MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - FRA:MSF - US5949181045 - Common Stock
431.55 EUR
-1.65 (-0.38%)
MSF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 103 industry peers in the Software industry. MSF has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MSF is quite expensive at the moment. It does show a decent growth rate. These ratings could make MSF a good candidate 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.
In the past 5 years MSF always reported a positive cash flow from operatings.
1.2 Ratios
MSF has a better Return On Assets (16.45%) than 92.23% of its industry peers.
With an excellent Return On Equity value of 29.65%, MSF belongs to the best of the industry, outperforming 86.41% of the companies in the same industry.
MSF has a better Return On Invested Capital (22.08%) than 89.32% 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 12.80%.
| 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
MSF has a better Profit Margin (36.15%) than 93.20% of its industry peers.
In the last couple of years the Profit Margin of MSF has grown nicely.
With an excellent Operating Margin value of 45.62%, MSF belongs to the best of the industry, outperforming 95.15% of the companies in the same industry.
MSF's Operating Margin has improved in the last couple of years.
MSF has a Gross Margin of 68.82%. This is comparable to the rest of the industry: MSF outperforms 44.66% 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
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.
Compared to 5 years ago, MSF has less shares outstanding
MSF has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.05 indicates that MSF is not in any danger for bankruptcy at the moment.
MSF's Altman-Z score of 10.05 is amongst the best of the industry. MSF outperforms 91.26% 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's Debt to FCF ratio of 1.25 is fine compared to the rest of the industry. MSF outperforms 74.76% of its industry peers.
MSF has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MSF (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 10.05 |
ROIC/WACC2.03
WACC10.9%
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.
With a Current ratio value of 1.35, MSF perfoms like the industry average, outperforming 51.46% 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.
With a Quick ratio value of 1.35, MSF perfoms like the industry average, outperforming 57.28% of the companies in the same 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 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%.
The Revenue has been growing by 14.52% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 11.89% on average over the next years. This is quite good.
EPS Next Y15.95%
EPS Next 2Y16.49%
EPS Next 3Y17.54%
EPS Next 5Y15.23%
Revenue Next Year15.52%
Revenue Next 2Y14.96%
Revenue Next 3Y14.93%
Revenue Next 5Y11.89%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 37.36 indicates a quite expensive valuation of MSF.
Compared to the rest of the industry, the Price/Earnings ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 64.08% of the companies listed in the same industry.
MSF is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.22, MSF can be considered very expensive at the moment.
MSF's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, MSF is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.36 | ||
| Fwd PE | 32.22 |
4.2 Price Multiples
MSF's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.89 | ||
| EV/EBITDA | 22.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MSF may justify a higher PE ratio.
MSF's earnings are expected to grow with 17.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.34
PEG (5Y)1.98
EPS Next 2Y16.49%
EPS Next 3Y17.54%
5. Dividend
5.1 Amount
MSF has a yearly dividend return of 0.66%, which is pretty low.
MSF's Dividend Yield is a higher than the industry average which is at 2.08.
Compared to an average S&P500 Dividend Yield of 2.38, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
MSF pays out 23.65% 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.
DP23.65%
EPS Next 2Y16.49%
EPS Next 3Y17.54%
FRA:MSF (9/17/2025, 11:59:26 AM)
431.55
-1.65 (-0.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners74.49%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3207.78B
Analysts85.71
Price Target537 (24.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend2.76
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)3.06%
PT rev (3m)18.48%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)2.9%
EPS NY rev (1m)2.74%
EPS NY rev (3m)2.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)1.77%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.36 | ||
| Fwd PE | 32.22 | ||
| P/S | 13.44 | ||
| P/FCF | 52.89 | ||
| P/OCF | 27.82 | ||
| P/B | 11.03 | ||
| P/tB | 18.81 | ||
| EV/EBITDA | 22.94 |
EPS(TTM)11.55
EY2.68%
EPS(NY)13.39
Fwd EY3.1%
FCF(TTM)8.16
FCFY1.89%
OCF(TTM)15.51
OCFY3.6%
SpS32.1
BVpS39.14
TBVpS22.94
PEG (NY)2.34
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 | 10.05 |
F-Score5
WACC10.9%
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)15.5%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%23.73%
EPS Next Y15.95%
EPS Next 2Y16.49%
EPS Next 3Y17.54%
EPS Next 5Y15.23%
Revenue 1Y (TTM)14.93%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.1%
Revenue Next Year15.52%
Revenue Next 2Y14.96%
Revenue Next 3Y14.93%
Revenue Next 5Y11.89%
EBIT growth 1Y17.45%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year49.13%
EBIT Next 3Y27.09%
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%