MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MSF - US5949181045 - Common Stock
414.1 EUR
+0.65 (+0.16%)
We assign a fundamental rating of 7 out of 10 to MSF. MSF was compared to 116 industry peers in the Software industry. Both the health and profitability get an excellent rating, making MSF a very profitable company, without any liquidiy or solvency issues. MSF is quite expensive at the moment. It does show a decent growth rate. These ratings would make MSF suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year MSF was profitable.
MSF had a positive operating cash flow in the past year.
In the past 5 years MSF has always been profitable.
MSF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.49%, MSF belongs to the top of the industry, outperforming 90.43% of the companies in the same industry.
MSF's Return On Equity of 28.90% is amongst the best of the industry. MSF outperforms 86.09% of its industry peers.
MSF's Return On Invested Capital of 22.25% is amongst the best of the industry. MSF outperforms 93.04% 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 92.17% of its industry peers.
In the last couple of years the Profit Margin of MSF has grown nicely.
The Operating Margin of MSF (46.27%) is better than 95.65% of its industry peers.
In the last couple of years the Operating Margin of MSF has grown nicely.
The Gross Margin of MSF (68.76%) is comparable to the rest of the industry.
MSF's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for MSF has been reduced compared to 5 years ago.
The debt/assets ratio for MSF has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.79 indicates that MSF is not in any danger for bankruptcy at the moment.
MSF has a better Altman-Z score (9.79) than 89.57% 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 Debt to FCF ratio of 1.25. This is in the better half of the industry: MSF outperforms 74.78% 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.
MSF 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 | 9.79 |
ROIC/WACC2.03
WACC10.94%
2.3 Liquidity
A Current Ratio of 1.40 indicates that MSF should not have too much problems paying its short term obligations.
MSF has a Current ratio of 1.40. This is comparable to the rest of the industry: MSF outperforms 48.70% of its industry peers.
A Quick Ratio of 1.39 indicates that MSF should not have too much problems paying its short term obligations.
MSF has a Quick ratio (1.39) which is comparable to the rest of the industry.
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 | 1.4 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.39% over the past year.
MSF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.86% yearly.
Looking at the last year, MSF shows a quite strong growth in Revenue. The Revenue has grown by 15.59% in the last year.
MSF 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
MSF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.83% yearly.
Based on estimates for the next years, MSF will show a quite strong growth in Revenue. The Revenue will grow by 15.04% on average per year.
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
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
MSF is valuated quite expensively with a Price/Earnings ratio of 33.72.
60.87% of the companies in the same industry are more expensive than MSF, based on the Price/Earnings ratio.
MSF's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.59.
MSF is valuated quite expensively with a Price/Forward Earnings ratio of 25.52.
The rest of the industry has a similar Price/Forward Earnings ratio as MSF.
The average S&P500 Price/Forward Earnings ratio is at 24.03. MSF is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.72 | ||
| Fwd PE | 25.52 |
4.2 Price Multiples
MSF's Enterprise Value to EBITDA ratio is in line with the industry average.
MSF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.5 | ||
| EV/EBITDA | 20.2 |
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 18.25% in the coming years.
PEG (NY)1.48
PEG (5Y)1.79
EPS Next 2Y18.41%
EPS Next 3Y18.25%
5. Dividend
5.1 Amount
MSF has a yearly dividend return of 0.75%, which is pretty low.
Compared to an average industry Dividend Yield of 0.66, MSF pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.75, MSF pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
MSF pays out 23.52% of its income as dividend. This is a sustainable payout ratio.
The dividend of MSF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.52%
EPS Next 2Y18.41%
EPS Next 3Y18.25%
FRA:MSF (12/23/2025, 7:00:00 PM)
414.1
+0.65 (+0.16%)
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 Cap3.08T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend2.77
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)0.87%
PT rev (3m)0.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)5.04%
EPS NY rev (3m)5.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.72 | ||
| Fwd PE | 25.52 | ||
| P/S | 12.35 | ||
| P/FCF | 46.5 | ||
| P/OCF | 24.67 | ||
| P/B | 9.99 | ||
| P/tB | 16.31 | ||
| EV/EBITDA | 20.2 |
EPS(TTM)12.28
EY2.97%
EPS(NY)16.23
Fwd EY3.92%
FCF(TTM)8.91
FCFY2.15%
OCF(TTM)16.79
OCFY4.05%
SpS33.54
BVpS41.45
TBVpS25.38
PEG (NY)1.48
PEG (5Y)1.79
Graham Number107.01
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 | 9.79 |
F-Score6
WACC10.94%
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)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 / MSF.DE FAQ
Can you provide the ChartMill fundamental rating for MICROSOFT CORP?
ChartMill assigns a fundamental rating of 7 / 10 to MSF.DE.
Can you provide the valuation status for MICROSOFT CORP?
ChartMill assigns a valuation rating of 3 / 10 to MICROSOFT CORP (MSF.DE). This can be considered as Overvalued.
Can you provide the profitability details for MICROSOFT CORP?
MICROSOFT CORP (MSF.DE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for MSF stock?
The Price/Earnings (PE) ratio for MICROSOFT CORP (MSF.DE) is 33.72 and the Price/Book (PB) ratio is 9.99.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.