MICROSOFT CORP (MSF.DE) Fundamental Analysis & Valuation
FRA:MSF • US5949181045
352.05 EUR
+0.9 (+0.26%)
Last: Mar 10, 2026, 10:56 AM
This MSF.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 7 out of 10 to MSF. MSF was compared to 121 industry peers in the Software industry. MSF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MSF is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes MSF very considerable for growth and quality investing!
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.
- MSF had positive earnings in each of the past 5 years.
- Each year in the past 5 years MSF had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 17.93%, MSF belongs to the top of the industry, outperforming 87.60% of the companies in the same industry.
- MSF has a better Return On Equity (30.51%) than 83.47% of its industry peers.
- The Return On Invested Capital of MSF (21.86%) is better than 92.56% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MSF is significantly above the industry average of 13.12%.
| 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 Profit Margin of 39.04%. This is amongst the best in the industry. MSF outperforms 95.04% of its industry peers.
- In the last couple of years the Profit Margin of MSF has grown nicely.
- MSF has a better Operating Margin (46.67%) than 97.52% of its industry peers.
- In the last couple of years the Operating Margin of MSF has grown nicely.
- MSF has a Gross Margin of 68.59%. This is in the lower half of the industry: MSF underperforms 60.33% 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
- 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.
- Compared to 5 years ago, MSF has less shares outstanding
- Compared to 1 year ago, MSF has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 8.44 indicates that MSF is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.44, MSF belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
- 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.
- With a decent Debt to FCF ratio value of 1.30, MSF is doing good in the industry, outperforming 65.29% 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 51.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 8.44 |
ROIC/WACC2.03
WACC10.79%
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.
- Looking at the Current ratio, with a value of 1.39, MSF is in line with its industry, outperforming 49.59% of the companies in the same 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 has a Quick ratio (1.38) which is in line with 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%.
- 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)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 18.94% yearly.
- MSF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.18% yearly.
EPS Next Y24.05%
EPS Next 2Y19.2%
EPS Next 3Y18.61%
EPS Next 5Y18.94%
Revenue Next Year17.52%
Revenue Next 2Y16.54%
Revenue Next 3Y16.54%
Revenue Next 5Y16.18%
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.
4. MSF.DE Valuation Analysis
4.1 Price/Earnings Ratio
- MSF is valuated quite expensively with a Price/Earnings ratio of 26.45.
- MSF's Price/Earnings ratio is a bit cheaper when compared to the industry. MSF is cheaper than 62.81% of the companies in the same industry.
- When comparing the Price/Earnings ratio of MSF to the average of the S&P500 Index (26.46), we can say MSF is valued inline with the index average.
- With a Price/Forward Earnings ratio of 20.99, MSF is valued on the expensive side.
- 61.98% of the companies in the same industry are more expensive than MSF, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.65, MSF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.45 | ||
| Fwd PE | 20.99 |
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.
- MSF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.02 | ||
| EV/EBITDA | 16.45 |
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 18.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)1.4
EPS Next 2Y19.2%
EPS Next 3Y18.61%
5. MSF.DE Dividend Analysis
5.1 Amount
- MSF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
MSF.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:MSF (3/10/2026, 10:56:41 AM)
352.05
+0.9 (+0.26%)
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 Cap2.61T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.45
Price Target518.8 (47.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend2.8
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)6.54%
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)-0.64%
PT rev (3m)-4.23%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.45 | ||
| Fwd PE | 20.99 | ||
| P/S | 9.89 | ||
| P/FCF | 39.02 | ||
| P/OCF | 18.82 | ||
| P/B | 7.73 | ||
| P/tB | 12.04 | ||
| EV/EBITDA | 16.45 |
EPS(TTM)13.31
EY3.78%
EPS(NY)16.77
Fwd EY4.76%
FCF(TTM)9.02
FCFY2.56%
OCF(TTM)18.71
OCFY5.31%
SpS35.6
BVpS45.55
TBVpS29.25
PEG (NY)1.1
PEG (5Y)1.4
Graham Number116.8
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 | 8.44 |
F-Score6
WACC10.79%
ROIC/WACC2.03
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 Year17.52%
Revenue Next 2Y16.54%
Revenue Next 3Y16.54%
Revenue Next 5Y16.18%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year55.57%
EBIT Next 3Y28.92%
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 26.45 and the Price/Book (PB) ratio is 7.73.
Can you provide the dividend sustainability for MSF stock?
The dividend rating of MICROSOFT CORP (MSF.DE) is 0 / 10 and the dividend payout ratio is 21.19%.