MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MSF - US5949181045 - Common Stock
409.55 EUR
+0.05 (+0.01%)
MSF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 115 industry peers in the Software industry. MSF gets an excellent profitability rating and is at the same time showing great financial health properties. MSF is not valued too expensively and it also shows a decent growth rate. With these ratings, MSF could be worth investigating further 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
With an excellent Return On Assets value of 16.49%, MSF belongs to the best of the industry, outperforming 93.86% of the companies in the same industry.
MSF's Return On Equity of 28.90% is amongst the best of the industry. MSF outperforms 88.60% of its industry peers.
MSF has a Return On Invested Capital of 22.25%. This is amongst the best in the industry. MSF outperforms 94.74% 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 12.49%.
| 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
MSF has a Profit Margin of 35.71%. This is amongst the best in the industry. MSF outperforms 93.86% of its industry peers.
MSF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 46.27%, MSF belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
MSF's Operating Margin has improved in the last couple of years.
The Gross Margin of MSF (68.76%) 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 | 46.27% | ||
| 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
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.
The number of shares outstanding for MSF has been reduced compared to 5 years ago.
MSF has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.63 indicates that MSF is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.63, MSF belongs to the best of the industry, outperforming 87.72% of the companies in the same industry.
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 73.68% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that MSF is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.24, MSF perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.63 |
ROIC/WACC2.05
WACC10.86%
2.3 Liquidity
A Current Ratio of 1.40 indicates that MSF should not have too much problems paying its short term obligations.
With a Current ratio value of 1.40, MSF perfoms like the industry average, outperforming 50.88% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that MSF should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.39, MSF perfoms like the industry average, outperforming 54.39% 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 | 1.4 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
MSF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.39%, 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 15.59%.
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)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.
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 Y22.64%
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
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.
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
The Price/Earnings ratio is 33.05, which means the current valuation is very expensive for MSF.
Based on the Price/Earnings ratio, MSF is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
MSF's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 25.01, which means the current valuation is very expensive for MSF.
Based on the Price/Forward Earnings ratio, MSF is valued a bit cheaper than 63.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MSF to the average of the S&P500 Index (23.88), we can say MSF is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 25.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MSF is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as MSF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.55 | ||
| EV/EBITDA | 19.78 |
4.3 Compensation for Growth
MSF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MSF has an outstanding profitability rating, which may justify a higher PE ratio.
MSF's earnings are expected to grow with 18.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)1.75
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.
MSF's Dividend Yield is a higher than the industry average which is at 0.52.
With a Dividend Yield of 0.76, MSF pays less dividend than the S&P500 average, which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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 23.52% 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.
DP23.52%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
FRA:MSF (1/9/2026, 7:00:00 PM)
409.55
+0.05 (+0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners75.56%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3.04T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts85.97
Price Target540.03 (31.86%)
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)-0.82%
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 | 33.05 | ||
| Fwd PE | 25.01 | ||
| P/S | 12.1 | ||
| P/FCF | 45.55 | ||
| P/OCF | 24.17 | ||
| P/B | 9.79 | ||
| P/tB | 15.98 | ||
| EV/EBITDA | 19.78 |
EPS(TTM)12.39
EY3.03%
EPS(NY)16.38
Fwd EY4%
FCF(TTM)8.99
FCFY2.2%
OCF(TTM)16.95
OCFY4.14%
SpS33.86
BVpS41.84
TBVpS25.62
PEG (NY)1.46
PEG (5Y)1.75
Graham Number108
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 | 9.63 |
F-Score6
WACC10.86%
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 33.05 and the Price/Book (PB) ratio is 9.79.
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%.