MICROSTRATEGY INC-CL A (MSTR)
US5949724083 - Common Stock
Overall MSTR gets a fundamental rating of 2 out of 10. We evaluated MSTR against 277 industry peers in the Software industry. MSTR has a medium profitability rating, but doesn't score so well on its financial health evaluation. MSTR is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MSTR had negative earnings in the past year.
MSTR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MSTR reported negative net income in multiple years.
Each year in the past 5 years MSTR had a positive operating cash flow.
1.2 Ratios
MSTR has a Return On Assets of -1.34%. This is in the better half of the industry: MSTR outperforms 62.18% of its industry peers.
The Return On Equity of MSTR (-3.55%) is better than 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.34% | ||
| ROE | -3.55% | ||
| ROIC | N/A |
ROA(3y)-22.34%
ROA(5y)-12.76%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MSTR's Profit Margin has improved in the last couple of years.
MSTR's Operating Margin has declined in the last couple of years.
MSTR's Gross Margin of 77.12% is fine compared to the rest of the industry. MSTR outperforms 73.45% of its industry peers.
MSTR's Gross Margin has been stable in the last couple of years.
MSTR does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 77.12% |
OM growth 3Y-76.11%
OM growth 5Y-27.41%
PM growth 3YN/A
PM growth 5Y80.43%
GM growth 3Y-1.34%
GM growth 5Y-0.55%
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
The number of shares outstanding for MSTR has been increased compared to 5 years ago.
MSTR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.07 indicates that MSTR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.07, MSTR is in the better half of the industry, outperforming 62.18% of the companies in the same industry.
A Debt/Equity ratio of 1.48 is on the high side and indicates that MSTR has dependencies on debt financing.
MSTR has a Debt to Equity ratio of 1.48. This is amonst the worse of the industry: MSTR underperforms 80.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.07 |
ROIC/WACCN/A
WACC9.53%
2.3 Liquidity
MSTR has a Current Ratio of 0.78. This is a bad value and indicates that MSTR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.78, MSTR is not doing good in the industry: 86.18% of the companies in the same industry are doing better.
A Quick Ratio of 0.78 indicates that MSTR may have some problems paying its short term obligations.
With a Quick ratio value of 0.78, MSTR is not doing good in the industry: 84.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
MSTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.43%, which is quite impressive.
MSTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 77.06% yearly.
Looking at the last year, MSTR shows a decrease in Revenue. The Revenue has decreased by -2.46% in the last year.
Measured over the past years, MSTR shows a decrease in Revenue. The Revenue has been decreasing by -0.05% on average per year.
EPS 1Y (TTM)89.43%
EPS 3Y95.98%
EPS 5Y77.06%
EPS growth Q2Q-127%
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y1.07%
Revenue growth 5Y-0.05%
Revenue growth Q2Q-5.47%
3.2 Future
The Earnings Per Share is expected to decrease by -46.83% on average over the next years. This is quite bad
The Revenue is expected to grow by 5.07% on average over the next years.
EPS Next Y-98.28%
EPS Next 2Y-80%
EPS Next 3Y-46.83%
EPS Next 5YN/A
Revenue Next Year-0.72%
Revenue Next 2Y1.6%
Revenue Next 3Y5.07%
Revenue Next 5YN/A
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for MSTR. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 1339.16, MSTR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, MSTR is valued a bit more expensive than the industry average as 61.45% of the companies are valued more cheaply.
MSTR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1339.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSTR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7206.73 |
4.3 Compensation for Growth
A cheap valuation may be justified as MSTR's earnings are expected to decrease with -46.83% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-80%
EPS Next 3Y-46.83%
5. Dividend
5.1 Amount
No dividends for MSTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MICROSTRATEGY INC-CL A
NASDAQ:MSTR (5/17/2024, 7:14:51 PM)
Premarket: 1613.79 +29.29 (+1.85%)1584.5
+144.52 (+10.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap27.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1339.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.34% | ||
| ROE | -3.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 77.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)89.43%
EPS 3Y95.98%
EPS 5Y
EPS growth Q2Q
EPS Next Y-98.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y1.07%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y