MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis

BIT:1MSFT • US5949181045

339.35 EUR
+1.8 (+0.53%)
Last: Feb 18, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

7

1MSFT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 117 industry peers in the Software industry. Both the health and profitability get an excellent rating, making 1MSFT a very profitable company, without any liquidiy or solvency issues. 1MSFT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes 1MSFT very considerable for growth and quality investing!


Dividend Valuation Growth Profitability Health

8

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.
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 89.74% of its industry peers.
  • Looking at the Return On Equity, with a value of 30.51%, 1MSFT belongs to the top of the industry, outperforming 86.32% of the companies in the same industry.
  • 1MSFT has a better Return On Invested Capital (21.86%) than 94.87% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for 1MSFT is significantly above the industry average of 13.32%.
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's Profit Margin of 39.04% is amongst the best of the industry. 1MSFT outperforms 94.87% of its industry peers.
  • 1MSFT's Profit Margin has improved in the last couple of years.
  • 1MSFT's Operating Margin of 46.67% is amongst the best of the industry. 1MSFT outperforms 97.44% of its industry peers.
  • In the last couple of years the Operating Margin of 1MSFT has grown nicely.
  • The Gross Margin of 1MSFT (68.59%) 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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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MSFT is creating value.
  • The number of shares outstanding for 1MSFT remains at a similar level compared to 1 year ago.
  • 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

  • An Altman-Z score of 8.32 indicates that 1MSFT is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of 1MSFT (8.32) is better than 88.89% 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 66.67% 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 8.32
ROIC/WACC2.01
WACC10.89%
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.
  • Looking at the Current ratio, with a value of 1.39, 1MSFT is in line with its industry, outperforming 49.57% of the companies in the same industry.
  • 1MSFT has a Quick Ratio of 1.38. This is a normal value and indicates that 1MSFT is financially healthy and should not expect problems in meeting its short term obligations.
  • 1MSFT's Quick ratio of 1.38 is in line compared to the rest of the industry. 1MSFT outperforms 50.43% 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. Growth

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.
  • The Earnings Per Share has been growing by 18.86% on average over the past years. This is quite good.
  • The Revenue has grown by 16.67% in the past year. This is quite good.
  • 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.
  • 1MSFT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.18% yearly.
EPS Next Y24.51%
EPS Next 2Y19.37%
EPS Next 3Y18.79%
EPS Next 5Y18.94%
Revenue Next Year17.53%
Revenue Next 2Y16.55%
Revenue Next 3Y16.52%
Revenue Next 5Y16.18%

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.
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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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.92, which means the current valuation is very expensive for 1MSFT.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1MSFT indicates a somewhat cheap valuation: 1MSFT is cheaper than 64.96% of the companies listed in the same industry.
  • 1MSFT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.09, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 20.52, 1MSFT is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, 1MSFT is valued a bit cheaper than 64.10% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.98. 1MSFT is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 25.92
Fwd PE 20.52
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 40

4.2 Price Multiples

  • 61.54% of the companies in the same industry are more expensive than 1MSFT, based on the Enterprise Value to EBITDA ratio.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as 1MSFT.
Industry RankSector Rank
P/FCF 38.26
EV/EBITDA 16.17
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 18.79% in the coming years.
PEG (NY)1.06
PEG (5Y)1.37
EPS Next 2Y19.37%
EPS Next 3Y18.79%

More info and screens

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

5

5. Dividend

5.1 Amount

  • 1MSFT has a yearly dividend return of 0.91%, which is pretty low.
  • 1MSFT's Dividend Yield is a higher than the industry average which is at 0.69.
  • With a Dividend Yield of 0.91, 1MSFT pays less dividend than the S&P500 average, which is at 1.85.
Industry RankSector Rank
Dividend Yield 0.91%

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 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 2Y19.37%
EPS Next 3Y18.79%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

MICROSOFT CORP

BIT:1MSFT (2/18/2026, 7:00:00 PM)

339.35

+1.8 (+0.53%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners75.56%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.52T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts86.36
Price Target522.23 (53.89%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly Dividend2.73
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)-1.31%
PT rev (3m)-2.83%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)1.4%
EPS NY rev (3m)6.45%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.97%
Valuation
Industry RankSector Rank
PE 25.92
Fwd PE 20.52
P/S 9.7
P/FCF 38.26
P/OCF 18.45
P/B 7.58
P/tB 11.8
EV/EBITDA 16.17
EPS(TTM)13.09
EY3.86%
EPS(NY)16.54
Fwd EY4.87%
FCF(TTM)8.87
FCFY2.61%
OCF(TTM)18.39
OCFY5.42%
SpS35
BVpS44.79
TBVpS28.76
PEG (NY)1.06
PEG (5Y)1.37
Graham Number114.85
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 8.32
F-Score6
WACC10.89%
ROIC/WACC2.01
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 Y24.51%
EPS Next 2Y19.37%
EPS Next 3Y18.79%
EPS Next 5Y18.94%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.53%
Revenue Next 2Y16.55%
Revenue Next 3Y16.52%
Revenue Next 5Y16.18%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year57.72%
EBIT Next 3Y28.9%
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 FAQ

What is the ChartMill fundamental rating of MICROSOFT CORP (1MSFT.MI) stock?

ChartMill assigns a fundamental rating of 7 / 10 to 1MSFT.MI.


Can you provide the valuation status for MICROSOFT CORP?

ChartMill assigns a valuation rating of 5 / 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.


Can you provide the PE and PB ratios for 1MSFT stock?

The Price/Earnings (PE) ratio for MICROSOFT CORP (1MSFT.MI) is 25.92 and the Price/Book (PB) ratio is 7.58.


Can you provide the dividend sustainability for 1MSFT stock?

The dividend rating of MICROSOFT CORP (1MSFT.MI) is 5 / 10 and the dividend payout ratio is 21.19%.