MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - FRA:MSF - US5949181045 - Common Stock
432 EUR
-12.1 (-2.72%)
MSF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 103 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
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.
In the past 5 years MSF always reported a positive cash flow from operatings.
1.2 Ratios
MSF's Return On Assets of 16.49% is amongst the best of the industry. MSF outperforms 92.23% of its industry peers.
With an excellent Return On Equity value of 28.90%, MSF belongs to the best of the industry, outperforming 87.38% of the companies in the same industry.
With an excellent Return On Invested Capital value of 22.25%, MSF belongs to the best of the industry, outperforming 93.20% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MSF is significantly above the industry average of 12.76%.
| 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 93.20% of its industry peers.
In the last couple of years the Profit Margin of MSF has grown nicely.
MSF's Operating Margin of 46.27% is amongst the best of the industry. MSF outperforms 96.12% of its industry peers.
MSF's Operating Margin has improved in the last couple of years.
MSF has a Gross Margin of 68.76%. This is comparable to the rest of the industry: MSF outperforms 45.63% of its industry peers.
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
MSF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MSF has about the same amout of shares outstanding than it did 1 year ago.
MSF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MSF has been reduced compared to a year ago.
2.2 Solvency
MSF has an Altman-Z score of 10.16. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
MSF's Altman-Z score of 10.16 is amongst the best of the industry. MSF outperforms 90.29% 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 75.73% 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 | 10.16 |
ROIC/WACC2.04
WACC10.92%
2.3 Liquidity
A Current Ratio of 1.40 indicates that MSF should not have too much problems paying its short term obligations.
The Current ratio of MSF (1.40) 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 (1.39) which is comparable to the rest of the 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
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.
The Revenue has grown by 15.59% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 15.23% on average over the next years. This is quite good.
MSF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.67% yearly.
EPS Next Y15.86%
EPS Next 2Y16.45%
EPS Next 3Y17.21%
EPS Next 5Y15.23%
Revenue Next Year15.46%
Revenue Next 2Y14.93%
Revenue Next 3Y15.01%
Revenue Next 5Y12.67%
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 34.31.
Compared to the rest of the industry, the Price/Earnings ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 66.99% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.13. MSF is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 26.84 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 (22.35), we can say MSF is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.31 | ||
| Fwd PE | 26.84 |
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 | 47.3 | ||
| EV/EBITDA | 21.14 |
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 17.21% in the coming years.
PEG (NY)2.16
PEG (5Y)1.82
EPS Next 2Y16.45%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
MSF has a yearly dividend return of 0.69%, which is pretty low.
Compared to an average industry Dividend Yield of 2.15, MSF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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.
MSF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.52%
EPS Next 2Y16.45%
EPS Next 3Y17.21%
FRA:MSF (11/6/2025, 5:29:45 PM)
432
-12.1 (-2.72%)
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 Cap3211.13B
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts85.71
Price Target535.94 (24.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend2.8
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)-0.2%
PT rev (3m)14.98%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)1.64%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)2.66%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.31 | ||
| Fwd PE | 26.84 | ||
| P/S | 12.56 | ||
| P/FCF | 47.3 | ||
| P/OCF | 25.1 | ||
| P/B | 10.16 | ||
| P/tB | 16.6 | ||
| EV/EBITDA | 21.14 |
EPS(TTM)12.59
EY2.91%
EPS(NY)16.1
Fwd EY3.73%
FCF(TTM)9.13
FCFY2.11%
OCF(TTM)17.21
OCFY3.98%
SpS34.4
BVpS42.5
TBVpS26.03
PEG (NY)2.16
PEG (5Y)1.82
Graham Number109.73
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 | 10.16 |
F-Score6
WACC10.92%
ROIC/WACC2.04
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 Y15.86%
EPS Next 2Y16.45%
EPS Next 3Y17.21%
EPS Next 5Y15.23%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year15.46%
Revenue Next 2Y14.93%
Revenue Next 3Y15.01%
Revenue Next 5Y12.67%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year51.87%
EBIT Next 3Y27.27%
EBIT Next 5Y25.57%
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 34.31 and the Price/Book (PB) ratio is 10.16.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.