MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MSF - US5949181045 - Common Stock
422.45 EUR
+1.55 (+0.37%)
Overall MSF gets a fundamental rating of 7 out of 10. We evaluated MSF against 113 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
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.
MSF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.49%, MSF belongs to the best of the industry, outperforming 91.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.90%, MSF belongs to the top of the industry, outperforming 86.73% of the companies in the same industry.
MSF's Return On Invested Capital of 22.25% is amongst the best of the industry. MSF outperforms 92.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MSF is significantly above the industry average of 13.33%.
| 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
MSF's Profit Margin of 35.71% is amongst the best of the industry. MSF outperforms 92.92% of its industry peers.
MSF's Profit Margin has improved in the last couple of years.
The Operating Margin of MSF (46.27%) is better than 96.46% of its industry peers.
MSF's Operating Margin has improved in the last couple of years.
MSF has a Gross Margin of 68.76%. This is comparable to the rest of the industry: MSF outperforms 42.48% of its industry peers.
MSF's Gross Margin has been stable in the last couple of years.
| 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
MSF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, MSF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.83 indicates that MSF is not in any danger for bankruptcy at the moment.
The Altman-Z score of MSF (9.83) is better than 88.50% of its industry peers.
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.
MSF has a Debt to FCF ratio of 1.25. This is in the better half of the industry: MSF outperforms 74.34% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that MSF is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, MSF is in line with its industry, outperforming 55.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.83 |
ROIC/WACC2.06
WACC10.82%
2.3 Liquidity
A Current Ratio of 1.40 indicates that MSF should not have too much problems paying its short term obligations.
MSF has a Current ratio (1.40) which is in line with its industry peers.
MSF has a Quick 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 Quick ratio (1.39) which is in line with its industry peers.
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
MSF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.39%, which is quite good.
MSF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.86% yearly.
The Revenue has grown by 15.59% in the past year. This is quite good.
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
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.
The Revenue is expected to grow by 15.04% on average over the next years. This is quite good.
EPS Next Y22.86%
EPS Next 2Y18.41%
EPS Next 3Y18.25%
EPS Next 5Y18.83%
Revenue Next Year17.05%
Revenue Next 2Y15.88%
Revenue Next 3Y16%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.01, the valuation of MSF can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 63.72% of the companies listed in the same industry.
MSF is valuated rather expensively when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.75, which means the current valuation is very expensive for MSF.
Based on the Price/Forward Earnings ratio, MSF is valued a bit cheaper than 64.60% of the companies in the same industry.
MSF is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.01 | ||
| Fwd PE | 25.75 |
4.2 Price Multiples
MSF's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 46.91 | ||
| EV/EBITDA | 20.3 |
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 18.25% in the coming years.
PEG (NY)1.49
PEG (5Y)1.8
EPS Next 2Y18.41%
EPS Next 3Y18.25%
5. Dividend
5.1 Amount
MSF has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 2.24, MSF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, 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
23.52% 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.
DP23.52%
EPS Next 2Y18.41%
EPS Next 3Y18.25%
FRA:MSF (12/9/2025, 12:29:48 PM)
422.45
+1.55 (+0.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners75.51%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3.14T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86
Price Target541.71 (28.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend2.78
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)1.08%
PT rev (3m)2.31%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)5.04%
EPS NY rev (3m)5.96%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.01 | ||
| Fwd PE | 25.75 | ||
| P/S | 12.46 | ||
| P/FCF | 46.91 | ||
| P/OCF | 24.89 | ||
| P/B | 10.08 | ||
| P/tB | 16.46 | ||
| EV/EBITDA | 20.3 |
EPS(TTM)12.42
EY2.94%
EPS(NY)16.41
Fwd EY3.88%
FCF(TTM)9.01
FCFY2.13%
OCF(TTM)16.97
OCFY4.02%
SpS33.92
BVpS41.91
TBVpS25.67
PEG (NY)1.49
PEG (5Y)1.8
Graham Number108.23
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 | 9.83 |
F-Score6
WACC10.82%
ROIC/WACC2.06
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 Y22.86%
EPS Next 2Y18.41%
EPS Next 3Y18.25%
EPS Next 5Y18.83%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year17.05%
Revenue Next 2Y15.88%
Revenue Next 3Y16%
Revenue Next 5Y15.04%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year58.69%
EBIT Next 3Y29.61%
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 34.01 and the Price/Book (PB) ratio is 10.08.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.