MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:MSF • US5949181045
363.1 EUR
+7.7 (+2.17%)
Last: Jan 30, 2026, 07:00 PM
Overall MSF gets a fundamental rating of 7 out of 10. We evaluated MSF against 115 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make MSF suitable for growth and quality investing!
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.
- MSF had positive earnings in each of the past 5 years.
- MSF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of MSF (17.93%) is better than 89.57% of its industry peers.
- The Return On Equity of MSF (30.51%) is better than 84.35% of its industry peers.
- With an excellent Return On Invested Capital value of 21.86%, MSF belongs to the best of the industry, outperforming 92.17% 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 13.48%.
| 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
- The Profit Margin of MSF (39.04%) is better than 93.91% of its industry peers.
- In the last couple of years the Profit Margin of MSF has grown nicely.
- MSF has a Operating Margin of 46.67%. This is amongst the best in the industry. MSF outperforms 96.52% of its industry peers.
- MSF's Operating Margin has improved in the last couple of years.
- MSF has a Gross Margin (68.59%) which is in line with its industry peers.
- 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. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MSF is creating value.
- Compared to 1 year ago, MSF has about the same amount of shares outstanding.
- Compared to 5 years ago, MSF has less shares outstanding
- Compared to 1 year ago, MSF has an improved debt to assets ratio.
2.2 Solvency
- MSF has an Altman-Z score of 8.88. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
- MSF has a Altman-Z score of 8.88. This is amongst the best in the industry. MSF outperforms 86.96% of its industry peers.
- 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.
- MSF has a Debt to FCF ratio of 1.30. This is in the better half of the industry: MSF outperforms 70.43% of its industry peers.
- MSF has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
- MSF has a Debt to Equity ratio (0.23) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 8.88 |
ROIC/WACC1.99
WACC10.96%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that MSF should not have too much problems paying its short term obligations.
- MSF has a Current ratio (1.39) which is comparable to the rest of the industry.
- A Quick Ratio of 1.38 indicates that MSF should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.38, MSF is in line with its industry, outperforming 48.70% of the companies in the same industry.
- 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. 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.
- 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.
- Looking at the last year, MSF shows a quite strong growth in Revenue. The Revenue has grown by 16.67% in the last year.
- 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)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 18.83% yearly.
- Based on estimates for the next years, MSF will show a quite strong growth in Revenue. The Revenue will grow by 15.04% on average per year.
EPS Next Y22.79%
EPS Next 2Y18.47%
EPS Next 3Y18.31%
EPS Next 5Y18.83%
Revenue Next Year17.06%
Revenue Next 2Y15.95%
Revenue Next 3Y16.12%
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.
- 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
- Based on the Price/Earnings ratio of 28.15, 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 65.22% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. MSF is around the same levels.
- MSF is valuated rather expensively with a Price/Forward Earnings ratio of 22.61.
- 67.83% of the companies in the same industry are more expensive than MSF, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. MSF is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.15 | ||
| Fwd PE | 22.61 |
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.
- 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 | 41.55 | ||
| EV/EBITDA | 17.58 |
4.3 Compensation for Growth
- MSF's 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.
- A more expensive valuation may be justified as MSF's earnings are expected to grow with 18.31% in the coming years.
PEG (NY)1.24
PEG (5Y)1.49
EPS Next 2Y18.47%
EPS Next 3Y18.31%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.84%, MSF is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.68, MSF pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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
- 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 2Y18.47%
EPS Next 3Y18.31%
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 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.
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 28.15 and the Price/Book (PB) ratio is 8.23.
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%.