MICROSOFT CORP (MSF.DE) Fundamental Analysis & Valuation
FRA:MSF • US5949181045
Current stock price
363.85 EUR
+2.25 (+0.62%)
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
- In the past year MSF was profitable.
- 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 has a Return On Assets of 17.93%. This is amongst the best in the industry. MSF outperforms 91.60% of its industry peers.
- MSF's Return On Equity of 30.51% is amongst the best of the industry. MSF outperforms 87.39% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 21.86%, MSF belongs to the top of the industry, outperforming 93.28% 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 13.78%.
| 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
- Looking at the Profit Margin, with a value of 39.04%, MSF belongs to the top of the industry, outperforming 98.32% of the companies in the same industry.
- In the last couple of years the Profit Margin of MSF has grown nicely.
- With an excellent Operating Margin value of 46.67%, MSF belongs to the best of the industry, outperforming 97.48% of the companies in the same industry.
- MSF's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 68.59%, MSF perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- MSF's Gross Margin has been stable in the last couple of years.
| 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
- 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.
- Compared to 5 years ago, MSF has less shares outstanding
- MSF has a better debt/assets ratio than last year.
2.2 Solvency
- MSF has an Altman-Z score of 8.76. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.76, MSF belongs to the best of the industry, outperforming 87.39% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 1.30, MSF is in the better half of the industry, outperforming 65.55% 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 54.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 8.76 |
ROIC/WACC2.09
WACC10.48%
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.
- MSF has a Current ratio (1.39) which is comparable to the rest of the industry.
- MSF has a Quick Ratio of 1.38. 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 of 1.38. This is comparable to the rest of the industry: MSF outperforms 52.10% 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
- MSF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.83%, which is quite impressive.
- 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%.
- 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 16.18% 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 5Y16.18%
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
- Based on the Price/Earnings ratio of 27.84, the valuation of MSF can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 63.87% of the companies listed in the same industry.
- MSF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.66, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 22.09, MSF is valued on the expensive side.
- MSF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MSF is cheaper than 65.55% of the companies in the same industry.
- MSF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 38.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.84 | ||
| Fwd PE | 22.09 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 61.34% of the companies listed in the same industry.
- MSF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.07 | ||
| EV/EBITDA | 17.27 |
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)1.16
PEG (5Y)1.48
EPS Next 2Y19.21%
EPS Next 3Y18.63%
5. MSF.DE Dividend Analysis
5.1 Amount
- MSF has a yearly dividend return of 0.87%, which is pretty low.
- MSF's Dividend Yield is a higher than the industry average which is at 0.84.
- With a Dividend Yield of 0.87, MSF pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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 Years7
Div Non Decr Years7
5.3 Sustainability
- 21.19% 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.
DP21.19%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
MSF.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:MSF (4/22/2026, 1:27:18 PM)
363.85
+2.25 (+0.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
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 (41.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend2.75
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)-0.04%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.84 | ||
| Fwd PE | 22.09 | ||
| P/S | 10.41 | ||
| P/FCF | 41.07 | ||
| P/OCF | 19.81 | ||
| P/B | 8.13 | ||
| P/tB | 12.67 | ||
| EV/EBITDA | 17.27 |
EPS(TTM)13.07
EY3.59%
EPS(NY)16.47
Fwd EY4.53%
FCF(TTM)8.86
FCFY2.43%
OCF(TTM)18.37
OCFY5.05%
SpS34.96
BVpS44.73
TBVpS28.72
PEG (NY)1.16
PEG (5Y)1.48
Graham Number114.696 (-68.48%)
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 | 8.76 |
F-Score6
WACC10.48%
ROIC/WACC2.09
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 5Y16.18%
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 5 / 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%.