MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MSF - US5949181045 - Common Stock
397.3 EUR
-6.1 (-1.51%)
Overall MSF gets a fundamental rating of 7 out of 10. We evaluated MSF against 125 industry peers in the Software industry. MSF gets an excellent profitability rating and is at the same time showing great financial health properties. MSF has a decent growth rate and is not valued too expensively. 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.
- 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 has a Return On Assets of 16.49%. This is amongst the best in the industry. MSF outperforms 89.60% of its industry peers.
- With an excellent Return On Equity value of 28.90%, MSF belongs to the best of the industry, outperforming 84.80% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 22.25%, MSF belongs to the top of the industry, outperforming 92.80% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for MSF is significantly above the industry average of 12.89%.
| 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
- Looking at the Profit Margin, with a value of 35.71%, MSF belongs to the top of the industry, outperforming 92.80% of the companies in the same industry.
- MSF's Profit Margin has improved in the last couple of years.
- MSF has a better Operating Margin (46.27%) than 96.80% 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 41.60% 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSF 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.
- Compared to 1 year ago, MSF has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 9.50 indicates that MSF is not in any danger for bankruptcy at the moment.
- MSF has a better Altman-Z score (9.50) than 88.00% 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's Debt to FCF ratio of 1.25 is fine compared to the rest of the industry. MSF outperforms 71.20% of its industry peers.
- MSF has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of MSF (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.5 |
ROIC/WACC2.04
WACC10.92%
2.3 Liquidity
- A Current Ratio of 1.40 indicates that MSF should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.40, MSF perfoms like the industry average, outperforming 47.20% of the companies in the same industry.
- A Quick Ratio of 1.39 indicates that MSF should not have too much problems paying its short term obligations.
- The Quick ratio of MSF (1.39) is comparable to the rest of the industry.
- 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 | 1.4 | ||
| 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.
- 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
- 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.
- 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 Y22.64%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
EPS Next 5Y18.83%
Revenue Next Year17.03%
Revenue Next 2Y15.87%
Revenue Next 3Y15.99%
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
- With a Price/Earnings ratio of 31.99, MSF can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, MSF is valued a bit cheaper than 64.80% of the companies in the same industry.
- MSF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 24.22, which indicates a rather expensive current valuation of MSF.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 67.20% of the companies listed in the same industry.
- MSF's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.99 | ||
| Fwd PE | 24.22 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MSF is valued a bit cheaper than 60.80% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as MSF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.11 | ||
| EV/EBITDA | 19.44 |
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.
- MSF's earnings are expected to grow with 18.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)1.7
EPS Next 2Y18.39%
EPS Next 3Y18.24%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.76%, MSF is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.62, MSF pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.76, MSF pays less dividend than the S&P500 average, which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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 23.52% of its income as dividend. This is a sustainable payout ratio.
- MSF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.52%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
FRA:MSF (1/14/2026, 7:00:00 PM)
397.3
-6.1 (-1.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners75.56%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.95T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts85.97
Price Target540.03 (35.92%)
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)-0.31%
PT rev (3m)2.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)5.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.99 | ||
| Fwd PE | 24.22 | ||
| P/S | 11.71 | ||
| P/FCF | 44.11 | ||
| P/OCF | 23.4 | ||
| P/B | 9.48 | ||
| P/tB | 15.48 | ||
| EV/EBITDA | 19.44 |
EPS(TTM)12.42
EY3.13%
EPS(NY)16.4
Fwd EY4.13%
FCF(TTM)9.01
FCFY2.27%
OCF(TTM)16.98
OCFY4.27%
SpS33.92
BVpS41.92
TBVpS25.67
PEG (NY)1.41
PEG (5Y)1.7
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 | 9.5 |
F-Score6
WACC10.92%
ROIC/WACC2.04
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 Y22.64%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
EPS Next 5Y18.83%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year17.03%
Revenue Next 2Y15.87%
Revenue Next 3Y15.99%
Revenue Next 5Y15.04%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year58.37%
EBIT Next 3Y29.48%
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.
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 31.99 and the Price/Book (PB) ratio is 9.48.
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 23.52%.