MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:MSF • US5949181045

342.9 EUR
-9.65 (-2.74%)
Last: Feb 5, 2026, 07:00 PM
Fundamental Rating

7

Overall MSF gets a fundamental rating of 7 out of 10. We evaluated MSF against 115 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 is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, MSF could be worth investigating further 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.
  • MSF had positive earnings in each of the past 5 years.
  • 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

  • MSF's Return On Assets of 17.93% is amongst the best of the industry. MSF outperforms 90.43% of its industry peers.
  • Looking at the Return On Equity, with a value of 30.51%, MSF belongs to the top of the industry, outperforming 86.09% of the companies in the same industry.
  • The Return On Invested Capital of MSF (21.86%) is better than 93.91% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MSF is significantly above the industry average of 13.06%.
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

  • With an excellent Profit Margin value of 39.04%, MSF belongs to the best of the industry, outperforming 93.91% 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 46.67%. This is amongst the best in the industry. MSF outperforms 97.39% 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 comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of MSF has remained more or less at the same level.
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.
  • The debt/assets ratio for MSF has been reduced compared to a year ago.
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

  • An Altman-Z score of 8.62 indicates that MSF is not in any danger for bankruptcy at the moment.
  • MSF has a better Altman-Z score (8.62) than 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.
  • The Debt to FCF ratio of MSF (1.30) is better than 69.57% of its industry peers.
  • A Debt/Equity ratio of 0.23 indicates that MSF is not too dependend on debt financing.
  • MSF has a Debt to Equity ratio of 0.23. This is comparable to the rest of the industry: MSF outperforms 56.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Altman-Z 8.62
ROIC/WACC1.99
WACC11%
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 comparable to the rest of the industry.
  • 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 49.57% 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.
  • MSF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.86% yearly.
  • MSF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.67%.
  • 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

  • The Earnings Per Share is expected to grow by 18.83% on average over the next years. This is quite good.
  • 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

  • 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

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • MSF is valuated quite expensively with a Price/Earnings ratio of 26.36.
  • MSF's Price/Earnings ratio is a bit cheaper when compared to the industry. MSF is cheaper than 66.96% of the companies in the same industry.
  • MSF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 21.17, 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 66.09% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of MSF to the average of the S&P500 Index (27.20), we can say MSF is valued slightly cheaper.
Industry RankSector Rank
PE 26.36
Fwd PE 21.17
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 50

4.2 Price Multiples

  • MSF's Enterprise Value to EBITDA ratio is in line with the industry average.
  • MSF's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 38.91
EV/EBITDA 16.92
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 18.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)1.4
EPS Next 2Y18.47%
EPS Next 3Y18.31%

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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 0.84%, which is pretty low.
  • MSF's Dividend Yield is a higher than the industry average which is at 0.64.
  • 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 0.84%

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
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.
  • 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%
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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Find the best dividend stocksShow peers with best dividend

MICROSOFT CORP

FRA:MSF (2/5/2026, 7:00:00 PM)

342.9

-9.65 (-2.74%)

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 Cap2.55T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.97
Price Target543.97 (58.64%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.84%
Yearly Dividend2.72
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)0.73%
PT rev (3m)1.5%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)4.08%
EPS NY rev (1m)0.12%
EPS NY rev (3m)5.98%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.39%
Valuation
Industry RankSector Rank
PE 26.36
Fwd PE 21.17
P/S 9.86
P/FCF 38.91
P/OCF 18.77
P/B 7.71
P/tB 12
EV/EBITDA 16.92
EPS(TTM)13.01
EY3.79%
EPS(NY)16.2
Fwd EY4.72%
FCF(TTM)8.81
FCFY2.57%
OCF(TTM)18.27
OCFY5.33%
SpS34.77
BVpS44.49
TBVpS28.57
PEG (NY)1.16
PEG (5Y)1.4
Graham Number114.12
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 8.62
F-Score6
WACC11%
ROIC/WACC1.99
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 Y22.79%
EPS Next 2Y18.47%
EPS Next 3Y18.31%
EPS Next 5Y18.83%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.06%
Revenue Next 2Y15.95%
Revenue Next 3Y16.12%
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 26.36 and the Price/Book (PB) ratio is 7.71.


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%.