MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MSFT - US5949181045 - Common Stock
402.75 EUR
-4.4 (-1.08%)
Overall 1MSFT gets a fundamental rating of 7 out of 10. We evaluated 1MSFT against 115 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 valued too expensively and it also shows a decent growth rate. These ratings would make 1MSFT suitable 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.
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
1MSFT has a better Return On Assets (16.49%) than 91.30% of its industry peers.
The Return On Equity of 1MSFT (28.90%) is better than 86.96% of its industry peers.
1MSFT has a Return On Invested Capital of 22.25%. This is amongst the best in the industry. 1MSFT outperforms 93.04% 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 12.73%.
| 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
1MSFT's Profit Margin of 35.71% is amongst the best of the industry. 1MSFT outperforms 92.17% of its industry peers.
In the last couple of years the Profit Margin of 1MSFT has grown nicely.
1MSFT has a Operating Margin of 46.27%. This is amongst the best in the industry. 1MSFT outperforms 95.65% of its industry peers.
1MSFT's Operating Margin has improved in the last couple of years.
The Gross Margin of 1MSFT (68.76%) is worse than 60.00% of its industry peers.
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
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.
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 9.64. This indicates that 1MSFT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1MSFT (9.64) is better than 88.70% 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.
With a decent Debt to FCF ratio value of 1.25, 1MSFT is doing good in the industry, outperforming 70.43% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that 1MSFT is not too dependend on debt financing.
1MSFT has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.64 |
ROIC/WACC2.06
WACC10.81%
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 comparable to the rest of the industry.
A Quick Ratio of 1.39 indicates that 1MSFT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.39, 1MSFT perfoms like the industry average, outperforming 50.43% of the companies in the same 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 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.
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.
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
1MSFT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.83% yearly.
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 32.72, the valuation of 1MSFT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 1MSFT indicates a somewhat cheap valuation: 1MSFT is cheaper than 64.35% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.43. 1MSFT is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 24.75 indicates a rather expensive valuation of 1MSFT.
63.48% of the companies in the same industry are more expensive than 1MSFT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.66, 1MSFT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.72 | ||
| Fwd PE | 24.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MSFT is valued a bit cheaper than 60.87% of the companies in the same industry.
1MSFT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.09 | ||
| EV/EBITDA | 19.79 |
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)1.43
PEG (5Y)1.73
EPS Next 2Y18.41%
EPS Next 3Y18.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, 1MSFT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.68, 1MSFT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, 1MSFT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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 (12/16/2025, 7:00:00 PM)
402.75
-4.4 (-1.08%)
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 Cap2.99T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86
Price Target541.78 (34.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend2.76
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)0.81%
PT rev (3m)0.94%
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)0.35%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.72 | ||
| Fwd PE | 24.75 | ||
| P/S | 11.97 | ||
| P/FCF | 45.09 | ||
| P/OCF | 23.93 | ||
| P/B | 9.69 | ||
| P/tB | 15.82 | ||
| EV/EBITDA | 19.79 |
EPS(TTM)12.31
EY3.06%
EPS(NY)16.27
Fwd EY4.04%
FCF(TTM)8.93
FCFY2.22%
OCF(TTM)16.83
OCFY4.18%
SpS33.64
BVpS41.56
TBVpS25.45
PEG (NY)1.43
PEG (5Y)1.73
Graham Number107.3
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 | 9.64 |
F-Score6
WACC10.81%
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%.