MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis

BIT:1MSFT • US5949181045

336.6 EUR
+8.75 (+2.67%)
Last: Feb 25, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to 1MSFT. 1MSFT was compared to 112 industry peers in the Software industry. 1MSFT gets an excellent profitability rating and is at the same time showing great financial health properties. 1MSFT is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, 1MSFT could be worth investigating further for growth and quality investing!.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • 1MSFT had positive earnings in the past year.
  • 1MSFT had a positive operating cash flow in the past year.
  • 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 has a better Return On Assets (17.93%) than 90.18% of its industry peers.
  • The Return On Equity of 1MSFT (30.51%) is better than 86.61% of its industry peers.
  • 1MSFT's Return On Invested Capital of 21.86% is amongst the best of the industry. 1MSFT outperforms 94.64% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for 1MSFT is significantly above the industry average of 12.70%.
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 95.54% of its industry peers.
  • 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 97.32% of the companies in the same industry.
  • 1MSFT's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 68.59%, 1MSFT is in line with its industry, outperforming 41.96% of the companies in the same 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

  • 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
  • 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

  • 1MSFT has an Altman-Z score of 8.29. This indicates that 1MSFT is financially healthy and has little risk of bankruptcy at the moment.
  • 1MSFT has a Altman-Z score of 8.29. This is amongst the best in the industry. 1MSFT outperforms 90.18% 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 Debt to FCF ratio of 1.30. This is in the better half of the industry: 1MSFT outperforms 66.96% 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 in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Altman-Z 8.29
ROIC/WACC2.02
WACC10.84%
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 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 52.68% 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 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.
  • 1MSFT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.86% yearly.
  • The Revenue has grown by 16.67% in the past year. This is quite good.
  • 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

  • 1MSFT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.94% yearly.
  • The Revenue is expected to grow by 16.18% on average over the next years. This is quite good.
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

4

4. Valuation

4.1 Price/Earnings Ratio

  • 1MSFT is valuated quite expensively with a Price/Earnings ratio of 25.79.
  • 1MSFT's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MSFT is cheaper than 63.39% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.05, 1MSFT is valued at the same level.
  • With a Price/Forward Earnings ratio of 20.41, 1MSFT is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MSFT indicates a somewhat cheap valuation: 1MSFT is cheaper than 61.61% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of 1MSFT to the average of the S&P500 Index (28.03), we can say 1MSFT is valued slightly cheaper.
Industry RankSector Rank
PE 25.79
Fwd PE 20.41
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

  • 1MSFT's Enterprise Value to EBITDA ratio is in line with the industry average.
  • 1MSFT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 38.05
EV/EBITDA 16.08
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.
  • 1MSFT's earnings are expected to grow with 18.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)1.37
EPS Next 2Y19.37%
EPS Next 3Y18.79%

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

5

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.91%, 1MSFT is not a good candidate for dividend investing.
  • In the last 3 months the price of 1MSFT has falen by -20.62%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 0.73, 1MSFT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.80, 1MSFT's dividend is way lower than the S&P500 average.
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

  • 21.19% of the earnings are spent on dividend by 1MSFT. This is a low number and 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 (2/25/2026, 7:00:00 PM)

336.6

+8.75 (+2.67%)

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 Cap2.50T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts86.36
Price Target522.23 (55.15%)
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)-4%
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 25.79
Fwd PE 20.41
P/S 9.64
P/FCF 38.05
P/OCF 18.35
P/B 7.54
P/tB 11.74
EV/EBITDA 16.08
EPS(TTM)13.05
EY3.88%
EPS(NY)16.49
Fwd EY4.9%
FCF(TTM)8.85
FCFY2.63%
OCF(TTM)18.34
OCFY5.45%
SpS34.91
BVpS44.67
TBVpS28.68
PEG (NY)1.05
PEG (5Y)1.37
Graham Number114.53
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 8.29
F-Score6
WACC10.84%
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 Y24.51%
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 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.


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

The Price/Earnings (PE) ratio for MICROSOFT CORP (1MSFT.MI) is 25.79 and the Price/Book (PB) ratio is 7.54.


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%.