MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MSF - US5949181045 - Common Stock
413.65 EUR
+3.75 (+0.91%)
We assign a fundamental rating of 7 out of 10 to MSF. MSF was compared to 116 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 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
MSF had positive earnings in the past year.
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
MSF's Return On Assets of 16.49% is amongst the best of the industry. MSF outperforms 90.52% of its industry peers.
MSF has a Return On Equity of 28.90%. This is amongst the best in the industry. MSF outperforms 87.07% of its industry peers.
MSF has a better Return On Invested Capital (22.25%) than 92.24% 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 13.28%.
| 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 better Profit Margin (35.71%) than 92.24% of its industry peers.
MSF's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 46.27%, MSF belongs to the best of the industry, outperforming 94.83% of the companies in the same industry.
In the last couple of years the Operating Margin of MSF has grown nicely.
MSF has a Gross Margin (68.76%) which 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
MSF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MSF remains at a similar level compared to 1 year ago.
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
An Altman-Z score of 9.63 indicates that MSF is not in any danger for bankruptcy at the moment.
MSF's Altman-Z score of 9.63 is amongst the best of the industry. MSF outperforms 90.52% 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.
The Debt to FCF ratio of MSF (1.25) is better than 74.14% 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.
With a Debt to Equity ratio value of 0.24, MSF perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.63 |
ROIC/WACC2.08
WACC10.72%
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.
Looking at the Quick ratio, with a value of 1.39, MSF is in line with its industry, outperforming 52.59% 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 | 1.4 | ||
| 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.
MSF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.59%.
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
MSF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.83% yearly.
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 Y16.96%
EPS Next 2Y17.68%
EPS Next 3Y18.52%
EPS Next 5Y18.83%
Revenue Next Year16.4%
Revenue Next 2Y15.53%
Revenue Next 3Y15.94%
Revenue Next 5Y15.04%
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.
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
MSF is valuated quite expensively with a Price/Earnings ratio of 33.36.
MSF's Price/Earnings ratio is a bit cheaper when compared to the industry. MSF is cheaper than 64.66% of the companies in the same industry.
MSF's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.41.
A Price/Forward Earnings ratio of 25.55 indicates a quite expensive valuation of MSF.
MSF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MSF is cheaper than 64.66% of the companies in the same industry.
MSF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.36 | ||
| Fwd PE | 25.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSF is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as MSF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.97 | ||
| EV/EBITDA | 19.78 |
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 18.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.97
PEG (5Y)1.77
EPS Next 2Y17.68%
EPS Next 3Y18.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, MSF is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.22, MSF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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 2Y17.68%
EPS Next 3Y18.52%
FRA:MSF (12/5/2025, 9:48:50 AM)
413.65
+3.75 (+0.91%)
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 Cap3.07T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86.29
Price Target544.48 (31.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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)3.74%
PT rev (3m)2.83%
EPS NQ rev (1m)4.34%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)0.96%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.36 | ||
| Fwd PE | 25.55 | ||
| P/S | 12.21 | ||
| P/FCF | 45.97 | ||
| P/OCF | 24.39 | ||
| P/B | 9.88 | ||
| P/tB | 16.13 | ||
| EV/EBITDA | 19.78 |
EPS(TTM)12.4
EY3%
EPS(NY)16.19
Fwd EY3.91%
FCF(TTM)9
FCFY2.18%
OCF(TTM)16.96
OCFY4.1%
SpS33.89
BVpS41.87
TBVpS25.64
PEG (NY)1.97
PEG (5Y)1.77
Graham Number108.09
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
WACC10.72%
ROIC/WACC2.08
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 Y16.96%
EPS Next 2Y17.68%
EPS Next 3Y18.52%
EPS Next 5Y18.83%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year16.4%
Revenue Next 2Y15.53%
Revenue Next 3Y15.94%
Revenue Next 5Y15.04%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year51.87%
EBIT Next 3Y30.06%
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.
Can you provide the valuation status for MICROSOFT CORP?
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.
Can you provide the PE and PB ratios for MSF stock?
The Price/Earnings (PE) ratio for MICROSOFT CORP (MSF.DE) is 33.36 and the Price/Book (PB) ratio is 9.88.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.