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

BIT:1MSFT • US5949181045

Current stock price

343.5 EUR
-20.1 (-5.53%)
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

  • 1MSFT had positive earnings in the past year.
  • In the past year 1MSFT had a positive cash flow from operations.
  • 1MSFT had positive earnings in each of the past 5 years.
  • 1MSFT had a positive operating cash flow in each of the past 5 years.
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 18.04% is amongst the best of the industry. 1MSFT outperforms 91.96% of its industry peers.
  • The Return On Equity of 1MSFT (30.22%) is better than 88.39% of its industry peers.
  • 1MSFT's Return On Invested Capital of 21.93% 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 13.22%.
Industry RankSector Rank
ROA 18.04%
ROE 30.22%
ROIC 21.93%
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

  • With an excellent Profit Margin value of 39.34%, 1MSFT belongs to the best of the industry, outperforming 99.11% of the companies in the same industry.
  • In the last couple of years the Profit Margin of 1MSFT has grown nicely.
  • 1MSFT has a better Operating Margin (46.80%) than 98.21% of its industry peers.
  • In the last couple of years the Operating Margin of 1MSFT has grown nicely.
  • The Gross Margin of 1MSFT (68.31%) is comparable to the rest of the industry.
  • 1MSFT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 46.8%
PM (TTM) 39.34%
GM 68.31%
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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1MSFT is creating value.
  • 1MSFT has about the same amout of shares outstanding than it did 1 year ago.
  • 1MSFT has less shares outstanding than it did 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 8.24 indicates that 1MSFT is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of 1MSFT (8.24) is better than 91.96% of its industry peers.
  • The Debt to FCF ratio of 1MSFT is 1.42, which is an excellent value as it means it would take 1MSFT, only 1.42 years of fcf income to pay off all of its debts.
  • 1MSFT has a Debt to FCF ratio of 1.42. This is in the better half of the industry: 1MSFT outperforms 66.96% of its industry peers.
  • 1MSFT has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.22, 1MSFT is in line with its industry, outperforming 52.68% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 1.42
Altman-Z 8.24
ROIC/WACC2.03
WACC10.79%
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 1.28 indicates that 1MSFT should not have too much problems paying its short term obligations.
  • The Current ratio of 1MSFT (1.28) is comparable to the rest of the industry.
  • A Quick Ratio of 1.27 indicates that 1MSFT should not have too much problems paying its short term obligations.
  • 1MSFT has a Quick ratio (1.27) which is comparable to the rest of the industry.
  • 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 1.28
Quick Ratio 1.27
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 25.12% over the past year.
  • 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 17.87% 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)25.12%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%23.41%
Revenue 1Y (TTM)17.87%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.3%

3.2 Future

  • The Earnings Per Share is expected to grow by 18.94% on average over the next years. This is quite good.
  • 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

  • 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.
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 24.82 indicates a rather expensive valuation of 1MSFT.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1MSFT indicates a somewhat cheap valuation: 1MSFT is cheaper than 68.75% 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 26.51, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 20.74, 1MSFT is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, 1MSFT is valued a bit cheaper than 62.50% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of 1MSFT to the average of the S&P500 Index (21.41), we can say 1MSFT is valued inline with the index average.
Industry RankSector Rank
PE 24.82
Fwd PE 20.74
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

  • 1MSFT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1MSFT is cheaper than 60.71% of the companies in the same industry.
  • 1MSFT's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 40.94
EV/EBITDA 15.79
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.
  • 1MSFT's earnings are expected to grow with 18.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)1.32
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 0.89%, 1MSFT is not a good candidate for dividend investing.
  • 1MSFT's Dividend Yield is a higher than the industry average which is at 0.91.
  • 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 0.89%

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 20.65% 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.
DP20.65%
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

-20.1 (-5.53%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength6.83
Industry Growth85.71
Earnings (Last)04-29
Earnings (Next)07-28
Inst Owners75.75%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.55T
Revenue(TTM)318.27B
Net Income(TTM)125.22B
Analysts85.23
Price Target498.27 (45.06%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.89%
Yearly Dividend2.77
Dividend Growth(5Y)10.24%
DP20.65%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.84%
Min EPS beat(2)2.62%
Max EPS beat(2)3.06%
EPS beat(4)4
Avg EPS beat(4)5.58%
Min EPS beat(4)2.62%
Max EPS beat(4)10.46%
EPS beat(8)7
Avg EPS beat(8)4.06%
EPS beat(12)11
Avg EPS beat(12)4.33%
EPS beat(16)13
Avg EPS beat(16)3.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)-0.16%
Revenue beat(4)2
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)1.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.05%
Revenue beat(12)4
Avg Revenue beat(12)-0.02%
Revenue beat(16)5
Avg Revenue beat(16)-0.31%
PT rev (1m)-3.96%
PT rev (3m)-8.4%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.95%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE 24.82
Fwd PE 20.74
P/S 9.38
P/FCF 40.94
P/OCF 17.54
P/B 7.2
P/tB 10.84
EV/EBITDA 15.79
EPS(TTM)13.84
EY4.03%
EPS(NY)16.56
Fwd EY4.82%
FCF(TTM)8.39
FCFY2.44%
OCF(TTM)19.58
OCFY5.7%
SpS36.63
BVpS47.69
TBVpS31.69
PEG (NY)1.03
PEG (5Y)1.32
Graham Number121.858 (-64.52%)
Profitability
Industry RankSector Rank
ROA 18.04%
ROE 30.22%
ROCE 26.72%
ROIC 21.93%
ROICexc 25.51%
ROICexgc 35.92%
OM 46.8%
PM (TTM) 39.34%
GM 68.31%
FCFM 22.91%
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 0.22
Debt/FCF 1.42
Debt/EBITDA 0.48
Cap/Depr 251.13%
Cap/Sales 30.55%
Interest Coverage 250
Cash Conversion 90.66%
Profit Quality 58.23%
Current Ratio 1.28
Quick Ratio 1.27
Altman-Z 8.24
F-Score6
WACC10.79%
ROIC/WACC2.03
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)25.12%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%23.41%
EPS Next Y24.06%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
EPS Next 5Y18.94%
Revenue 1Y (TTM)17.87%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.3%
Revenue Next Year17.49%
Revenue Next 2Y16.61%
Revenue Next 3Y16.48%
Revenue Next 5Y15.74%
EBIT growth 1Y21.97%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year55.69%
EBIT Next 3Y29%
EBIT Next 5Y23.22%
FCF growth 1Y3.32%
FCF growth 3Y3.2%
FCF growth 5Y9.62%
OCF growth 1Y54.5%
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 24.82 and the Price/Book (PB) ratio is 7.2.


How financially healthy is MICROSOFT CORP?

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