MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - FRA:MSF - US5949181045 - Common Stock
437.05 EUR
-3.9 (-0.88%)
MSF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 110 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 quite expensive at the moment. It does show a decent growth rate. With these ratings, MSF could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
MSF had positive earnings in the past year.
In the past year MSF had a positive cash flow from operations.
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
With an excellent Return On Assets value of 16.45%, MSF belongs to the best of the industry, outperforming 90.35% of the companies in the same industry.
MSF's Return On Equity of 29.65% is amongst the best of the industry. MSF outperforms 86.84% of its industry peers.
MSF has a Return On Invested Capital of 22.08%. This is amongst the best in the industry. MSF outperforms 91.23% of its industry peers.
MSF had an Average Return On Invested Capital over the past 3 years of 22.94%. This is significantly above the industry average of 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.45% | ||
| ROE | 29.65% | ||
| ROIC | 22.08% |
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
With an excellent Profit Margin value of 36.15%, MSF belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
MSF's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 45.62%, MSF belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
In the last couple of years the Operating Margin of MSF has grown nicely.
MSF's Gross Margin of 68.82% is in line compared to the rest of the industry. MSF outperforms 46.49% of its industry peers.
MSF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.62% | ||
| PM (TTM) | 36.15% | ||
| GM | 68.82% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSF is creating value.
Compared to 1 year ago, MSF has about the same amount of shares outstanding.
MSF has less shares outstanding than it did 5 years ago.
MSF has a better debt/assets ratio than last year.
2.2 Solvency
MSF has an Altman-Z score of 10.04. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
MSF has a Altman-Z score of 10.04. This is amongst the best in the industry. MSF outperforms 89.47% 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.
The Debt to FCF ratio of MSF (1.25) is better than 71.93% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that MSF is not too dependend on debt financing.
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 | 10.04 |
ROIC/WACC1.98
WACC11.13%
2.3 Liquidity
MSF has a Current Ratio of 1.35. This is a normal value and indicates that MSF is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.35, MSF is in line with its industry, outperforming 49.12% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that MSF should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.35, MSF is in line with its industry, outperforming 52.63% of the companies in the same industry.
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 | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
MSF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.50%, which is quite good.
Measured over the past years, MSF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.86% on average per year.
MSF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.93%.
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)15.5%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%23.73%
Revenue 1Y (TTM)14.93%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.1%
3.2 Future
The Earnings Per Share is expected to grow by 15.23% on average over the next years. This is quite good.
Based on estimates for the next years, MSF will show a quite strong growth in Revenue. The Revenue will grow by 12.67% on average per year.
EPS Next Y15.9%
EPS Next 2Y16.5%
EPS Next 3Y17.55%
EPS Next 5Y15.23%
Revenue Next Year15.55%
Revenue Next 2Y15.01%
Revenue Next 3Y15.13%
Revenue Next 5Y12.67%
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
Based on the Price/Earnings ratio of 37.42, the valuation of MSF can be described as expensive.
62.28% of the companies in the same industry are more expensive than MSF, based on the Price/Earnings ratio.
MSF is valuated rather expensively when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 32.29 indicates a quite expensive valuation of MSF.
MSF's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MSF to the average of the S&P500 Index (22.94), we can say MSF is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.42 | ||
| Fwd PE | 32.29 |
4.2 Price Multiples
MSF's Enterprise Value to EBITDA is on the same level as the industry average.
MSF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.99 | ||
| EV/EBITDA | 22.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSF does not grow enough to justify the current Price/Earnings ratio.
MSF has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MSF's earnings are expected to grow with 17.55% in the coming years.
PEG (NY)2.35
PEG (5Y)1.98
EPS Next 2Y16.5%
EPS Next 3Y17.55%
5. Dividend
5.1 Amount
MSF has a yearly dividend return of 0.71%, which is pretty low.
MSF's Dividend Yield is rather good when compared to the industry average which is at 2.80. MSF pays more dividend than 80.70% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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 23.65% 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.
DP23.65%
EPS Next 2Y16.5%
EPS Next 3Y17.55%
FRA:MSF (10/17/2025, 7:00:00 PM)
437.05
-3.9 (-0.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners74.31%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3248.67B
Analysts85.71
Price Target524.87 (20.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend2.77
Dividend Growth(5Y)10.24%
DP23.65%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.77%
Min EPS beat(2)5.34%
Max EPS beat(2)6.2%
EPS beat(4)4
Avg EPS beat(4)4.44%
Min EPS beat(4)1.79%
Max EPS beat(4)6.2%
EPS beat(8)7
Avg EPS beat(8)4.04%
EPS beat(12)10
Avg EPS beat(12)3.55%
EPS beat(16)12
Avg EPS beat(16)3.12%
Revenue beat(2)2
Avg Revenue beat(2)0.97%
Min Revenue beat(2)0.4%
Max Revenue beat(2)1.54%
Revenue beat(4)2
Avg Revenue beat(4)0.21%
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)4
Avg Revenue beat(12)-0.18%
Revenue beat(16)5
Avg Revenue beat(16)-0.36%
PT rev (1m)-2.26%
PT rev (3m)12.61%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)2.7%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.42 | ||
| Fwd PE | 32.29 | ||
| P/S | 13.47 | ||
| P/FCF | 52.99 | ||
| P/OCF | 27.87 | ||
| P/B | 11.05 | ||
| P/tB | 18.85 | ||
| EV/EBITDA | 22.9 |
EPS(TTM)11.68
EY2.67%
EPS(NY)13.53
Fwd EY3.1%
FCF(TTM)8.25
FCFY1.89%
OCF(TTM)15.68
OCFY3.59%
SpS32.45
BVpS39.56
TBVpS23.19
PEG (NY)2.35
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.45% | ||
| ROE | 29.65% | ||
| ROCE | 26.9% | ||
| ROIC | 22.08% | ||
| ROICexc | 27.53% | ||
| ROICexgc | 43.75% | ||
| OM | 45.62% | ||
| PM (TTM) | 36.15% | ||
| GM | 68.82% | ||
| FCFM | 25.42% |
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%
ROICexcg growth 3Y-18.02%
ROICexcg 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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 189.01% | ||
| Cap/Sales | 22.91% | ||
| Interest Coverage | 80.33 | ||
| Cash Conversion | 83.7% | ||
| Profit Quality | 70.32% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 10.04 |
F-Score5
WACC11.13%
ROIC/WACC1.98
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)15.5%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%23.73%
EPS Next Y15.9%
EPS Next 2Y16.5%
EPS Next 3Y17.55%
EPS Next 5Y15.23%
Revenue 1Y (TTM)14.93%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.1%
Revenue Next Year15.55%
Revenue Next 2Y15.01%
Revenue Next 3Y15.13%
Revenue Next 5Y12.67%
EBIT growth 1Y17.45%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year51.87%
EBIT Next 3Y27.27%
EBIT Next 5Y25.57%
FCF growth 1Y-3.32%
FCF growth 3Y3.2%
FCF growth 5Y9.62%
OCF growth 1Y14.86%
OCF growth 3Y15.21%
OCF growth 5Y17.55%