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MICROSTRATEGY INC-CL A (MSTR) Stock Fundamental Analysis

NASDAQ:MSTR - Nasdaq - US5949724083 - Common Stock - Currency: USD

255.43  +15.38 (+6.41%)

After market: 257 +1.57 (+0.61%)

Fundamental Rating

1

Taking everything into account, MSTR scores 1 out of 10 in our fundamental rating. MSTR was compared to 283 industry peers in the Software industry. Both the profitability and financial health of MSTR have multiple concerns. MSTR has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year MSTR has reported negative net income.
MSTR had a negative operating cash flow in the past year.
In the past 5 years MSTR reported 4 times negative net income.
MSTR had a positive operating cash flow in 4 of the past 5 years.
MSTR Yearly Net Income VS EBIT VS OCF VS FCFMSTR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -5B -10B -15B -20B

1.2 Ratios

Looking at the Return On Assets, with a value of -4.51%, MSTR is in line with its industry, outperforming 48.00% of the companies in the same industry.
With a Return On Equity value of -6.40%, MSTR perfoms like the industry average, outperforming 53.82% of the companies in the same industry.
Industry RankSector Rank
ROA -4.51%
ROE -6.4%
ROIC N/A
ROA(3y)-18.83%
ROA(5y)-14.41%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
MSTR Yearly ROA, ROE, ROICMSTR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300

1.3 Margins

With a Gross Margin value of 72.06%, MSTR perfoms like the industry average, outperforming 58.91% of the companies in the same industry.
MSTR's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for MSTR so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 72.06%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.22%
GM growth 5Y-1.93%
MSTR Yearly Profit, Operating, Gross MarginsMSTR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -100 -200

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2

2. Health

2.1 Basic Checks

MSTR does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MSTR has more shares outstanding
MSTR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MSTR has been reduced compared to a year ago.
MSTR Yearly Shares OutstandingMSTR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
MSTR Yearly Total Debt VS Total AssetsMSTR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

An Altman-Z score of 5.08 indicates that MSTR is not in any danger for bankruptcy at the moment.
MSTR has a better Altman-Z score (5.08) than 66.18% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that MSTR is not too dependend on debt financing.
MSTR has a Debt to Equity ratio of 0.39. This is in the lower half of the industry: MSTR underperforms 64.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Altman-Z 5.08
ROIC/WACCN/A
WACC13.55%
MSTR Yearly LT Debt VS Equity VS FCFMSTR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B -20B

2.3 Liquidity

MSTR has a Current Ratio of 0.71. This is a bad value and indicates that MSTR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MSTR (0.71) is worse than 86.91% of its industry peers.
MSTR has a Quick Ratio of 0.71. This is a bad value and indicates that MSTR is not financially healthy enough and could expect problems in meeting its short term obligations.
MSTR has a Quick ratio of 0.71. This is amonst the worse of the industry: MSTR underperforms 85.82% of its industry peers.
Industry RankSector Rank
Current Ratio 0.71
Quick Ratio 0.71
MSTR Yearly Current Assets VS Current LiabilitesMSTR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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1

3. Growth

3.1 Past

The earnings per share for MSTR have decreased strongly by -317.04% in the last year.
The Revenue has decreased by -6.61% in the past year.
The Revenue has been decreasing by -0.96% on average over the past years.
EPS 1Y (TTM)-317.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-687.19%
Revenue 1Y (TTM)-6.61%
Revenue growth 3Y-3.19%
Revenue growth 5Y-0.96%
Sales Q2Q%-3.04%

3.2 Future

Based on estimates for the next years, MSTR will show a very strong growth in Earnings Per Share. The EPS will grow by 25.25% on average per year.
MSTR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.79% yearly.
EPS Next Y92.93%
EPS Next 2Y40.29%
EPS Next 3Y25.25%
EPS Next 5YN/A
Revenue Next Year1.93%
Revenue Next 2Y2.85%
Revenue Next 3Y1.73%
Revenue Next 5Y-0.79%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
MSTR Yearly Revenue VS EstimatesMSTR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M
MSTR Yearly EPS VS EstimatesMSTR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 -5 -10

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1

4. Valuation

4.1 Price/Earnings Ratio

MSTR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for MSTR. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
MSTR Price Earnings VS Forward Price EarningsMSTR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
MSTR Per share dataMSTR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50

4.3 Compensation for Growth

A more expensive valuation may be justified as MSTR's earnings are expected to grow with 25.25% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.29%
EPS Next 3Y25.25%

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0

5. Dividend

5.1 Amount

MSTR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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MICROSTRATEGY INC-CL A

NASDAQ:MSTR (2/28/2025, 8:03:26 PM)

After market: 257 +1.57 (+0.61%)

255.43

+15.38 (+6.41%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05 2025-02-05/amc
Earnings (Next)04-28 2025-04-28/amc
Inst Owners47.11%
Inst Owner Change16.32%
Ins Owners0.19%
Ins Owner Change-4.31%
Market Cap65.95B
Analysts85
Price Target448.34 (75.52%)
Short Float %10.09%
Short Ratio1.19
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2654.83%
Min EPS beat(2)-4213.73%
Max EPS beat(2)-1095.94%
EPS beat(4)0
Avg EPS beat(4)-2059.07%
Min EPS beat(4)-4213.73%
Max EPS beat(4)-409.27%
EPS beat(8)3
Avg EPS beat(8)-715.54%
EPS beat(12)3
Avg EPS beat(12)-9691.2%
EPS beat(16)7
Avg EPS beat(16)-7234.37%
Revenue beat(2)0
Avg Revenue beat(2)-5.61%
Min Revenue beat(2)-7.22%
Max Revenue beat(2)-3.99%
Revenue beat(4)0
Avg Revenue beat(4)-7.32%
Min Revenue beat(4)-10.88%
Max Revenue beat(4)-3.99%
Revenue beat(8)2
Avg Revenue beat(8)-5.24%
Revenue beat(12)2
Avg Revenue beat(12)-4.76%
Revenue beat(16)4
Avg Revenue beat(16)-3.13%
PT rev (1m)3.43%
PT rev (3m)63.7%
EPS NQ rev (1m)-9.09%
EPS NQ rev (3m)1.64%
EPS NY rev (1m)-7.66%
EPS NY rev (3m)-3.97%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)0.2%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 142.29
P/FCF N/A
P/OCF N/A
P/B 3.62
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-6.42
EYN/A
EPS(NY)-0.45
Fwd EYN/A
FCF(TTM)-85.71
FCFYN/A
OCF(TTM)-0.21
OCFYN/A
SpS1.8
BVpS70.61
TBVpS-22
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.51%
ROE -6.4%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 72.06%
FCFM N/A
ROA(3y)-18.83%
ROA(5y)-14.41%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.22%
GM growth 5Y-1.93%
F-Score2
Asset Turnover0.02
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 123965%
Cap/Sales 4763.29%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.71
Quick Ratio 0.71
Altman-Z 5.08
F-Score2
WACC13.55%
ROIC/WACCN/A
Cap/Depr(3y)46583.7%
Cap/Depr(5y)34273.1%
Cap/Sales(3y)1735.12%
Cap/Sales(5y)1190.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-317.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-687.19%
EPS Next Y92.93%
EPS Next 2Y40.29%
EPS Next 3Y25.25%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.61%
Revenue growth 3Y-3.19%
Revenue growth 5Y-0.96%
Sales Q2Q%-3.04%
Revenue Next Year1.93%
Revenue Next 2Y2.85%
Revenue Next 3Y1.73%
Revenue Next 5Y-0.79%
EBIT growth 1Y-7950.25%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year104.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1069.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-517.18%
OCF growth 3YN/A
OCF growth 5YN/A