MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis
Europe - BIT:1MSFT - US5949181045 - Common Stock
422 EUR
-1.6 (-0.38%)
Taking everything into account, 1MSFT scores 7 out of 10 in our fundamental rating. 1MSFT was compared to 107 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
1MSFT had positive earnings in the past year.
In the past year 1MSFT had a positive cash flow from operations.
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.
1.2 Ratios
With an excellent Return On Assets value of 16.49%, 1MSFT belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
1MSFT's Return On Equity of 28.90% is amongst the best of the industry. 1MSFT outperforms 85.05% of its industry peers.
1MSFT has a Return On Invested Capital of 22.25%. This is amongst the best in the industry. 1MSFT outperforms 90.65% of its industry peers.
1MSFT had an Average Return On Invested Capital over the past 3 years of 22.94%. This is significantly above the industry average of 13.52%.
| 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
The Profit Margin of 1MSFT (35.71%) is better than 90.65% of its industry peers.
1MSFT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 46.27%, 1MSFT belongs to the top of the industry, outperforming 94.39% of the companies in the same industry.
1MSFT's Operating Margin has improved in the last couple of years.
1MSFT has a Gross Margin (68.76%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1MSFT has remained more or less at the same level.
| 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.
Compared to 1 year ago, 1MSFT has about the same amount of shares outstanding.
Compared to 5 years ago, 1MSFT has less shares outstanding
Compared to 1 year ago, 1MSFT has an improved debt to assets ratio.
2.2 Solvency
1MSFT has an Altman-Z score of 9.76. This indicates that 1MSFT is financially healthy and has little risk of bankruptcy at the moment.
1MSFT has a better Altman-Z score (9.76) than 91.59% 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.
The Debt to FCF ratio of 1MSFT (1.25) is better than 75.70% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that 1MSFT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, 1MSFT is in line with its industry, outperforming 55.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.76 |
ROIC/WACC2.04
WACC10.92%
2.3 Liquidity
A Current Ratio of 1.40 indicates that 1MSFT should not have too much problems paying its short term obligations.
1MSFT has a Current ratio (1.40) which is in line with its industry peers.
A Quick Ratio of 1.39 indicates that 1MSFT should not have too much problems paying its short term obligations.
1MSFT has a Quick ratio of 1.39. This is comparable to the rest of the industry: 1MSFT outperforms 54.21% 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 | 1.4 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
1MSFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.39%, which is quite good.
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 15.59%.
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
The Earnings Per Share is expected to grow by 18.83% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.31% on average over the next years. This is quite good.
EPS Next Y16.96%
EPS Next 2Y17.68%
EPS Next 3Y18.5%
EPS Next 5Y18.83%
Revenue Next Year16.4%
Revenue Next 2Y15.53%
Revenue Next 3Y15.9%
Revenue Next 5Y14.31%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.57, 1MSFT can be considered very expensive at the moment.
62.62% of the companies in the same industry are more expensive than 1MSFT, based on the Price/Earnings ratio.
1MSFT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.07.
A Price/Forward Earnings ratio of 25.72 indicates a quite expensive valuation of 1MSFT.
1MSFT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1MSFT is cheaper than 62.62% of the companies in the same industry.
1MSFT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.57 | ||
| Fwd PE | 25.72 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.29 | ||
| EV/EBITDA | 20.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 18.50% in the coming years.
PEG (NY)1.98
PEG (5Y)1.78
EPS Next 2Y17.68%
EPS Next 3Y18.5%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, 1MSFT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.22, 1MSFT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 1MSFT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
23.52% of the earnings are spent on dividend by 1MSFT. This is a low number and sustainable payout ratio.
The dividend of 1MSFT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.52%
EPS Next 2Y17.68%
EPS Next 3Y18.5%
BIT:1MSFT (11/20/2025, 7:00:00 PM)
422
-1.6 (-0.38%)
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 Cap3.14T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86.29
Price Target537.43 (27.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)2.33%
PT rev (3m)3.07%
EPS NQ rev (1m)4.35%
EPS NQ rev (3m)4.79%
EPS NY rev (1m)0.92%
EPS NY rev (3m)3.64%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.57 | ||
| Fwd PE | 25.72 | ||
| P/S | 12.29 | ||
| P/FCF | 46.29 | ||
| P/OCF | 24.56 | ||
| P/B | 9.95 | ||
| P/tB | 16.24 | ||
| EV/EBITDA | 20.11 |
EPS(TTM)12.57
EY2.98%
EPS(NY)16.41
Fwd EY3.89%
FCF(TTM)9.12
FCFY2.16%
OCF(TTM)17.18
OCFY4.07%
SpS34.33
BVpS42.42
TBVpS25.98
PEG (NY)1.98
PEG (5Y)1.78
Graham Number109.54
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 | 9.76 |
F-Score6
WACC10.92%
ROIC/WACC2.04
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 Y16.96%
EPS Next 2Y17.68%
EPS Next 3Y18.5%
EPS Next 5Y18.83%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year16.4%
Revenue Next 2Y15.53%
Revenue Next 3Y15.9%
Revenue Next 5Y14.31%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year51.87%
EBIT Next 3Y28.86%
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%.