MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - FRA:MSF - US5949181045 - Common Stock
423.7 EUR
-1.05 (-0.25%)
We assign a fundamental rating of 7 out of 10 to MSF. MSF was compared to 107 industry peers in the Software industry. MSF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
In the past year MSF was profitable.
In the past year MSF had a positive cash flow from operations.
In the past 5 years MSF has always been profitable.
Each year in the past 5 years MSF had a positive operating cash flow.
1.2 Ratios
MSF has a Return On Assets of 16.49%. This is amongst the best in the industry. MSF outperforms 88.78% of its industry peers.
MSF has a Return On Equity of 28.90%. This is amongst the best in the industry. MSF outperforms 85.05% of its industry peers.
MSF has a better Return On Invested Capital (22.25%) than 90.65% 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 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
The Profit Margin of MSF (35.71%) is better than 90.65% 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 94.39% of the companies in the same industry.
MSF's Operating Margin has improved in the last couple of years.
The Gross Margin of MSF (68.76%) 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
Compared to 1 year ago, MSF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.86 indicates that MSF is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.86, MSF belongs to the top of the industry, outperforming 90.65% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.25, MSF is in the better half of the industry, outperforming 75.70% of the companies in the same industry.
MSF has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
MSF has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: MSF outperforms 55.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.86 |
ROIC/WACC2.03
WACC10.97%
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.
MSF has a Current ratio (1.40) which is comparable to the rest of the industry.
A Quick Ratio of 1.39 indicates that MSF should not have too much problems paying its short term obligations.
MSF has a Quick ratio of 1.39. This is comparable to the rest of the industry: MSF outperforms 54.21% 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 | 1.4 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.39% over the past year.
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
Based on estimates for the next years, MSF will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.83% on average per year.
Based on estimates for the next years, MSF will show a quite strong growth in Revenue. The Revenue will grow by 14.31% on average per year.
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
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.
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 33.95 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 61.68% of the companies listed in the same industry.
MSF is valuated rather expensively when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.00, which means the current valuation is very expensive for MSF.
MSF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MSF is cheaper than 61.68% of the companies in the same industry.
MSF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.95 | ||
| Fwd PE | 26 |
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 | 46.79 | ||
| EV/EBITDA | 20.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSF does not grow enough to justify the current Price/Earnings ratio.
MSF has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MSF's earnings are expected to grow with 18.50% in the coming years.
PEG (NY)2
PEG (5Y)1.8
EPS Next 2Y17.68%
EPS Next 3Y18.5%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, 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 2.44, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
23.52% 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.
DP23.52%
EPS Next 2Y17.68%
EPS Next 3Y18.5%
FRA:MSF (11/19/2025, 7:00:00 PM)
423.7
-1.05 (-0.25%)
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 Cap3.15T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86.29
Price Target537.05 (26.75%)
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 | 33.95 | ||
| Fwd PE | 26 | ||
| P/S | 12.42 | ||
| P/FCF | 46.79 | ||
| P/OCF | 24.82 | ||
| P/B | 10.05 | ||
| P/tB | 16.42 | ||
| EV/EBITDA | 20.38 |
EPS(TTM)12.48
EY2.95%
EPS(NY)16.3
Fwd EY3.85%
FCF(TTM)9.06
FCFY2.14%
OCF(TTM)17.07
OCFY4.03%
SpS34.1
BVpS42.14
TBVpS25.81
PEG (NY)2
PEG (5Y)1.8
Graham Number108.79
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 | 9.86 |
F-Score6
WACC10.97%
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)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 33.95 and the Price/Book (PB) ratio is 10.05.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.