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MICROSTRATEGY INC-CL A (MSTR) Stock Fundamental Analysis

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

341.25  +5.32 (+1.58%)

After market: 341.496 +0.25 (+0.07%)

Fundamental Rating

2

Taking everything into account, MSTR scores 2 out of 10 in our fundamental rating. MSTR was compared to 286 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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3

1. Profitability

1.1 Basic Checks

In the past year MSTR has reported negative net income.
In the past year MSTR has reported a negative cash flow from operations.
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.
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 0 -500M -1B -1.5B -2B -2.5B

1.2 Ratios

Looking at the Return On Assets, with a value of -4.87%, MSTR is in line with its industry, outperforming 48.75% of the companies in the same industry.
MSTR's Return On Equity of -10.78% is in line compared to the rest of the industry. MSTR outperforms 49.46% of its industry peers.
Industry RankSector Rank
ROA -4.87%
ROE -10.78%
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
MSTR Yearly ROA, ROE, ROICMSTR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 200 300

1.3 Margins

MSTR's Profit Margin has improved in the last couple of years.
In the last couple of years the Operating Margin of MSTR has declined.
The Gross Margin of MSTR (73.56%) is better than 61.65% 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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 73.56%
OM growth 3Y-76.1%
OM growth 5Y-27.34%
PM growth 3YN/A
PM growth 5Y80.43%
GM growth 3Y-1.34%
GM growth 5Y-0.55%
MSTR Yearly Profit, Operating, Gross MarginsMSTR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 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.
The number of shares outstanding for MSTR has been increased compared to 1 year ago.
MSTR has more shares outstanding than it did 5 years ago.
MSTR has a better debt/assets ratio than last year.
MSTR Yearly Shares OutstandingMSTR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
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 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 10.57 indicates that MSTR is not in any danger for bankruptcy at the moment.
The Altman-Z score of MSTR (10.57) is better than 82.08% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that MSTR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.12, MSTR is not doing good in the industry: 78.14% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF N/A
Altman-Z 10.57
ROIC/WACCN/A
WACC10.9%
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 0 1B -1B 2B -2B

2.3 Liquidity

A Current Ratio of 0.65 indicates that MSTR may have some problems paying its short term obligations.
MSTR's Current ratio of 0.65 is on the low side compared to the rest of the industry. MSTR is outperformed by 88.89% of its industry peers.
MSTR has a Quick Ratio of 0.65. 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 0.65. This is amonst the worse of the industry: MSTR underperforms 88.17% of its industry peers.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.65
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 200M 400M 600M 800M

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0

3. Growth

3.1 Past

MSTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1360.10%.
Measured over the past years, MSTR shows a very strong growth in Earnings Per Share. The EPS has been growing by 77.06% on average per year.
The Revenue has decreased by -7.35% in the past year.
Measured over the past years, MSTR shows a decrease in Revenue. The Revenue has been decreasing by -0.06% on average per year.
EPS 1Y (TTM)-1360.1%
EPS 3Y95.98%
EPS 5Y77.06%
EPS Q2Q%-91.54%
Revenue 1Y (TTM)-7.35%
Revenue growth 3Y1.07%
Revenue growth 5Y-0.06%
Sales Q2Q%-10.34%

3.2 Future

Based on estimates for the next years, MSTR will show a very negative growth in Earnings Per Share. The EPS will decrease by -215.77% on average per year.
The Revenue is expected to decrease by -2.11% on average over the next years.
EPS Next Y-191.03%
EPS Next 2Y176.68%
EPS Next 3Y-215.77%
EPS Next 5YN/A
Revenue Next Year-6.93%
Revenue Next 2Y-2.44%
Revenue Next 3Y0.57%
Revenue Next 5Y-2.11%

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 decreasing: in the next years the growth will be less 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 20 -20 -40 -60 -80

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2

4. Valuation

4.1 Price/Earnings Ratio

MSTR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 15.07, the valuation of MSTR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSTR indicates a rather cheap valuation: MSTR is cheaper than 87.46% of the companies listed in the same industry.
MSTR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
Industry RankSector Rank
PE N/A
Fwd PE 15.07
MSTR Price Earnings VS Forward Price EarningsMSTR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 -100

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 10 -10 20 -20

4.3 Compensation for Growth

A cheap valuation may be justified as MSTR's earnings are expected to decrease with -215.77% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y176.68%
EPS Next 3Y-215.77%

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0

5. Dividend

5.1 Amount

No dividends for MSTR!.
Industry RankSector Rank
Dividend Yield N/A

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MICROSTRATEGY INC-CL A

NASDAQ:MSTR (1/29/2025, 8:00:02 PM)

After market: 341.496 +0.25 (+0.07%)

341.25

+5.32 (+1.58%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)02-05 2025-02-05/amc
Inst Owners50.47%
Inst Owner Change0.04%
Ins Owners0.25%
Ins Owner Change-13.22%
Market Cap83.56B
Analysts84
Price Target433.46 (27.02%)
Short Float %10.34%
Short Ratio0.79
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)-752.6%
Min EPS beat(2)-1095.94%
Max EPS beat(2)-409.27%
EPS beat(4)1
Avg EPS beat(4)-780.19%
Min EPS beat(4)-2517.33%
Max EPS beat(4)901.78%
EPS beat(8)3
Avg EPS beat(8)-13638.8%
EPS beat(12)4
Avg EPS beat(12)-9319.26%
EPS beat(16)7
Avg EPS beat(16)-6975.79%
Revenue beat(2)0
Avg Revenue beat(2)-9.05%
Min Revenue beat(2)-10.88%
Max Revenue beat(2)-7.22%
Revenue beat(4)0
Avg Revenue beat(4)-8.36%
Min Revenue beat(4)-10.88%
Max Revenue beat(4)-7.18%
Revenue beat(8)2
Avg Revenue beat(8)-4.85%
Revenue beat(12)2
Avg Revenue beat(12)-4.51%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)6.55%
PT rev (3m)116.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-166.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-236.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.12%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 15.07
P/S 178.83
P/FCF N/A
P/OCF N/A
P/B 22.14
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-2.56
EYN/A
EPS(NY)22.64
Fwd EY6.64%
FCF(TTM)-21.48
FCFYN/A
OCF(TTM)-0.14
OCFYN/A
SpS1.91
BVpS15.41
TBVpS-12.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.87%
ROE -10.78%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 73.56%
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)0.65%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-76.1%
OM growth 5Y-27.34%
PM growth 3YN/A
PM growth 5Y80.43%
GM growth 3Y-1.34%
GM growth 5Y-0.55%
F-Score2
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 29355.6%
Cap/Sales 1118.39%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.65
Quick Ratio 0.65
Altman-Z 10.57
F-Score2
WACC10.9%
ROIC/WACCN/A
Cap/Depr(3y)12978.2%
Cap/Depr(5y)9492.25%
Cap/Sales(3y)318.95%
Cap/Sales(5y)238.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1360.1%
EPS 3Y95.98%
EPS 5Y77.06%
EPS Q2Q%-91.54%
EPS Next Y-191.03%
EPS Next 2Y176.68%
EPS Next 3Y-215.77%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.35%
Revenue growth 3Y1.07%
Revenue growth 5Y-0.06%
Sales Q2Q%-10.34%
Revenue Next Year-6.93%
Revenue Next 2Y-2.44%
Revenue Next 3Y0.57%
Revenue Next 5Y-2.11%
EBIT growth 1Y-781.24%
EBIT growth 3Y-75.85%
EBIT growth 5Y-27.38%
EBIT Next Year-56.52%
EBIT Next 3Y-5.27%
EBIT Next 5YN/A
FCF growth 1Y-557.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-240.02%
OCF growth 3Y-38.11%
OCF growth 5Y3.65%