MICROSOFT CORP-CDR (MSFT.CA) Stock Fundamental Analysis

TSX:MSFT • CA59516M1041

27.61 CAD
-2.69 (-8.88%)
Last: Feb 24, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall MSFT gets a fundamental rating of 7 out of 10. We evaluated MSFT against 66 industry peers in the Software industry. While MSFT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MSFT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, MSFT could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • MSFT had positive earnings in the past year.
  • 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

  • MSFT has a Return On Assets of 17.37%. This is amongst the best in the industry. MSFT outperforms 93.94% of its industry peers.
  • MSFT has a better Return On Equity (30.64%) than 93.94% of its industry peers.
  • With an excellent Return On Invested Capital value of 22.54%, MSFT belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for MSFT is significantly above the industry average of 12.35%.
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.
  • The Operating Margin of MSFT (44.96%) is better than 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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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSFT is creating value.
  • The number of shares outstanding for MSFT remains at a similar level compared to 1 year ago.
  • MSFT has less shares outstanding than it did 5 years ago.
  • MSFT has a better debt/assets ratio than last year.
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

  • An Altman-Z score of 2.24 indicates that MSFT is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.24, MSFT is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
  • 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.
  • MSFT has a better Debt to FCF ratio (1.16) than 78.79% of its industry peers.
  • A Debt/Equity ratio of 0.24 indicates that MSFT is not too dependend on debt financing.
  • MSFT has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: MSFT outperforms 57.58% of its industry peers.
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.
  • MSFT has a Current ratio (1.35) which 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's Quick ratio of 1.34 is in line compared to the rest of the industry. MSFT outperforms 57.58% of 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

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.
  • MSFT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.98% yearly.
  • Looking at the last year, MSFT shows a quite strong growth in Revenue. The Revenue has grown by 15.04% in the last year.
  • 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

  • Based on estimates for the next years, MSFT will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.82% on average per year.
  • 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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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 1.57, the valuation of MSFT can be described as very cheap.
  • Based on the Price/Earnings ratio, MSFT is valued cheaper than 98.48% of the companies in the same industry.
  • MSFT is valuated cheaply when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 1.28, the valuation of MSFT can be described as very cheap.
  • 96.97% of the companies in the same industry are more expensive than MSFT, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 28.01. MSFT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 1.57
Fwd PE 1.28
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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSFT indicates a rather cheap valuation: MSFT is cheaper than 96.97% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 2.06
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

  • MSFT's 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.
  • A more expensive valuation may be justified as MSFT's earnings are expected to grow with 14.77% in the coming years.
PEG (NY)0.12
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. Dividend

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 0.28, MSFT pays a better dividend. On top of this MSFT pays more dividend than 92.42% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, MSFT's dividend is way lower than the S&P500 average.
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.
  • MSFT's earnings are growing more than its dividend. This makes the dividend growth 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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Find the best dividend stocksShow peers with best dividend

MICROSOFT CORP-CDR

TSX:MSFT (2/24/2026, 7:00:00 PM)

27.61

-2.69 (-8.88%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners74.18%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap205.25B
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 1.57
Fwd PE 1.28
P/S 0.55
P/FCF 2.06
P/OCF 1.15
P/B 0.48
P/tB 0.91
EV/EBITDA 0.77
EPS(TTM)17.63
EY63.85%
EPS(NY)21.64
Fwd EY78.36%
FCF(TTM)13.37
FCFY48.44%
OCF(TTM)23.98
OCFY86.86%
SpS49.99
BVpS57.8
TBVpS30.19
PEG (NY)0.12
PEG (5Y)0.08
Graham NumberN/A
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 FAQ

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

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


Can you provide the valuation status for MICROSOFT CORP-CDR?

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


Can you provide the profitability details for MICROSOFT CORP-CDR?

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


What is the financial health of MICROSOFT CORP-CDR (MSFT.CA) stock?

The financial health rating of MICROSOFT CORP-CDR (MSFT.CA) is 6 / 10.


What is the expected EPS growth for MICROSOFT CORP-CDR (MSFT.CA) stock?

The Earnings per Share (EPS) of MICROSOFT CORP-CDR (MSFT.CA) is expected to grow by 13.17% in the next year.