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

Canada • Toronto Stock Exchange • TSX:MSFT • CA59516M1041

29.44 CAD
-0.86 (-2.84%)
Last: Feb 4, 2026, 07:00 PM
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 is valued quite cheap, while showing a decent growth score. This is a good combination! This makes MSFT very considerable for value investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year MSFT was profitable.
  • MSFT had a positive operating cash flow in the past year.
  • Each year in the past 5 years MSFT has been profitable.
  • MSFT had a positive operating cash flow in each of the past 5 years.
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's Return On Assets of 17.37% is amongst the best of the industry. MSFT outperforms 93.94% of its industry peers.
  • With an excellent Return On Equity value of 30.64%, MSFT belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 22.54%, MSFT belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.
  • MSFT had an Average Return On Invested Capital over the past 3 years of 23.84%. This is significantly above the industry average of 12.50%.
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 better Operating Margin (44.96%) than 98.48% of its industry peers.
  • MSFT's Operating Margin has improved in the last couple of years.
  • MSFT's Gross Margin of 69.41% is fine compared to the rest of the industry. MSFT outperforms 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
  • 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

  • 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.
  • With a decent Altman-Z score value of 2.24, MSFT is doing good in the industry, outperforming 63.64% of the companies in the same industry.
  • MSFT has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.16, MSFT is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
  • A Debt/Equity ratio of 0.24 indicates that MSFT is not too dependend on debt financing.
  • MSFT has a Debt to Equity ratio (0.24) which is comparable to the rest of the 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

  • A Current Ratio of 1.35 indicates that MSFT should not have too much problems paying its short term obligations.
  • MSFT has a Current ratio (1.35) which is in line with its industry peers.
  • 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

More info and screens

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.
  • 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

  • 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.
  • MSFT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.95% yearly.
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

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

More info and screens

Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • MSFT is valuated cheaply with a Price/Earnings ratio of 1.67.
  • Compared to the rest of the industry, the Price/Earnings ratio of MSFT indicates a rather cheap valuation: MSFT is cheaper than 98.48% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of MSFT to the average of the S&P500 Index (28.25), 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.
  • MSFT's Price/Forward Earnings ratio is rather cheap when compared to the industry. MSFT is cheaper than 96.97% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.50, MSFT is valued rather cheaply.
Industry RankSector Rank
PE 1.67
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 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MSFT is valued cheaply inside the industry as 98.48% of the companies are valued more expensively.
  • 96.97% of the companies in the same industry are more expensive than MSFT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 2.2
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.
  • The excellent profitability rating of MSFT 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)0.13
PEG (5Y)0.08
EPS Next 2Y13.6%
EPS Next 3Y14.77%

More info and screens

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.
  • MSFT's Dividend Yield is rather good when compared to the industry average which is at 0.25. MSFT pays more dividend than 92.42% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, MSFT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.8%

5.2 History

  • The dividend of MSFT is nicely growing with an annual growth rate of 10.19%!
  • 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

More info and screens

Find the best dividend stocksShow peers with best dividend

MICROSOFT CORP-CDR

TSX:MSFT (2/4/2026, 7:00:00 PM)

29.44

-0.86 (-2.84%)

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 Cap218.86B
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 1.67
Fwd PE 1.36
P/S 0.59
P/FCF 2.2
P/OCF 1.23
P/B 0.51
P/tB 0.98
EV/EBITDA 0.77
EPS(TTM)17.63
EY59.88%
EPS(NY)21.64
Fwd EY73.49%
FCF(TTM)13.37
FCFY45.42%
OCF(TTM)23.98
OCFY81.46%
SpS49.99
BVpS57.8
TBVpS30.19
PEG (NY)0.13
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.