MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:MSF • US5949181045
349.95 EUR
-11.1 (-3.07%)
Last: Feb 3, 2026, 05:29 PM
Taking everything into account, MSF scores 7 out of 10 in our fundamental rating. MSF was compared to 115 industry peers in the Software industry. MSF gets an excellent profitability rating and is at the same time showing great financial health properties. 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!.
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.
- 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
- Looking at the Return On Assets, with a value of 17.93%, MSF belongs to the top of the industry, outperforming 90.43% of the companies in the same industry.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for MSF is significantly above the industry average of 13.06%.
| 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
- Looking at the Profit Margin, with a value of 39.04%, MSF belongs to the top of the industry, outperforming 93.91% of the companies in the same industry.
- MSF's Profit Margin has improved in the last couple of years.
- The Operating Margin of MSF (46.67%) is better than 97.39% of its industry peers.
- In the last couple of years the Operating Margin of MSF has grown nicely.
- The Gross Margin of MSF (68.59%) is comparable to the rest of the industry.
- 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. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MSF is creating value.
- MSF has about the same amout of shares outstanding than it did 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
- MSF has an Altman-Z score of 8.79. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.79, MSF belongs to the top of the industry, outperforming 86.09% 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.
- The Debt to FCF ratio of MSF (1.30) is better than 69.57% 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 56.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 8.79 |
ROIC/WACC1.99
WACC11.01%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that MSF should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.39, MSF is in line with its industry, outperforming 47.83% of the companies in the same industry.
- A Quick Ratio of 1.38 indicates that MSF should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.38, MSF perfoms like the industry average, outperforming 49.57% 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 | 1.39 | ||
| Quick Ratio | 1.38 |
3. Growth
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.
- 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
- 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 15.04% yearly.
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
- 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 26.94 indicates a quite expensive valuation of MSF.
- 67.83% of the companies in the same industry are more expensive than MSF, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.41, MSF is valued at the same level.
- A Price/Forward Earnings ratio of 21.64 indicates a rather expensive valuation of MSF.
- Based on the Price/Forward Earnings ratio, MSF is valued a bit cheaper than 67.83% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, MSF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.94 | ||
| Fwd PE | 21.64 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.78 | ||
| EV/EBITDA | 17.36 |
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 18.31% in the coming years.
PEG (NY)1.18
PEG (5Y)1.43
EPS Next 2Y18.47%
EPS Next 3Y18.31%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.84%, MSF is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.64, MSF pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector 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
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 2Y18.47%
EPS Next 3Y18.31%
FRA:MSF (2/3/2026, 5:29:55 PM)
349.95
-11.1 (-3.07%)
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 Owners75.56%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.60T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.97
Price Target543.97 (55.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.94 | ||
| Fwd PE | 21.64 | ||
| P/S | 10.08 | ||
| P/FCF | 39.78 | ||
| P/OCF | 19.19 | ||
| P/B | 7.88 | ||
| P/tB | 12.27 | ||
| EV/EBITDA | 17.36 |
EPS(TTM)12.99
EY3.71%
EPS(NY)16.17
Fwd EY4.62%
FCF(TTM)8.8
FCFY2.51%
OCF(TTM)18.24
OCFY5.21%
SpS34.71
BVpS44.42
TBVpS28.52
PEG (NY)1.18
PEG (5Y)1.43
Graham Number113.94
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 | 8.79 |
F-Score6
WACC11.01%
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 26.94 and the Price/Book (PB) ratio is 7.88.
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%.