MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - FRA:MSF - US5949181045 - Common Stock
437.65 EUR
-0.15 (-0.03%)
MSF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 107 industry peers in the Software industry. MSF gets an excellent profitability rating and is at the same time showing great financial health properties. MSF is quite expensive at the moment. It does show 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.
In the past 5 years MSF always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.49%, MSF belongs to the top of the industry, outperforming 90.99% of the companies in the same industry.
MSF has a better Return On Equity (28.90%) than 86.49% of its industry peers.
With an excellent Return On Invested Capital value of 22.25%, MSF belongs to the best of the industry, outperforming 92.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MSF is significantly above the industry average of 13.52%.
| 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
Looking at the Profit Margin, with a value of 35.71%, MSF belongs to the top of the industry, outperforming 92.79% of the companies in the same industry.
In the last couple of years the Profit Margin of MSF has grown nicely.
MSF has a better Operating Margin (46.27%) than 96.40% of its industry peers.
MSF's Operating Margin has improved in the last couple of years.
MSF has a Gross Margin (68.76%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MSF 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
An Altman-Z score of 10.15 indicates that MSF is not in any danger for bankruptcy at the moment.
The Altman-Z score of MSF (10.15) is better than 90.99% of its industry peers.
The Debt to FCF ratio of MSF is 1.25, which is an excellent value as it means it would take MSF, only 1.25 years of fcf income to pay off 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 76.58% 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.
Looking at the Debt to Equity ratio, with a value of 0.24, MSF is in line with its industry, outperforming 55.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 10.15 |
ROIC/WACC2.05
WACC10.88%
2.3 Liquidity
MSF has a Current Ratio of 1.40. 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 1.40, MSF perfoms like the industry average, outperforming 48.65% of the companies in the same 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.
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
MSF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.39%, 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.
The Revenue has grown by 15.59% in the past year. This is quite good.
Measured over the past years, MSF shows a quite strong growth in Revenue. The Revenue has been growing by 14.52% on average per year.
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 14.31% yearly.
EPS Next Y16.96%
EPS Next 2Y17.68%
EPS Next 3Y18.5%
EPS Next 5Y18.83%
Revenue Next Year16.4%
Revenue Next 2Y15.53%
Revenue Next 3Y15.9%
Revenue Next 5Y14.31%
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
The Price/Earnings ratio is 35.24, which means the current valuation is very expensive for MSF.
The rest of the industry has a similar Price/Earnings ratio as MSF.
The average S&P500 Price/Earnings ratio is at 25.89. MSF is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 26.99, which means the current valuation is very expensive for MSF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 61.26% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. MSF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.24 | ||
| Fwd PE | 26.99 |
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.
MSF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.57 | ||
| EV/EBITDA | 21.12 |
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 18.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.08
PEG (5Y)1.87
EPS Next 2Y17.68%
EPS Next 3Y18.5%
5. Dividend
5.1 Amount
MSF has a yearly dividend return of 0.72%, which is pretty low.
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 2.44, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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.
The dividend of MSF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.52%
EPS Next 2Y17.68%
EPS Next 3Y18.5%
FRA:MSF (11/14/2025, 7:00:00 PM)
437.65
-0.15 (-0.03%)
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 Cap3.25T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86.29
Price Target537.05 (22.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend2.78
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)2.32%
PT rev (3m)3.07%
EPS NQ rev (1m)4.35%
EPS NQ rev (3m)4.45%
EPS NY rev (1m)0.92%
EPS NY rev (3m)3.64%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.24 | ||
| Fwd PE | 26.99 | ||
| P/S | 12.9 | ||
| P/FCF | 48.57 | ||
| P/OCF | 25.77 | ||
| P/B | 10.44 | ||
| P/tB | 17.04 | ||
| EV/EBITDA | 21.12 |
EPS(TTM)12.42
EY2.84%
EPS(NY)16.22
Fwd EY3.71%
FCF(TTM)9.01
FCFY2.06%
OCF(TTM)16.98
OCFY3.88%
SpS33.93
BVpS41.93
TBVpS25.68
PEG (NY)2.08
PEG (5Y)1.87
Graham Number108.25
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 | 10.15 |
F-Score6
WACC10.88%
ROIC/WACC2.05
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 3Y18.5%
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 3Y15.9%
Revenue Next 5Y14.31%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year51.87%
EBIT Next 3Y28.86%
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 35.24 and the Price/Book (PB) ratio is 10.44.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.