MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:MSF • US5949181045

337.05 EUR
-5.85 (-1.71%)
Last: Feb 6, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

7

Overall MSF gets a fundamental rating of 7 out of 10. We evaluated MSF against 122 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 is growing strongly while it is still valued neutral. This is a good combination! These ratings would make MSF suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year MSF was profitable.
  • MSF had a positive operating cash flow in the past year.
  • Each year in the past 5 years MSF has been profitable.
  • In the past 5 years MSF always reported a positive cash flow from operatings.
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

  • The Return On Assets of MSF (17.93%) is better than 87.93% of its industry peers.
  • MSF has a better Return On Equity (30.51%) than 85.34% of its industry peers.
  • The Return On Invested Capital of MSF (21.86%) is better than 93.10% of its industry peers.
  • MSF had an Average Return On Invested Capital over the past 3 years of 22.94%. This is significantly above the industry average of 13.45%.
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 has a better Profit Margin (39.04%) than 93.10% of its industry peers.
  • In the last couple of years the Profit Margin of MSF has grown nicely.
  • Looking at the Operating Margin, with a value of 46.67%, MSF belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
  • In the last couple of years the Operating Margin of MSF has grown nicely.
  • MSF has a Gross Margin of 68.59%. 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 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.
  • The number of shares outstanding for MSF remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for MSF has been reduced compared to 5 years ago.
  • MSF has a better debt/assets ratio than last year.
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 8.31. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 8.31, MSF belongs to the best of the industry, outperforming 87.93% 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.
  • With a decent Debt to FCF ratio value of 1.30, MSF is doing good in the industry, outperforming 68.10% of the companies in the same industry.
  • A Debt/Equity ratio of 0.23 indicates that MSF is not too dependend on debt financing.
  • MSF's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. MSF outperforms 55.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Altman-Z 8.31
ROIC/WACC2.01
WACC10.89%
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.
  • MSF has a Current ratio (1.39) which is in line with its industry peers.
  • MSF has a Quick Ratio of 1.38. 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 Quick ratio of 1.38 is in line compared to the rest of the industry. MSF outperforms 48.28% 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 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

  • The Earnings Per Share has grown by an impressive 23.83% 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 16.67% in the past year. This is quite good.
  • MSF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.52% yearly.
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.
  • 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 Y24.51%
EPS Next 2Y19.37%
EPS Next 3Y18.79%
EPS Next 5Y18.83%
Revenue Next Year17.53%
Revenue Next 2Y16.55%
Revenue Next 3Y16.52%
Revenue Next 5Y15.04%

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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

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5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 25.85, MSF can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 67.24% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of MSF to the average of the S&P500 Index (27.93), we can say MSF is valued inline with the index average.
  • A Price/Forward Earnings ratio of 20.45 indicates a rather expensive valuation of MSF.
  • Based on the Price/Forward Earnings ratio, MSF is valued a bit cheaper than the industry average as 67.24% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 27.77. MSF is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 25.85
Fwd PE 20.45
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 60.34% of the companies listed in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as MSF.
Industry RankSector Rank
P/FCF 38.17
EV/EBITDA 16.13
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.
  • 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 18.79% in the coming years.
PEG (NY)1.05
PEG (5Y)1.37
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 0.92%, which is pretty low.
  • In the last 3 months the price of MSF has falen by -21.11%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • MSF's Dividend Yield is a higher than the industry average which is at 0.67.
  • With a Dividend Yield of 0.92, MSF pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.92%

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
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

  • MSF pays out 21.19% of its income as dividend. This is a sustainable payout ratio.
  • MSF's earnings are growing more than its dividend. This makes the dividend growth 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 (2/6/2026, 7:00:00 PM)

337.05

-5.85 (-1.71%)

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 Cap2.51T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.97
Price Target522.16 (54.92%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.92%
Yearly Dividend2.75
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)6.37%
Min EPS beat(2)2.28%
Max EPS beat(2)10.46%
EPS beat(4)4
Avg EPS beat(4)6.07%
Min EPS beat(4)2.28%
Max EPS beat(4)10.46%
EPS beat(8)7
Avg EPS beat(8)3.92%
EPS beat(12)11
Avg EPS beat(12)4.68%
EPS beat(16)12
Avg EPS beat(16)3.14%
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)-3.31%
PT rev (3m)-2.57%
EPS NQ rev (1m)1.24%
EPS NQ rev (3m)1.19%
EPS NY rev (1m)1.52%
EPS NY rev (3m)6.45%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.97%
Valuation
Industry RankSector Rank
PE 25.85
Fwd PE 20.45
P/S 9.67
P/FCF 38.17
P/OCF 18.41
P/B 7.56
P/tB 11.77
EV/EBITDA 16.13
EPS(TTM)13.04
EY3.87%
EPS(NY)16.48
Fwd EY4.89%
FCF(TTM)8.83
FCFY2.62%
OCF(TTM)18.31
OCFY5.43%
SpS34.85
BVpS44.59
TBVpS28.63
PEG (NY)1.05
PEG (5Y)1.37
Graham Number114.38
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 8.31
F-Score6
WACC10.89%
ROIC/WACC2.01
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 5Y18.83%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.53%
Revenue Next 2Y16.55%
Revenue Next 3Y16.52%
Revenue Next 5Y15.04%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year57.72%
EBIT Next 3Y28.9%
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 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 25.85 and the Price/Book (PB) ratio is 7.56.


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%.