MICROSOFT CORP (MSF.DE) Fundamental Analysis & Valuation
FRA:MSF • US5949181045
Current stock price
363.35 EUR
-0.55 (-0.15%)
Last:
This MSF.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. MSF.DE Profitability Analysis
1.1 Basic Checks
- MSF had positive earnings in the past year.
- MSF had a positive operating cash flow in the past year.
- Each year in the past 5 years MSF has been profitable.
- MSF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MSF has a better Return On Assets (17.93%) than 91.96% of its industry peers.
- MSF's Return On Equity of 30.51% is amongst the best of the industry. MSF outperforms 88.39% of its industry peers.
- The Return On Invested Capital of MSF (21.86%) is better than 94.64% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MSF is significantly above the industry average of 12.32%.
| 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 has a better Profit Margin (39.04%) than 99.11% 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 98.21% of its industry peers.
- In the last couple of years the Operating Margin of MSF has grown nicely.
- 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. MSF.DE Health Analysis
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.
- 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.
- Compared to 1 year ago, MSF has an improved debt to assets ratio.
2.2 Solvency
- MSF has an Altman-Z score of 8.75. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
- MSF's Altman-Z score of 8.75 is amongst the best of the industry. MSF outperforms 91.07% 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.
- MSF has a Debt to FCF ratio of 1.30. This is in the better half of the industry: MSF outperforms 67.86% of its industry peers.
- MSF has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.23, MSF is in line with its industry, outperforming 51.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 8.75 |
ROIC/WACC2.03
WACC10.75%
2.3 Liquidity
- MSF has a Current 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.
- Looking at the Current ratio, with a value of 1.39, MSF is in line with its industry, outperforming 50.89% of the companies in the same industry.
- A Quick Ratio of 1.38 indicates that MSF should not have too much problems paying its short term obligations.
- MSF has a Quick ratio of 1.38. This is comparable to the rest of the industry: MSF outperforms 53.57% 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 | 1.39 | ||
| Quick Ratio | 1.38 |
3. MSF.DE Growth Analysis
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.
- MSF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.67%.
- 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)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 18.94% on average per year.
- Based on estimates for the next years, MSF will show a quite strong growth in Revenue. The Revenue will grow by 15.74% on average per year.
EPS Next Y24.06%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
EPS Next 5Y18.94%
Revenue Next Year17.49%
Revenue Next 2Y16.61%
Revenue Next 3Y16.48%
Revenue Next 5Y15.74%
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. MSF.DE Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 27.59, which means the current valuation is very expensive for MSF.
- 61.61% 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 similar valuation than the S&P500 average which is at 26.54.
- A Price/Forward Earnings ratio of 21.90 indicates a rather expensive valuation of MSF.
- MSF's Price/Forward Earnings is on the same level as the industry average.
- MSF is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.59 | ||
| Fwd PE | 21.9 |
4.2 Price Multiples
- 60.71% of the companies in the same industry are more expensive than MSF, based on the Enterprise Value to EBITDA ratio.
- MSF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.71 | ||
| EV/EBITDA | 17.25 |
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.
- MSF's earnings are expected to grow with 18.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)1.46
EPS Next 2Y19.21%
EPS Next 3Y18.63%
5. MSF.DE Dividend Analysis
5.1 Amount
- MSF has a yearly dividend return of 0.88%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.74, MSF pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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 Years7
Div Non Decr Years7
5.3 Sustainability
- MSF pays out 21.19% 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.
DP21.19%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
MSF.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:MSF (4/29/2026, 7:00:00 PM)
363.35
-0.55 (-0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength6.83
Industry Growth87.58
Earnings (Last)01-28 2026-01-28/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners75.75%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.70T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.23
Price Target514.56 (41.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend2.77
Dividend Growth(5Y)10.24%
DP21.19%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.54%
Min EPS beat(2)2.62%
Max EPS beat(2)10.46%
EPS beat(4)4
Avg EPS beat(4)6.15%
Min EPS beat(4)2.62%
Max EPS beat(4)10.46%
EPS beat(8)7
Avg EPS beat(8)3.96%
EPS beat(12)11
Avg EPS beat(12)4.71%
EPS beat(16)12
Avg EPS beat(16)3.16%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)1.09%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)1.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)0.12%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)-0.82%
PT rev (3m)-5.41%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)1.26%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.59 | ||
| Fwd PE | 21.9 | ||
| P/S | 10.32 | ||
| P/FCF | 40.71 | ||
| P/OCF | 19.63 | ||
| P/B | 8.06 | ||
| P/tB | 12.56 | ||
| EV/EBITDA | 17.25 |
EPS(TTM)13.17
EY3.62%
EPS(NY)16.6
Fwd EY4.57%
FCF(TTM)8.93
FCFY2.46%
OCF(TTM)18.51
OCFY5.09%
SpS35.22
BVpS45.07
TBVpS28.94
PEG (NY)1.15
PEG (5Y)1.46
Graham Number115.562 (-68.2%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.93% | ||
| ROE | 30.51% | ||
| ROCE | 26.63% | ||
| ROIC | 21.86% | ||
| ROICexc | 26.24% | ||
| ROICexgc | 38.24% | ||
| OM | 46.67% | ||
| PM (TTM) | 39.04% | ||
| GM | 68.59% | ||
| FCFM | 25.34% |
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 | 0.23 | ||
| Debt/FCF | 1.3 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 222.84% | ||
| Cap/Sales | 27.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.25% | ||
| Profit Quality | 64.91% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 8.75 |
F-Score6
WACC10.75%
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)23.83%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%28.17%
EPS Next Y24.06%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
EPS Next 5Y18.94%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.49%
Revenue Next 2Y16.61%
Revenue Next 3Y16.48%
Revenue Next 5Y15.74%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year55.69%
EBIT Next 3Y29%
EBIT Next 5Y23.22%
FCF growth 1Y14.78%
FCF growth 3Y3.2%
FCF growth 5Y9.62%
OCF growth 1Y56.37%
OCF growth 3Y15.21%
OCF growth 5Y17.55%
MICROSOFT CORP / MSF.DE Fundamental Analysis 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.
What is the profitability of MSF stock?
MICROSOFT CORP (MSF.DE) has a profitability rating of 8 / 10.
What is the financial health of MICROSOFT CORP (MSF.DE) stock?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.
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%.