MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MSF - US5949181045 - Common Stock
397.15 EUR
+0.8 (+0.2%)
Overall MSF gets a fundamental rating of 7 out of 10. We evaluated MSF against 125 industry peers in the Software industry. MSF has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MSF has a correct valuation and a medium growth rate. This makes MSF very considerable 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.
- MSF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 16.49%, MSF belongs to the top of the industry, outperforming 89.60% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 28.90%, MSF belongs to the top of the industry, outperforming 84.80% of the companies in the same industry.
- The Return On Invested Capital of MSF (22.25%) is better than 92.80% 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 12.89%.
| 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 92.80% of the companies in the same industry.
- MSF's Profit Margin has improved in the last couple of years.
- MSF has a Operating Margin of 46.27%. This is amongst the best in the industry. MSF outperforms 96.80% of its industry peers.
- MSF's Operating Margin has improved in the last couple of years.
- MSF has a Gross Margin of 68.76%. This is comparable to the rest of the industry: MSF outperforms 41.60% of its industry peers.
- 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.
- Compared to 1 year ago, MSF has about the same amount of shares outstanding.
- The number of shares outstanding for MSF has been reduced compared to 5 years ago.
- The debt/assets ratio for MSF has been reduced compared to a year ago.
2.2 Solvency
- MSF has an Altman-Z score of 9.36. 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 9.36, MSF belongs to the top of the industry, outperforming 88.80% of the companies in the same industry.
- MSF has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of 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 71.20% of the companies in the same industry.
- A Debt/Equity ratio of 0.24 indicates that MSF is not too dependend on debt financing.
- MSF has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: MSF outperforms 52.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.36 |
ROIC/WACC2.03
WACC10.96%
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.
- The Current ratio of MSF (1.40) 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 50.40% of its industry peers.
- 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.
- The Earnings Per Share has been growing by 18.86% on average over the past years. This is quite good.
- 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.
- MSF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.04% yearly.
EPS Next Y22.64%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
EPS Next 5Y18.83%
Revenue Next Year17.06%
Revenue Next 2Y15.95%
Revenue Next 3Y16.09%
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.
- 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
- With a Price/Earnings ratio of 31.87, MSF can be considered very expensive at the moment.
- MSF's Price/Earnings ratio is a bit cheaper when compared to the industry. MSF is cheaper than 65.60% of the companies in the same industry.
- When comparing the Price/Earnings ratio of MSF to the average of the S&P500 Index (27.47), we can say MSF is valued inline with the index average.
- With a Price/Forward Earnings ratio of 24.13, MSF is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 65.60% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, MSF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.87 | ||
| Fwd PE | 24.13 |
4.2 Price Multiples
- 61.60% of the companies in the same industry are more expensive than MSF, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as MSF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.95 | ||
| EV/EBITDA | 19.07 |
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 18.24% in the coming years.
PEG (NY)1.41
PEG (5Y)1.69
EPS Next 2Y18.39%
EPS Next 3Y18.24%
5. Dividend
5.1 Amount
- MSF has a yearly dividend return of 0.80%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.60, MSF pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.80, MSF pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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.
- MSF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.52%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
FRA:MSF (1/16/2026, 7:00:00 PM)
397.15
+0.8 (+0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners75.56%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.95T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts85.97
Price Target543.97 (36.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend2.79
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)0.42%
PT rev (3m)3.64%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)4.37%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)5.82%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.87 | ||
| Fwd PE | 24.13 | ||
| P/S | 11.67 | ||
| P/FCF | 43.95 | ||
| P/OCF | 23.32 | ||
| P/B | 9.44 | ||
| P/tB | 15.42 | ||
| EV/EBITDA | 19.07 |
EPS(TTM)12.46
EY3.14%
EPS(NY)16.46
Fwd EY4.14%
FCF(TTM)9.04
FCFY2.28%
OCF(TTM)17.03
OCFY4.29%
SpS34.03
BVpS42.05
TBVpS25.75
PEG (NY)1.41
PEG (5Y)1.69
Graham Number108.58
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 | 9.36 |
F-Score6
WACC10.96%
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 Y22.64%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
EPS Next 5Y18.83%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year17.06%
Revenue Next 2Y15.95%
Revenue Next 3Y16.09%
Revenue Next 5Y15.04%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year58.37%
EBIT Next 3Y29.48%
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.
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 31.87 and the Price/Book (PB) ratio is 9.44.
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 23.52%.