dividend Yield is a higher than the industry average which is at 2.24.
Compared to an average S&P500 Dividend Yield of 2.31, 1MSFT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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
1MSFT pays out 23.52% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1MSFT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.52%
EPS Next 2Y18.41%
EPS Next 3Y18.25%
BIT:1MSFT (12/4/2025, 7:00:00 PM)
410.35
-11.6 (-2.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners75.51%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3.05T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86
Price Target541.78 (32.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend2.78
Dividend Growth(5Y)10.24%
DP23.52%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.33%
Min EPS beat(2)6.2%
Max EPS beat(2)10.46%
EPS beat(4)4
Avg EPS beat(4)5.95%
Min EPS beat(4)1.79%
Max EPS beat(4)10.46%
EPS beat(8)7
Avg EPS beat(8)4.04%
EPS beat(12)10
Avg EPS beat(12)4.42%
EPS beat(16)12
Avg EPS beat(16)3.32%
Revenue beat(2)2
Avg Revenue beat(2)1.31%
Min Revenue beat(2)1.09%
Max Revenue beat(2)1.54%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
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)5
Avg Revenue beat(12)-0.01%
Revenue beat(16)5
Avg Revenue beat(16)-0.36%
PT rev (1m)1.11%
PT rev (3m)2.49%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)5.04%
EPS NY rev (3m)5.96%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.01 | ||
| Fwd PE | 24.99 | ||
| P/S | 12.09 | ||
| P/FCF | 45.52 | ||
| P/OCF | 24.15 | ||
| P/B | 9.78 | ||
| P/tB | 15.97 | ||
| EV/EBITDA | 19.76 |
EPS(TTM)12.43
EY3.03%
EPS(NY)16.42
Fwd EY4%
FCF(TTM)9.01
FCFY2.2%
OCF(TTM)16.99
OCFY4.14%
SpS33.95
BVpS41.95
TBVpS25.69
PEG (NY)1.44
PEG (5Y)1.75
Graham Number108.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.49% | ||
| ROE | 28.9% | ||
| ROCE | 27.11% | ||
| ROIC | 22.25% | ||
| ROICexc | 27.94% | ||
| ROICexgc | 43.14% | ||
| OM | 46.27% | ||
| PM (TTM) | 35.71% | ||
| GM | 68.76% | ||
| FCFM | 26.55% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 173.29% | ||
| Cap/Sales | 23.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.66% | ||
| Profit Quality | 74.36% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 9.63 |
F-Score6
WACC10.8%
ROIC/WACC2.06
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)19.39%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%25.15%
EPS Next Y22.86%
EPS Next 2Y18.41%
EPS Next 3Y18.25%
EPS Next 5Y18.83%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year17.05%
Revenue Next 2Y15.88%
Revenue Next 3Y16%
Revenue Next 5Y15.04%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year58.69%
EBIT Next 3Y29.61%
EBIT Next 5Y23.22%
FCF growth 1Y23.39%
FCF growth 3Y3.2%
FCF growth 5Y9.62%
OCF growth 1Y54.83%
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.
What is the valuation status for 1MSFT stock?
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.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (1MSFT.MI) is 8 / 10.
Is the dividend of MICROSOFT CORP sustainable?
The dividend rating of MICROSOFT CORP (1MSFT.MI) is 5 / 10 and the dividend payout ratio is 23.52%.