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

BIT:1MSFT • US5949181045

Current stock price

343.5 EUR
-20.45 (-5.62%)
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.
  • 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

  • The Return On Assets of 1MSFT (17.93%) is better than 91.96% of its industry peers.
  • 1MSFT has a Return On Equity of 30.51%. This is amongst the best in the industry. 1MSFT outperforms 88.39% 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 12.32%.
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 99.11% of its industry peers.
  • In the last couple of years the Profit Margin of 1MSFT has grown nicely.
  • 1MSFT has a Operating Margin of 46.67%. This is amongst the best in the industry. 1MSFT outperforms 98.21% of its industry peers.
  • 1MSFT's Operating Margin has improved in the last couple of years.
  • 1MSFT's Gross Margin of 68.59% is in line compared to the rest of the industry. 1MSFT outperforms 44.64% of its industry peers.
  • 1MSFT's Gross Margin has been stable in the last couple of years.
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

  • 1MSFT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • The number of shares outstanding for 1MSFT remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, 1MSFT has less shares outstanding
  • 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

  • 1MSFT has an Altman-Z score of 8.76. This indicates that 1MSFT is financially healthy and has little risk of bankruptcy at the moment.
  • 1MSFT has a better Altman-Z score (8.76) than 91.96% 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's Debt to FCF ratio of 1.30 is fine compared to the rest of the industry. 1MSFT outperforms 67.86% of its industry peers.
  • 1MSFT has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
  • 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 8.76
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

  • 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 50.89% 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 53.57% 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. 1MSFT.MI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.83% 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.
  • 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.
  • Based on estimates for the next years, 1MSFT will show a quite strong growth in Revenue. The Revenue will grow by 15.74% on average per year.
EPS Next Y24.06%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
EPS Next 5Y18.94%
Revenue Next Year17.49%
Revenue Next 2Y16.61%
Revenue Next 3Y16.48%
Revenue Next 5Y15.74%

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.
  • 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.
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

  • A Price/Earnings ratio of 26.14 indicates a quite expensive valuation of 1MSFT.
  • 61.61% of the companies in the same industry are more expensive than 1MSFT, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of 1MSFT to the average of the S&P500 Index (26.77), we can say 1MSFT is valued inline with the index average.
  • A Price/Forward Earnings ratio of 20.75 indicates a rather expensive valuation of 1MSFT.
  • The rest of the industry has a similar Price/Forward Earnings ratio as 1MSFT.
  • When comparing the Price/Forward Earnings ratio of 1MSFT to the average of the S&P500 Index (21.75), we can say 1MSFT is valued inline with the index average.
Industry RankSector Rank
PE 26.14
Fwd PE 20.75
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1MSFT.
  • 1MSFT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 38.57
EV/EBITDA 17.27
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

  • 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 18.63% in the coming years.
PEG (NY)1.09
PEG (5Y)1.39
EPS Next 2Y19.21%
EPS Next 3Y18.63%

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5

5. 1MSFT.MI Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.88%, 1MSFT is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.74, 1MSFT pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.88, 1MSFT pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.88%

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.
  • The dividend of 1MSFT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.19%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
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 (4/30/2026, 7:00:00 PM)

343.5

-20.45 (-5.62%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength6.21
Industry Growth86.34
Earnings (Last)01-28
Earnings (Next)04-29
Inst Owners75.75%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.55T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.23
Price Target514.72 (49.85%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.88%
Yearly Dividend2.77
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)1.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)0.12%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)-0.79%
PT rev (3m)-5.38%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)1.26%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE 26.14
Fwd PE 20.75
P/S 9.78
P/FCF 38.57
P/OCF 18.6
P/B 7.64
P/tB 11.9
EV/EBITDA 17.27
EPS(TTM)13.14
EY3.83%
EPS(NY)16.56
Fwd EY4.82%
FCF(TTM)8.91
FCFY2.59%
OCF(TTM)18.47
OCFY5.38%
SpS35.14
BVpS44.97
TBVpS28.87
PEG (NY)1.09
PEG (5Y)1.39
Graham Number115.302 (-66.43%)
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 8.76
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 Y24.06%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
EPS Next 5Y18.94%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.49%
Revenue Next 2Y16.61%
Revenue Next 3Y16.48%
Revenue Next 5Y15.74%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year55.69%
EBIT Next 3Y29%
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 26.14 and the Price/Book (PB) ratio is 7.64.


How financially healthy is MICROSOFT CORP?

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