MICROSOFT CORP (MSF.DE) Fundamental Analysis & Valuation
FRA:MSF • US5949181045
Current stock price
317.9 EUR
-3.3 (-1.03%)
Last:
This MSF.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. MSF.DE Profitability Analysis
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.
- Each year in the past 5 years MSF had a positive operating cash flow.
1.2 Ratios
- MSF's Return On Assets of 17.93% is amongst the best of the industry. MSF outperforms 90.00% of its industry peers.
- The Return On Equity of MSF (30.51%) is better than 85.45% of its industry peers.
- MSF's Return On Invested Capital of 21.86% is amongst the best of the industry. MSF outperforms 93.64% 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 13.72%.
| Industry Rank | Sector 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%
1.3 Margins
- MSF has a better Profit Margin (39.04%) than 97.27% of its industry peers.
- In the last couple of years the Profit Margin of MSF has grown nicely.
- MSF's Operating Margin of 46.67% is amongst the best of the industry. MSF outperforms 97.27% of its industry peers.
- MSF's Operating Margin has improved in the last couple of years.
- MSF has a Gross Margin of 68.59%. This is comparable to the rest of the industry: MSF outperforms 43.64% of its industry peers.
- MSF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. MSF.DE Health Analysis
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.
- 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.
- MSF has a better debt/assets ratio than last year.
2.2 Solvency
- MSF has an Altman-Z score of 7.86. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
- MSF has a Altman-Z score of 7.86. This is amongst the best in the industry. MSF outperforms 88.18% of its industry peers.
- 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.
- MSF's Debt to FCF ratio of 1.30 is fine compared to the rest of the industry. MSF outperforms 67.27% of its industry peers.
- MSF has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
- MSF has a Debt to Equity ratio of 0.23. This is comparable to the rest of the industry: MSF outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 7.86 |
ROIC/WACC2.02
WACC10.82%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that MSF should not have too much problems paying its short term obligations.
- MSF's Current ratio of 1.39 is in line compared to the rest of the industry. MSF outperforms 50.91% of 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 53.64% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.38 |
3. MSF.DE Growth Analysis
3.1 Past
- MSF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.83%, which is quite impressive.
- 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 16.67%.
- The Revenue has been growing by 14.52% on average over the past years. This is quite good.
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 18.94% 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 16.18% on average per year.
EPS Next Y24.05%
EPS Next 2Y19.2%
EPS Next 3Y18.61%
EPS Next 5Y18.94%
Revenue Next Year17.5%
Revenue Next 2Y16.52%
Revenue Next 3Y16.5%
Revenue Next 5Y16.18%
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.
- 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.
4. MSF.DE Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 23.83 indicates a rather expensive valuation of MSF.
- Based on the Price/Earnings ratio, MSF is valued a bit cheaper than 66.36% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.21, MSF is valued at the same level.
- MSF is valuated rather expensively with a Price/Forward Earnings ratio of 18.90.
- 64.55% of the companies in the same industry are more expensive than MSF, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of MSF to the average of the S&P500 Index (23.13), we can say MSF is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.83 | ||
| Fwd PE | 18.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MSF is valued a bit cheaper than 60.91% of the companies in the same industry.
- 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 | 35.14 | ||
| EV/EBITDA | 14.98 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 18.61% in the coming years.
PEG (NY)0.99
PEG (5Y)1.26
EPS Next 2Y19.2%
EPS Next 3Y18.61%
5. MSF.DE Dividend Analysis
5.1 Amount
- MSF has a Yearly Dividend Yield of 1.02%.
- In the last 3 months the price of MSF has falen by -20.30%. 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 0.86.
- Compared to an average S&P500 Dividend Yield of 1.89, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 Years7
Div Non Decr Years7
5.3 Sustainability
- MSF pays out 21.19% 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.
DP21.19%
EPS Next 2Y19.2%
EPS Next 3Y18.61%
MSF.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:MSF (4/7/2026, 5:28:41 PM)
317.9
-3.3 (-1.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28 2026-01-28/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners75.67%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.36T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.23
Price Target518.8 (63.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend2.81
Dividend Growth(5Y)10.24%
DP21.19%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.54%
Min EPS beat(2)2.62%
Max EPS beat(2)10.46%
EPS beat(4)4
Avg EPS beat(4)6.15%
Min EPS beat(4)2.62%
Max EPS beat(4)10.46%
EPS beat(8)7
Avg EPS beat(8)3.96%
EPS beat(12)11
Avg EPS beat(12)4.71%
EPS beat(16)12
Avg EPS beat(16)3.16%
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%
PT rev (3m)-3.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)0%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.83 | ||
| Fwd PE | 18.9 | ||
| P/S | 8.91 | ||
| P/FCF | 35.14 | ||
| P/OCF | 16.95 | ||
| P/B | 6.96 | ||
| P/tB | 10.84 | ||
| EV/EBITDA | 14.98 |
EPS(TTM)13.34
EY4.2%
EPS(NY)16.82
Fwd EY5.29%
FCF(TTM)9.05
FCFY2.85%
OCF(TTM)18.76
OCFY5.9%
SpS35.69
BVpS45.67
TBVpS29.32
PEG (NY)0.99
PEG (5Y)1.26
Graham Number117.09
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 7.86 |
F-Score6
WACC10.82%
ROIC/WACC2.02
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 Y24.05%
EPS Next 2Y19.2%
EPS Next 3Y18.61%
EPS Next 5Y18.94%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.5%
Revenue Next 2Y16.52%
Revenue Next 3Y16.5%
Revenue Next 5Y16.18%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year55.61%
EBIT Next 3Y28.93%
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 Fundamental Analysis 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.
What is the profitability of MSF stock?
MICROSOFT CORP (MSF.DE) has a profitability rating of 8 / 10.
What is the financial health of MICROSOFT CORP (MSF.DE) stock?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.
Can you provide the dividend sustainability for MSF stock?
The dividend rating of MICROSOFT CORP (MSF.DE) is 6 / 10 and the dividend payout ratio is 21.19%.