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

BIT:1MSFT • US5949181045

Current stock price

316.55 EUR
+0.85 (+0.27%)
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

  • 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.
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 has a better Return On Assets (17.93%) than 90.00% of its industry peers.
  • 1MSFT has a Return On Equity of 30.51%. This is amongst the best in the industry. 1MSFT outperforms 85.45% of its industry peers.
  • 1MSFT has a Return On Invested Capital of 21.86%. This is amongst the best in the industry. 1MSFT outperforms 93.64% 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 13.72%.
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 97.27% of the companies in the same industry.
  • 1MSFT's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 46.67%, 1MSFT belongs to the best of the industry, outperforming 97.27% of the companies in the same industry.
  • In the last couple of years the Operating Margin of 1MSFT has grown nicely.
  • 1MSFT has a Gross Margin (68.59%) 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 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.
  • 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.
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 7.84 indicates that 1MSFT is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of 1MSFT (7.84) is better than 87.27% of its industry peers.
  • 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 better Debt to FCF ratio (1.30) than 67.27% of its industry peers.
  • A Debt/Equity ratio of 0.23 indicates that 1MSFT is not too dependend on debt financing.
  • The Debt to Equity ratio of 1MSFT (0.23) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Altman-Z 7.84
ROIC/WACC2.02
WACC10.82%
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.
  • 1MSFT has a Current ratio (1.39) which is comparable to the rest of the industry.
  • A Quick Ratio of 1.38 indicates that 1MSFT should not have too much problems paying its short term obligations.
  • The Quick ratio of 1MSFT (1.38) is comparable to the rest of the 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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7

3. 1MSFT.MI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.83% 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 16.67% in the last year.
  • 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

  • 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 16.18% on average over the next years. This is quite good.
EPS Next Y24.05%
EPS Next 2Y19.2%
EPS Next 3Y18.61%
EPS Next 5Y18.94%
Revenue Next Year17.5%
Revenue Next 2Y16.52%
Revenue Next 3Y16.5%
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 24.05, the valuation of 1MSFT can be described as rather 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.
  • Compared to an average S&P500 Price/Earnings ratio of 26.78, 1MSFT is valued at the same level.
  • A Price/Forward Earnings ratio of 19.09 indicates a rather expensive valuation of 1MSFT.
  • Based on the Price/Forward Earnings ratio, 1MSFT is valued a bit cheaper than 61.82% 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 23.54, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.05
Fwd PE 19.09
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MSFT is on the same level as its industry peers.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as 1MSFT.
Industry RankSector Rank
P/FCF 35.48
EV/EBITDA 14.93
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 18.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)1.28
EPS Next 2Y19.2%
EPS Next 3Y18.61%

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

6

5. 1MSFT.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.02%, 1MSFT has a reasonable but not impressive dividend return.
  • In the last 3 months the price of 1MSFT has falen by -22.69%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • 1MSFT's Dividend Yield is a higher than the industry average which is at 0.87.
  • Compared to an average S&P500 Dividend Yield of 1.83, 1MSFT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.02%

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 2Y19.2%
EPS Next 3Y18.61%
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 (4/10/2026, 7:00:00 PM)

316.55

+0.85 (+0.27%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners75.67%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.35T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.23
Price Target518.8 (63.89%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.02%
Yearly Dividend2.81
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)1.54%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)0.13%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)0%
PT rev (3m)-1.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)0%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
Industry RankSector Rank
PE 24.05
Fwd PE 19.09
P/S 8.99
P/FCF 35.48
P/OCF 17.11
P/B 7.03
P/tB 10.94
EV/EBITDA 14.93
EPS(TTM)13.16
EY4.16%
EPS(NY)16.59
Fwd EY5.24%
FCF(TTM)8.92
FCFY2.82%
OCF(TTM)18.5
OCFY5.84%
SpS35.2
BVpS45.05
TBVpS28.92
PEG (NY)1
PEG (5Y)1.28
Graham Number115.49
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 7.84
F-Score6
WACC10.82%
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 Y24.05%
EPS Next 2Y19.2%
EPS Next 3Y18.61%
EPS Next 5Y18.94%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.5%
Revenue Next 2Y16.52%
Revenue Next 3Y16.5%
Revenue Next 5Y16.18%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year55.61%
EBIT Next 3Y28.93%
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 24.05 and the Price/Book (PB) ratio is 7.03.


How financially healthy is MICROSOFT CORP?

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