MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:MSF • US5949181045
363.1 EUR
+7.7 (+2.17%)
Last: Jan 30, 2026, 07:00 PM
Overall MSF gets a fundamental rating of 7 out of 10. We evaluated MSF against 115 industry peers in the Software industry. MSF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MSF is not overvalued while it is showing excellent growth. This is an interesting combination. This makes MSF very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year MSF was profitable.
- In the past year MSF had a positive cash flow from operations.
- Each year in the past 5 years MSF has been profitable.
- Each year in the past 5 years MSF had a positive operating cash flow.
1.2 Ratios
- MSF's Return On Assets of 17.93% is amongst the best of the industry. MSF outperforms 89.57% of its industry peers.
- MSF has a better Return On Equity (30.51%) than 84.35% of its industry peers.
- With an excellent Return On Invested Capital value of 21.86%, MSF belongs to the best of the industry, outperforming 92.17% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for MSF is significantly above the industry average of 13.06%.
| Industry Rank | Sector 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%
1.3 Margins
- MSF's Profit Margin of 39.04% is amongst the best of the industry. MSF outperforms 93.91% of its industry peers.
- MSF's Profit Margin has improved in the last couple of years.
- MSF has a better Operating Margin (46.67%) than 96.52% of its industry peers.
- MSF's Operating Margin has improved in the last couple of years.
- The Gross Margin of MSF (68.59%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of MSF has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- MSF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- MSF has about the same amout of shares outstanding than it did 1 year ago.
- MSF has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MSF has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 8.88 indicates that MSF is not in any danger for bankruptcy at the moment.
- MSF's Altman-Z score of 8.88 is amongst the best of the industry. MSF outperforms 86.96% of its industry peers.
- MSF 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.
- The Debt to FCF ratio of MSF (1.30) is better than 70.43% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that MSF is not too dependend on debt financing.
- MSF's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. MSF outperforms 54.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 8.88 |
ROIC/WACC1.99
WACC10.96%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that MSF should not have too much problems paying its short term obligations.
- The Current ratio of MSF (1.39) is comparable to the rest of the industry.
- MSF has a Quick Ratio of 1.38. This is a normal value and indicates that MSF is financially healthy and should not expect problems in meeting its short term obligations.
- MSF has a Quick ratio (1.38) which is in line with its industry peers.
- The current and quick ratio evaluation for MSF 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 23.83% over the past year.
- The Earnings Per Share has been growing by 18.86% on average over the past years. This is quite good.
- Looking at the last year, MSF shows a quite strong growth in Revenue. The Revenue has grown by 16.67% in the last year.
- Measured over the past years, MSF 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
- Based on estimates for the next years, MSF will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.83% on average per year.
- MSF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.04% yearly.
EPS Next Y22.79%
EPS Next 2Y18.47%
EPS Next 3Y18.31%
EPS Next 5Y18.83%
Revenue Next Year17.06%
Revenue Next 2Y15.95%
Revenue Next 3Y16.12%
Revenue Next 5Y15.04%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 28.15 indicates a quite expensive valuation of MSF.
- Compared to the rest of the industry, the Price/Earnings ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 65.22% of the companies listed in the same industry.
- MSF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 22.61, which indicates a rather expensive current valuation of MSF.
- Based on the Price/Forward Earnings ratio, MSF is valued a bit cheaper than 67.83% of the companies in the same industry.
- MSF's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.15 | ||
| Fwd PE | 22.61 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as MSF.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.55 | ||
| EV/EBITDA | 17.58 |
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 MSF may justify a higher PE ratio.
- A more expensive valuation may be justified as MSF's earnings are expected to grow with 18.31% in the coming years.
PEG (NY)1.24
PEG (5Y)1.49
EPS Next 2Y18.47%
EPS Next 3Y18.31%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.84%, MSF is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.64, MSF pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.84, MSF pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
- On average, the dividend of MSF grows each year by 10.24%, which is quite nice.
Dividend Growth(5Y)10.24%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- MSF pays out 21.19% of its income as dividend. This is a sustainable payout ratio.
- MSF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.19%
EPS Next 2Y18.47%
EPS Next 3Y18.31%
MICROSOFT CORP / MSF.DE FAQ
Can you provide the ChartMill fundamental rating for MICROSOFT CORP?
ChartMill assigns a fundamental rating of 7 / 10 to MSF.DE.
What is the valuation status for MSF stock?
ChartMill assigns a valuation rating of 4 / 10 to MICROSOFT CORP (MSF.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for MICROSOFT CORP?
MICROSOFT CORP (MSF.DE) 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 (MSF.DE) is 28.15 and the Price/Book (PB) ratio is 8.23.
Can you provide the dividend sustainability for MSF stock?
The dividend rating of MICROSOFT CORP (MSF.DE) is 5 / 10 and the dividend payout ratio is 21.19%.