MICROSOFT CORP-CDR (MSFT.CA) Fundamental Analysis & Valuation

TSX:MSFT • CA59516M1041

Current stock price

29.35 CAD
-0.95 (-3.14%)
Last:

This MSFT.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. MSFT.CA Profitability Analysis

1.1 Basic Checks

  • In the past year MSFT was profitable.
  • MSFT had a positive operating cash flow in the past year.
  • In the past 5 years MSFT has always been profitable.
  • In the past 5 years MSFT always reported a positive cash flow from operatings.
MSFT.CA Yearly Net Income VS EBIT VS OCF VS FCFMSFT.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 17.37%, MSFT belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
  • The Return On Equity of MSFT (30.64%) is better than 93.94% of its industry peers.
  • MSFT has a better Return On Invested Capital (22.54%) than 92.42% of its industry peers.
  • MSFT had an Average Return On Invested Capital over the past 3 years of 23.84%. This is significantly above the industry average of 12.70%.
Industry RankSector Rank
ROA 17.37%
ROE 30.64%
ROIC 22.54%
ROA(3y)18.24%
ROA(5y)17.55%
ROE(3y)37.2%
ROE(5y)38.43%
ROIC(3y)23.84%
ROIC(5y)22.71%
MSFT.CA Yearly ROA, ROE, ROICMSFT.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

  • MSFT has a better Profit Margin (35.43%) than 95.45% of its industry peers.
  • MSFT's Profit Margin has improved in the last couple of years.
  • MSFT has a Operating Margin of 44.96%. This is amongst the best in the industry. MSFT outperforms 98.48% of its industry peers.
  • In the last couple of years the Operating Margin of MSFT has grown nicely.
  • The Gross Margin of MSFT (69.41%) is better than 69.70% of its industry peers.
  • In the last couple of years the Gross Margin of MSFT has remained more or less at the same level.
Industry RankSector Rank
OM 44.96%
PM (TTM) 35.43%
GM 69.41%
OM growth 3Y2.39%
OM growth 5Y5.51%
PM growth 3Y-0.46%
PM growth 5Y2.89%
GM growth 3Y0.4%
GM growth 5Y1.15%
MSFT.CA Yearly Profit, Operating, Gross MarginsMSFT.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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6

2. MSFT.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MSFT is creating value.
  • Compared to 1 year ago, MSFT has about the same amount of shares outstanding.
  • MSFT has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, MSFT has an improved debt to assets ratio.
MSFT.CA Yearly Shares OutstandingMSFT.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
MSFT.CA Yearly Total Debt VS Total AssetsMSFT.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B 500B

2.2 Solvency

  • MSFT has an Altman-Z score of 2.24. This is not the best score and indicates that MSFT is in the grey zone with still only limited risk for bankruptcy at the moment.
  • The Altman-Z score of MSFT (2.24) is better than 63.64% of its industry peers.
  • The Debt to FCF ratio of MSFT is 1.16, which is an excellent value as it means it would take MSFT, only 1.16 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of MSFT (1.16) is better than 78.79% of its industry peers.
  • A Debt/Equity ratio of 0.24 indicates that MSFT is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.24, MSFT is in line with its industry, outperforming 57.58% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 1.16
Altman-Z 2.24
ROIC/WACC1.95
WACC11.59%
MSFT.CA Yearly LT Debt VS Equity VS FCFMSFT.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B 250B

2.3 Liquidity

  • MSFT has a Current Ratio of 1.35. This is a normal value and indicates that MSFT is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of MSFT (1.35) is comparable to the rest of the industry.
  • A Quick Ratio of 1.34 indicates that MSFT should not have too much problems paying its short term obligations.
  • MSFT has a Quick ratio (1.34) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.35
Quick Ratio 1.34
MSFT.CA Yearly Current Assets VS Current LiabilitesMSFT.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

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6

3. MSFT.CA Growth Analysis

3.1 Past

  • MSFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.30%, which is quite good.
  • The Earnings Per Share has been growing by 19.98% on average over the past years. This is quite good.
  • MSFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.04%.
  • The Revenue has been growing by 14.26% on average over the past years. This is quite good.
EPS 1Y (TTM)12.3%
EPS 3Y14.01%
EPS 5Y19.98%
EPS Q2Q%10.24%
Revenue 1Y (TTM)15.04%
Revenue growth 3Y13.4%
Revenue growth 5Y14.26%
Sales Q2Q%12.27%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.82% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 13.95% on average over the next years. This is quite good.
EPS Next Y13.17%
EPS Next 2Y13.6%
EPS Next 3Y14.77%
EPS Next 5Y14.82%
Revenue Next Year13.05%
Revenue Next 2Y13.39%
Revenue Next 3Y13.84%
Revenue Next 5Y13.95%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
MSFT.CA Yearly Revenue VS EstimatesMSFT.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 200B 400B 600B
MSFT.CA Yearly EPS VS EstimatesMSFT.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15 20

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9

4. MSFT.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 1.66, the valuation of MSFT can be described as very cheap.
  • MSFT's Price/Earnings ratio is rather cheap when compared to the industry. MSFT is cheaper than 98.48% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of MSFT to the average of the S&P500 Index (26.64), we can say MSFT is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 1.36, the valuation of MSFT can be described as very cheap.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MSFT indicates a rather cheap valuation: MSFT is cheaper than 96.97% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of MSFT to the average of the S&P500 Index (21.36), we can say MSFT is valued rather cheaply.
Industry RankSector Rank
PE 1.66
Fwd PE 1.36
MSFT.CA Price Earnings VS Forward Price EarningsMSFT.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MSFT is valued cheaper than 98.48% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, MSFT is valued cheaper than 96.97% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.19
EV/EBITDA 0.77
MSFT.CA Per share dataMSFT.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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.
  • MSFT has an outstanding profitability rating, which may justify a higher PE ratio.
  • MSFT's earnings are expected to grow with 14.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)0.08
EPS Next 2Y13.6%
EPS Next 3Y14.77%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. MSFT.CA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.80%, MSFT is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.47, MSFT pays a better dividend. On top of this MSFT pays more dividend than 92.42% of the companies listed in the same industry.
  • With a Dividend Yield of 0.80, MSFT pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.8%

5.2 History

  • On average, the dividend of MSFT grows each year by 10.19%, which is quite nice.
  • MSFT has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)10.19%
Div Incr YearsN/A
Div Non Decr YearsN/A
MSFT.CA Yearly Dividends per shareMSFT.CA Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.05 0.1 0.15 0.2

5.3 Sustainability

  • 24.68% of the earnings are spent on dividend by MSFT. This is a low number and sustainable payout ratio.
  • The dividend of MSFT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.68%
EPS Next 2Y13.6%
EPS Next 3Y14.77%
MSFT.CA Yearly Income VS Free CF VS DividendMSFT.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B
MSFT.CA Dividend Payout.MSFT.CA Dividend Payout, showing the Payout Ratio.MSFT.CA Dividend Payout.PayoutRetained Earnings

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MSFT.CA Fundamentals: All Metrics, Ratios and Statistics

MICROSOFT CORP-CDR

TSX:MSFT (5/1/2026, 7:00:00 PM)

29.35

-0.95 (-3.14%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength6.83
Industry Growth86.34
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners74.18%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap218.19B
Revenue(TTM)261.80B
Net Income(TTM)92.75B
Analysts84.92
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
Yearly Dividend2.93
Dividend Growth(5Y)10.19%
DP24.68%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.11%
Min EPS beat(2)1.79%
Max EPS beat(2)4.43%
EPS beat(4)3
Avg EPS beat(4)1.76%
Min EPS beat(4)-1.43%
Max EPS beat(4)4.43%
EPS beat(8)7
Avg EPS beat(8)3.99%
EPS beat(12)8
Avg EPS beat(12)2.17%
EPS beat(16)12
Avg EPS beat(16)3.56%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)-0.32%
Revenue beat(4)0
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)-0.26%
Revenue beat(8)2
Avg Revenue beat(8)-0.1%
Revenue beat(12)2
Avg Revenue beat(12)-0.7%
Revenue beat(16)4
Avg Revenue beat(16)-0.36%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 1.66
Fwd PE 1.36
P/S 0.59
P/FCF 2.19
P/OCF 1.22
P/B 0.51
P/tB 0.97
EV/EBITDA 0.77
EPS(TTM)17.63
EY60.07%
EPS(NY)21.64
Fwd EY73.72%
FCF(TTM)13.37
FCFY45.56%
OCF(TTM)23.98
OCFY81.71%
SpS49.99
BVpS57.8
TBVpS30.19
PEG (NY)0.13
PEG (5Y)0.08
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 17.37%
ROE 30.64%
ROCE 27.7%
ROIC 22.54%
ROICexc 27.11%
ROICexgc 45.87%
OM 44.96%
PM (TTM) 35.43%
GM 69.41%
FCFM 26.75%
ROA(3y)18.24%
ROA(5y)17.55%
ROE(3y)37.2%
ROE(5y)38.43%
ROIC(3y)23.84%
ROIC(5y)22.71%
ROICexc(3y)35.43%
ROICexc(5y)40.49%
ROICexgc(3y)63.99%
ROICexgc(5y)78.75%
ROCE(3y)29.44%
ROCE(5y)28%
ROICexgc growth 3Y-19.4%
ROICexgc growth 5Y-12.98%
ROICexc growth 3Y-17.33%
ROICexc growth 5Y-7.77%
OM growth 3Y2.39%
OM growth 5Y5.51%
PM growth 3Y-0.46%
PM growth 5Y2.89%
GM growth 3Y0.4%
GM growth 5Y1.15%
F-Score6
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 1.16
Debt/EBITDA 0.51
Cap/Depr 208.71%
Cap/Sales 21.22%
Interest Coverage 250
Cash Conversion 87.01%
Profit Quality 75.51%
Current Ratio 1.35
Quick Ratio 1.34
Altman-Z 2.24
F-Score6
WACC11.59%
ROIC/WACC1.95
Cap/Depr(3y)189.18%
Cap/Depr(5y)172.93%
Cap/Sales(3y)14.49%
Cap/Sales(5y)13.3%
Profit Quality(3y)85.27%
Profit Quality(5y)89.91%
High Growth Momentum
Growth
EPS 1Y (TTM)12.3%
EPS 3Y14.01%
EPS 5Y19.98%
EPS Q2Q%10.24%
EPS Next Y13.17%
EPS Next 2Y13.6%
EPS Next 3Y14.77%
EPS Next 5Y14.82%
Revenue 1Y (TTM)15.04%
Revenue growth 3Y13.4%
Revenue growth 5Y14.26%
Sales Q2Q%12.27%
Revenue Next Year13.05%
Revenue Next 2Y13.39%
Revenue Next 3Y13.84%
Revenue Next 5Y13.95%
EBIT growth 1Y17.09%
EBIT growth 3Y16.11%
EBIT growth 5Y20.56%
EBIT Next Year40.23%
EBIT Next 3Y23.1%
EBIT Next 5Y19.13%
FCF growth 1Y17.47%
FCF growth 3Y9.69%
FCF growth 5Y14.13%
OCF growth 1Y48.82%
OCF growth 3Y15.6%
OCF growth 5Y17.83%

MICROSOFT CORP-CDR / MSFT.CA Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for MICROSOFT CORP-CDR?

ChartMill assigns a fundamental rating of 7 / 10 to MSFT.CA.


What is the valuation status of MICROSOFT CORP-CDR (MSFT.CA) stock?

ChartMill assigns a valuation rating of 9 / 10 to MICROSOFT CORP-CDR (MSFT.CA). This can be considered as Undervalued.


What is the profitability of MSFT stock?

MICROSOFT CORP-CDR (MSFT.CA) has a profitability rating of 9 / 10.


What are the PE and PB ratios of MICROSOFT CORP-CDR (MSFT.CA) stock?

The Price/Earnings (PE) ratio for MICROSOFT CORP-CDR (MSFT.CA) is 1.66 and the Price/Book (PB) ratio is 0.51.


How sustainable is the dividend of MICROSOFT CORP-CDR (MSFT.CA) stock?

The dividend rating of MICROSOFT CORP-CDR (MSFT.CA) is 5 / 10 and the dividend payout ratio is 24.68%.