MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MSF - US5949181045 - Common Stock
396.75 EUR
-0.55 (-0.14%)
Taking everything into account, MSF scores 7 out of 10 in our fundamental rating. MSF was compared to 125 industry peers in the Software industry. MSF gets an excellent profitability rating and is at the same time showing great financial health properties. MSF has a correct valuation and a medium growth rate. These ratings would make MSF suitable for 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.
- MSF had positive earnings in each of the past 5 years.
- Each year in the past 5 years MSF had a positive operating cash flow.
1.2 Ratios
- MSF's Return On Assets of 16.49% is amongst the best of the industry. MSF outperforms 90.40% of its industry peers.
- MSF has a Return On Equity of 28.90%. This is amongst the best in the industry. MSF outperforms 85.60% of its industry peers.
- MSF has a better Return On Invested Capital (22.25%) than 93.60% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MSF is significantly above the industry average of 12.89%.
| 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
- The Profit Margin of MSF (35.71%) is better than 93.60% of its industry peers.
- MSF's Profit Margin has improved in the last couple of years.
- MSF has a Operating Margin of 46.27%. This is amongst the best in the industry. MSF outperforms 97.60% of its industry peers.
- In the last couple of years the Operating Margin of MSF has grown nicely.
- MSF has a Gross Margin of 68.76%. This is comparable to the rest of the industry: MSF outperforms 42.40% of its industry peers.
- 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 | 46.27% | ||
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MSF is creating value.
- Compared to 1 year ago, MSF has about the same amount of shares outstanding.
- Compared to 5 years ago, MSF has less shares outstanding
- The debt/assets ratio for MSF has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 9.38 indicates that MSF is not in any danger for bankruptcy at the moment.
- MSF's Altman-Z score of 9.38 is amongst the best of the industry. MSF outperforms 88.00% of its industry peers.
- MSF has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
- MSF has a better Debt to FCF ratio (1.25) than 72.00% of its industry peers.
- MSF has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.24, MSF is in line with its industry, outperforming 53.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.38 |
ROIC/WACC2.05
WACC10.88%
2.3 Liquidity
- MSF has a Current Ratio of 1.40. 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 Current ratio (1.40) which is comparable to the rest of the industry.
- MSF has a Quick Ratio of 1.39. 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 of 1.39. This is comparable to the rest of the industry: MSF outperforms 51.20% of its industry peers.
- MSF 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.
- The Earnings Per Share has been growing by 18.86% on average over the past years. This is quite good.
- MSF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.59%.
- The Revenue has been growing by 14.52% on average over the past years. This is quite good.
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
- 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.
- The Revenue is expected to grow by 15.04% on average over the next years. This is quite good.
EPS Next Y22.64%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
EPS Next 5Y18.83%
Revenue Next Year17.03%
Revenue Next 2Y15.87%
Revenue Next 3Y15.99%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 31.94, MSF can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 65.60% of the companies listed in the same industry.
- MSF's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
- MSF is valuated rather expensively with a Price/Forward Earnings ratio of 24.18.
- 66.40% of the companies in the same industry are more expensive than MSF, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, MSF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 24.18 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 62.40% of the companies listed in the same industry.
- MSF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.04 | ||
| EV/EBITDA | 19.13 |
4.3 Compensation for Growth
- MSF's 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 18.24% in the coming years.
PEG (NY)1.41
PEG (5Y)1.69
EPS Next 2Y18.39%
EPS Next 3Y18.24%
5. Dividend
5.1 Amount
- MSF has a yearly dividend return of 0.76%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.62, MSF pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.76, MSF pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
- The dividend of MSF is nicely growing with an annual growth rate of 10.24%!
Dividend Growth(5Y)10.24%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 23.52% of the earnings are spent on dividend by MSF. This is a low number and sustainable payout ratio.
- The dividend of MSF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.52%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
FRA:MSF (1/15/2026, 5:25:51 PM)
396.75
-0.55 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners75.56%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.95T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts85.97
Price Target540.03 (36.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend2.78
Dividend Growth(5Y)10.24%
DP23.52%
Div Incr Years6
Div Non Decr Years6
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)-0.31%
PT rev (3m)2.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)5.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 24.18 | ||
| P/S | 11.69 | ||
| P/FCF | 44.04 | ||
| P/OCF | 23.37 | ||
| P/B | 9.46 | ||
| P/tB | 15.45 | ||
| EV/EBITDA | 19.13 |
EPS(TTM)12.42
EY3.13%
EPS(NY)16.41
Fwd EY4.14%
FCF(TTM)9.01
FCFY2.27%
OCF(TTM)16.98
OCFY4.28%
SpS33.93
BVpS41.93
TBVpS25.68
PEG (NY)1.41
PEG (5Y)1.69
Graham Number108.24
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 | 9.38 |
F-Score6
WACC10.88%
ROIC/WACC2.05
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 Y22.64%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
EPS Next 5Y18.83%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year17.03%
Revenue Next 2Y15.87%
Revenue Next 3Y15.99%
Revenue Next 5Y15.04%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year58.37%
EBIT Next 3Y29.48%
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 / 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 31.94 and the Price/Book (PB) ratio is 9.46.
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 23.52%.