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MICROSTRATEGY INC-CL A (MSTR) Stock Fundamental Analysis

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

340.09  -1.16 (-0.34%)

After market: 340.46 +0.37 (+0.11%)

Fundamental Rating

2

MSTR gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 286 industry peers in the Software industry. MSTR may be in some trouble as it scores bad on both profitability and health. 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.
MSTR had a positive operating cash flow in each 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 0 -500M -1B -1.5B -2B -2.5B

1.2 Ratios

MSTR has a Return On Assets (-4.87%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -10.78%, MSTR is in line with its industry, outperforming 49.46% of the companies in the same industry.
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.
MSTR's Operating Margin has declined in the last couple of years.
MSTR's Gross Margin of 73.56% is fine compared to the rest of the industry. MSTR outperforms 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.
MSTR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MSTR has more shares outstanding
Compared to 1 year ago, MSTR has an improved debt to assets ratio.
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

MSTR has an Altman-Z score of 10.74. This indicates that MSTR is financially healthy and has little risk of bankruptcy at the moment.
MSTR has a Altman-Z score of 10.74. This is amongst the best in the industry. MSTR outperforms 82.80% 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.
MSTR has a Debt to Equity ratio of 1.12. This is in the lower half of the industry: MSTR underperforms 78.14% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF N/A
Altman-Z 10.74
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 has a Current ratio of 0.65. This is amonst the worse of the industry: MSTR underperforms 88.89% of its industry peers.
A Quick Ratio of 0.65 indicates that MSTR may have some problems paying its short term obligations.
MSTR has a worse Quick ratio (0.65) than 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%.
MSTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 77.06% yearly.
MSTR shows a decrease in Revenue. In the last year, the revenue decreased by -7.35%.
The Revenue has been decreasing by -0.06% on average over the past years.
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.
MSTR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.11% yearly.
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

The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
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.
A Price/Forward Earnings ratio of 15.02 indicates a correct valuation of MSTR.
MSTR's Price/Forward Earnings ratio is rather cheap when compared to the industry. MSTR is cheaper than 87.46% of the companies 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 93.88.
Industry RankSector Rank
PE N/A
Fwd PE 15.02
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

MSTR's earnings are expected to decrease with -215.77% in the coming years. This may justify a cheaper valuation.
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

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

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MICROSTRATEGY INC-CL A

NASDAQ:MSTR (1/30/2025, 8:00:01 PM)

After market: 340.46 +0.37 (+0.11%)

340.09

-1.16 (-0.34%)

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 Cap83.27B
Analysts84
Price Target433.46 (27.45%)
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 15.02
P/S 178.23
P/FCF N/A
P/OCF N/A
P/B 22.07
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-2.56
EYN/A
EPS(NY)22.64
Fwd EY6.66%
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 10.74
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%