MICROSOFT CORP (MSF.DE) Fundamental Analysis & Valuation

FRA:MSF • US5949181045

Current stock price

343.8 EUR
-19.55 (-5.38%)
Last:

This MSF.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. MSF.DE Profitability Analysis

1.1 Basic Checks

  • MSF had positive earnings in the past year.
  • In the past year MSF had a positive cash flow from operations.
  • MSF had positive earnings in each of the past 5 years.
  • Each year in the past 5 years MSF had a positive operating cash flow.
MSF.DE Yearly Net Income VS EBIT VS OCF VS FCFMSF.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

1.2 Ratios

  • With an excellent Return On Assets value of 17.93%, MSF belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
  • With an excellent Return On Equity value of 30.51%, MSF belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
  • MSF has a Return On Invested Capital of 21.86%. This is amongst the best in the industry. MSF outperforms 95.54% 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 12.32%.
Industry RankSector 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%
MSF.DE Yearly ROA, ROE, ROICMSF.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • With an excellent Profit Margin value of 39.04%, MSF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • MSF's Profit Margin has improved in the last couple of years.
  • MSF's Operating Margin of 46.67% is amongst the best of the industry. MSF outperforms 99.11% of its industry peers.
  • MSF's Operating Margin has improved in the last couple of years.
  • MSF has a Gross Margin (68.59%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of MSF has remained more or less at the same level.
Industry RankSector 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%
MSF.DE Yearly Profit, Operating, Gross MarginsMSF.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. MSF.DE Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSF is creating value.
  • The number of shares outstanding for MSF remains at a similar level compared to 1 year ago.
  • 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.
MSF.DE Yearly Shares OutstandingMSF.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
MSF.DE Yearly Total Debt VS Total AssetsMSF.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B

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.
  • With an excellent Altman-Z score value of 8.75, MSF belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
  • The Debt to FCF ratio of MSF is 1.30, which is an excellent value as it means it would take MSF, only 1.30 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 1.30, MSF is doing good in the industry, outperforming 68.75% of the companies in the same industry.
  • A Debt/Equity ratio of 0.23 indicates that MSF is not too dependend on debt financing.
  • MSF's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. MSF outperforms 52.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Altman-Z 8.75
ROIC/WACC2.02
WACC10.81%
MSF.DE Yearly LT Debt VS Equity VS FCFMSF.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B

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.
  • The Current ratio of MSF (1.39) is comparable to the rest of the industry.
  • A Quick Ratio of 1.38 indicates that MSF should not have too much problems paying its short term obligations.
  • The Quick ratio of MSF (1.38) 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 RankSector Rank
Current Ratio 1.39
Quick Ratio 1.38
MSF.DE Yearly Current Assets VS Current LiabilitesMSF.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

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.
  • Looking at the last year, MSF shows a quite strong growth in Revenue. The Revenue has grown by 16.67% in the last year.
  • The Revenue has been growing by 14.52% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 18.94% 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 15.74% yearly.
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

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • 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.
MSF.DE Yearly Revenue VS EstimatesMSF.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 200B 400B 600B
MSF.DE Yearly EPS VS EstimatesMSF.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40

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4

4. MSF.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 26.16, 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 63.39% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.77, MSF is valued at the same level.
  • MSF is valuated rather expensively with a Price/Forward Earnings ratio of 20.76.
  • Based on the Price/Forward Earnings ratio, MSF is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 21.75. MSF is around the same levels.
Industry RankSector Rank
PE 26.16
Fwd PE 20.76
MSF.DE Price Earnings VS Forward Price EarningsMSF.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 38.6
EV/EBITDA 17.26
MSF.DE Per share dataMSF.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
  • MSF's earnings are expected to grow with 18.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)1.39
EPS Next 2Y19.21%
EPS Next 3Y18.63%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

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.
  • With a Dividend Yield of 0.88, MSF pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector 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
MSF.DE Yearly Dividends per shareMSF.DE Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 21.19% of the earnings are spent on dividend by MSF. This is a low number and 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 Yearly Income VS Free CF VS DividendMSF.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B
MSF.DE Dividend Payout.MSF.DE Dividend Payout, showing the Payout Ratio.MSF.DE Dividend Payout.PayoutRetained Earnings

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MSF.DE Fundamentals: All Metrics, Ratios and Statistics

MICROSOFT CORP

FRA:MSF (4/30/2026, 5:29:41 PM)

343.8

-19.55 (-5.38%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength6.21
Industry Growth86.34
Earnings (Last)01-28
Earnings (Next)04-29
Inst Owners75.75%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.55T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.23
Price Target514.56 (49.67%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector Rank
PE 26.16
Fwd PE 20.76
P/S 9.78
P/FCF 38.6
P/OCF 18.62
P/B 7.65
P/tB 11.91
EV/EBITDA 17.26
EPS(TTM)13.14
EY3.82%
EPS(NY)16.56
Fwd EY4.82%
FCF(TTM)8.91
FCFY2.59%
OCF(TTM)18.47
OCFY5.37%
SpS35.14
BVpS44.97
TBVpS28.87
PEG (NY)1.09
PEG (5Y)1.39
Graham Number115.302 (-66.46%)
Profitability
Industry RankSector 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 RankSector 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
WACC10.81%
ROIC/WACC2.02
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%.