MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MSF - US5949181045 - Common Stock
420.7 EUR
+0.8 (+0.19%)
MSF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 114 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 valued too expensively and it also shows a decent growth rate. This makes MSF very considerable 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.
Each year in the past 5 years MSF has been profitable.
Each year in the past 5 years MSF had a positive operating cash flow.
1.2 Ratios
MSF's Return On Assets of 16.49% is amongst the best of the industry. MSF outperforms 90.35% of its industry peers.
Looking at the Return On Equity, with a value of 28.90%, MSF belongs to the top of the industry, outperforming 87.72% of the companies in the same industry.
MSF has a better Return On Invested Capital (22.25%) than 92.11% 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 13.10%.
| 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
With an excellent Profit Margin value of 35.71%, MSF belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
In the last couple of years the Profit Margin of MSF has grown nicely.
With an excellent Operating Margin value of 46.27%, MSF belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
In the last couple of years the Operating Margin of MSF has grown nicely.
MSF's Gross Margin of 68.76% is in line compared to the rest of the industry. MSF outperforms 45.61% of its industry peers.
In the last couple of years the Gross Margin of MSF has remained more or less at the same level.
| 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.
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.
The debt/assets ratio for MSF has been reduced compared to a year ago.
2.2 Solvency
MSF has an Altman-Z score of 9.76. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.76, MSF belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
The Debt to FCF ratio of MSF is 1.25, which is an excellent value as it means it would take MSF, only 1.25 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.25, MSF is doing good in the industry, outperforming 76.32% 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's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. MSF outperforms 55.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.76 |
ROIC/WACC2.05
WACC10.88%
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.
Looking at the Quick ratio, with a value of 1.39, MSF is in line with its industry, outperforming 55.26% of the companies in the same industry.
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
The Earnings Per Share has grown by an nice 19.39% 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.
MSF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.59%.
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 14.31% yearly.
EPS Next Y16.96%
EPS Next 2Y17.68%
EPS Next 3Y18.5%
EPS Next 5Y18.83%
Revenue Next Year16.4%
Revenue Next 2Y15.53%
Revenue Next 3Y15.9%
Revenue Next 5Y14.31%
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
A Price/Earnings ratio of 33.66 indicates a quite expensive valuation of MSF.
Based on the Price/Earnings ratio, MSF is valued a bit cheaper than the industry average as 62.28% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MSF to the average of the S&P500 Index (26.15), we can say MSF is valued slightly more expensively.
With a Price/Forward Earnings ratio of 25.78, MSF can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, MSF is valued a bit cheaper than the industry average as 61.40% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, MSF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.66 | ||
| Fwd PE | 25.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MSF.
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 | 46.4 | ||
| EV/EBITDA | 20.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSF does not grow enough to justify the current Price/Earnings ratio.
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 18.50% in the coming years.
PEG (NY)1.98
PEG (5Y)1.78
EPS Next 2Y17.68%
EPS Next 3Y18.5%
5. Dividend
5.1 Amount
MSF has a yearly dividend return of 0.76%, which is pretty low.
MSF's Dividend Yield is a higher than the industry average which is at 2.24.
Compared to an average S&P500 Dividend Yield of 2.41, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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 3Y18.5%
FRA:MSF (11/27/2025, 9:07:16 AM)
420.7
+0.8 (+0.19%)
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 Cap3.13T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86.29
Price Target544.48 (29.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend2.81
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)4.33%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)0.96%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.66 | ||
| Fwd PE | 25.78 | ||
| P/S | 12.32 | ||
| P/FCF | 46.4 | ||
| P/OCF | 24.62 | ||
| P/B | 9.97 | ||
| P/tB | 16.28 | ||
| EV/EBITDA | 20.12 |
EPS(TTM)12.5
EY2.97%
EPS(NY)16.32
Fwd EY3.88%
FCF(TTM)9.07
FCFY2.15%
OCF(TTM)17.09
OCFY4.06%
SpS34.14
BVpS42.19
TBVpS25.84
PEG (NY)1.98
PEG (5Y)1.78
Graham Number108.93
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 | 9.76 |
F-Score6
WACC10.88%
ROIC/WACC2.05
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 3Y18.5%
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 3Y15.9%
Revenue Next 5Y14.31%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year51.87%
EBIT Next 3Y28.86%
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 33.66 and the Price/Book (PB) ratio is 9.97.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.