MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MSF - US5949181045 - Common Stock
411 EUR
-11.5 (-2.72%)
MSF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 116 industry peers in the Software industry. Both the health and profitability get an excellent rating, making MSF a very profitable company, without any liquidiy or solvency issues. MSF has a correct valuation and a medium growth rate. These ratings could make MSF a good candidate 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.
In the past 5 years MSF always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MSF (16.49%) is better than 90.52% of its industry peers.
With an excellent Return On Equity value of 28.90%, MSF belongs to the best of the industry, outperforming 87.07% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 22.25%, MSF belongs to the top of the industry, outperforming 92.24% 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 13.28%.
| 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 92.24% of the companies in the same industry.
In the last couple of years the Profit Margin of MSF has grown nicely.
MSF has a Operating Margin of 46.27%. This is amongst the best in the industry. MSF outperforms 94.83% of its industry peers.
In the last couple of years the Operating Margin of MSF has grown nicely.
MSF has a Gross Margin of 68.76%. This is comparable to the rest of the industry: MSF outperforms 42.24% 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
MSF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MSF has about the same amout of shares outstanding than it did 1 year ago.
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
An Altman-Z score of 9.84 indicates that MSF is not in any danger for bankruptcy at the moment.
MSF has a Altman-Z score of 9.84. This is amongst the best in the industry. MSF outperforms 92.24% of its industry peers.
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.
MSF has a Debt to FCF ratio of 1.25. This is in the better half of the industry: MSF outperforms 74.14% of its industry peers.
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 55.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.84 |
ROIC/WACC2.07
WACC10.73%
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's Current ratio of 1.40 is in line compared to the rest of the industry. MSF outperforms 49.14% of its industry peers.
A Quick Ratio of 1.39 indicates that MSF should not have too much problems paying its short term obligations.
MSF's Quick ratio of 1.39 is in line compared to the rest of the industry. MSF outperforms 52.59% 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.
The Revenue has been growing by 14.52% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 15.04% on average over the next years. This is quite good.
EPS Next Y16.96%
EPS Next 2Y17.68%
EPS Next 3Y18.52%
EPS Next 5Y18.83%
Revenue Next Year16.4%
Revenue Next 2Y15.53%
Revenue Next 3Y15.94%
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
MSF is valuated quite expensively with a Price/Earnings ratio of 32.99.
Based on the Price/Earnings ratio, MSF is valued a bit cheaper than the industry average as 61.21% of the companies are valued more expensively.
MSF's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.37.
The Price/Forward Earnings ratio is 25.27, which means the current valuation is very expensive for MSF.
Based on the Price/Forward Earnings ratio, MSF is valued a bit cheaper than 61.21% of the companies in the same industry.
MSF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.99 | ||
| Fwd PE | 25.27 |
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 | 45.47 | ||
| EV/EBITDA | 20.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 18.52% in the coming years.
PEG (NY)1.94
PEG (5Y)1.75
EPS Next 2Y17.68%
EPS Next 3Y18.52%
5. Dividend
5.1 Amount
MSF has a yearly dividend return of 0.75%, which is pretty low.
MSF's Dividend Yield is a higher than the industry average which is at 2.22.
Compared to an average S&P500 Dividend Yield of 2.32, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
MSF pays out 23.52% of its income as dividend. This is a 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 3Y18.52%
FRA:MSF (12/3/2025, 7:00:00 PM)
411
-11.5 (-2.72%)
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 Cap3.05T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86.29
Price Target544.48 (32.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend2.8
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)3.74%
PT rev (3m)2.83%
EPS NQ rev (1m)4.34%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)0.96%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.99 | ||
| Fwd PE | 25.27 | ||
| P/S | 12.07 | ||
| P/FCF | 45.47 | ||
| P/OCF | 24.13 | ||
| P/B | 9.77 | ||
| P/tB | 15.96 | ||
| EV/EBITDA | 20.31 |
EPS(TTM)12.46
EY3.03%
EPS(NY)16.26
Fwd EY3.96%
FCF(TTM)9.04
FCFY2.2%
OCF(TTM)17.03
OCFY4.14%
SpS34.04
BVpS42.06
TBVpS25.76
PEG (NY)1.94
PEG (5Y)1.75
Graham Number108.59
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 | 9.84 |
F-Score6
WACC10.73%
ROIC/WACC2.07
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 3Y18.52%
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 3Y15.94%
Revenue Next 5Y15.04%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year51.87%
EBIT Next 3Y30.06%
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 32.99 and the Price/Book (PB) ratio is 9.77.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.