MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis

FRA:MSF • US5949181045

342.7 EUR
+2.9 (+0.85%)
Last: Mar 3, 2026, 04:58 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to MSF. MSF was compared to 116 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 priced too expensively while it is growing strongly. Keep and eye on this one! This makes MSF very considerable for growth and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • MSF had positive earnings in the past year.
  • 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.
MSF.DE Yearly Net Income VS EBIT VS OCF VS FCFMSF.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

1.2 Ratios

  • MSF has a Return On Assets of 17.93%. This is amongst the best in the industry. MSF outperforms 90.52% of its industry peers.
  • With an excellent Return On Equity value of 30.51%, MSF belongs to the best of the industry, outperforming 87.93% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 21.86%, MSF belongs to the top of the industry, outperforming 94.83% 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 12.58%.
Industry RankSector 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%
MSF.DE Yearly ROA, ROE, ROICMSF.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • MSF's Profit Margin of 39.04% is amongst the best of the industry. MSF outperforms 95.69% of its industry peers.
  • MSF's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 46.67%, MSF belongs to the best of the industry, outperforming 97.41% of the companies in the same industry.
  • In the last couple of years the Operating Margin of MSF has grown nicely.
  • The Gross Margin of MSF (68.59%) is comparable to the rest of the industry.
  • MSF's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
MSF.DE Yearly Profit, Operating, Gross MarginsMSF.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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.
MSF.DE Yearly Shares OutstandingMSF.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
MSF.DE Yearly Total Debt VS Total AssetsMSF.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B

2.2 Solvency

  • MSF has an Altman-Z score of 8.30. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 8.30, MSF belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
  • The Debt to FCF ratio of MSF is 1.30, which is an excellent value as it means it would take MSF, only 1.30 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of MSF (1.30) is better than 67.24% of its industry peers.
  • A Debt/Equity ratio of 0.23 indicates that MSF is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.23, MSF is in line with its industry, outperforming 53.45% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Altman-Z 8.3
ROIC/WACC2.03
WACC10.75%
MSF.DE Yearly LT Debt VS Equity VS FCFMSF.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B

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.
  • Looking at the Current ratio, with a value of 1.39, MSF is in line with its industry, outperforming 47.41% of the companies in the same industry.
  • A Quick Ratio of 1.38 indicates that MSF should not have too much problems paying its short term obligations.
  • MSF has a Quick ratio (1.38) 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 RankSector Rank
Current Ratio 1.39
Quick Ratio 1.38
MSF.DE Yearly Current Assets VS Current LiabilitesMSF.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

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.
  • MSF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.86% yearly.
  • Looking at the last year, MSF shows a quite strong growth in Revenue. The Revenue has grown by 16.67% in the last year.
  • 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

  • MSF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.94% yearly.
  • 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 Y24.51%
EPS Next 2Y19.37%
EPS Next 3Y18.79%
EPS Next 5Y18.94%
Revenue Next Year17.53%
Revenue Next 2Y16.53%
Revenue Next 3Y16.49%
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.
  • 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.
MSF.DE Yearly Revenue VS EstimatesMSF.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 200B 400B 600B
MSF.DE Yearly EPS VS EstimatesMSF.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 26.06, MSF can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, MSF is valued a bit cheaper than 68.97% of the companies in the same industry.
  • MSF's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
  • A Price/Forward Earnings ratio of 20.63 indicates a rather expensive valuation of MSF.
  • Based on the Price/Forward Earnings ratio, MSF is valued a bit cheaper than 64.66% of the companies in the same industry.
  • MSF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.11, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.06
Fwd PE 20.63
MSF.DE Price Earnings VS Forward Price EarningsMSF.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MSF is valued a bit cheaper than the industry average as 60.34% of the companies are valued more expensively.
  • 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 RankSector Rank
P/FCF 38.45
EV/EBITDA 16.11
MSF.DE Per share dataMSF.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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 18.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)1.38
EPS Next 2Y19.37%
EPS Next 3Y18.79%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • MSF has a yearly dividend return of 0.91%, which is pretty low.
  • MSF's Dividend Yield is a higher than the industry average which is at 0.72.
  • Compared to an average S&P500 Dividend Yield of 1.82, MSF's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.91%

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
MSF.DE Yearly Dividends per shareMSF.DE Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 21.19% 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.
DP21.19%
EPS Next 2Y19.37%
EPS Next 3Y18.79%
MSF.DE Yearly Income VS Free CF VS DividendMSF.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B
MSF.DE Dividend Payout.MSF.DE Dividend Payout, showing the Payout Ratio.MSF.DE Dividend Payout.PayoutRetained Earnings

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MICROSOFT CORP

FRA:MSF (3/3/2026, 4:58:09 PM)

342.7

+2.9 (+0.85%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners75.56%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.54T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts86.36
Price Target518.8 (51.39%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly Dividend2.74
Dividend Growth(5Y)10.24%
DP21.19%
Div Incr Years6
Div Non Decr Years6
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)1.54%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)0.13%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)-4.63%
PT rev (3m)-4.72%
EPS NQ rev (1m)1.31%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)1.4%
EPS NY rev (3m)6.45%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.98%
Valuation
Industry RankSector Rank
PE 26.06
Fwd PE 20.63
P/S 9.75
P/FCF 38.45
P/OCF 18.55
P/B 7.62
P/tB 11.86
EV/EBITDA 16.11
EPS(TTM)13.15
EY3.84%
EPS(NY)16.61
Fwd EY4.85%
FCF(TTM)8.91
FCFY2.6%
OCF(TTM)18.48
OCFY5.39%
SpS35.16
BVpS45
TBVpS28.89
PEG (NY)1.06
PEG (5Y)1.38
Graham Number115.39
Profitability
Industry RankSector 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 RankSector 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 8.3
F-Score6
WACC10.75%
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)23.83%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%28.17%
EPS Next Y24.51%
EPS Next 2Y19.37%
EPS Next 3Y18.79%
EPS Next 5Y18.94%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.53%
Revenue Next 2Y16.53%
Revenue Next 3Y16.49%
Revenue Next 5Y16.18%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year55.57%
EBIT Next 3Y28.92%
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 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.


Can you provide the profitability details for MICROSOFT CORP?

MICROSOFT CORP (MSF.DE) has a profitability rating of 8 / 10.


What is the valuation of MICROSOFT CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for MICROSOFT CORP (MSF.DE) is 26.06 and the Price/Book (PB) ratio is 7.62.


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%.