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MICROSTRATEGY INC-CL A (MSTR) Stock Fundamental Analysis

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

368.71  +18.37 (+5.24%)

Premarket: 372 +3.29 (+0.89%)

Fundamental Rating

2

MSTR gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 281 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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2

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.
MSTR had negative earnings in 4 of the past 5 years.
Of the past 5 years MSTR 4 years 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 2024 0 -5B -10B -15B -20B

1.2 Ratios

MSTR has a Return On Assets (-4.51%) which is in line with its industry peers.
MSTR has a Return On Equity (-6.40%) which is in line with its industry peers.
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

Looking at the Gross Margin, with a value of 72.06%, MSTR is in the better half of the industry, outperforming 60.85% 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.
MSTR has more shares outstanding than it did 1 year ago.
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.
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 7.62 indicates that MSTR is not in any danger for bankruptcy at the moment.
The Altman-Z score of MSTR (7.62) is better than 79.72% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that MSTR is not too dependend on debt financing.
MSTR has a worse Debt to Equity ratio (0.39) than 62.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Altman-Z 7.62
ROIC/WACCN/A
WACC10.32%
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

A Current Ratio of 0.71 indicates that MSTR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.71, MSTR is doing worse than 86.48% of the companies in the same industry.
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.
With a Quick ratio value of 0.71, MSTR is not doing good in the industry: 86.12% of the companies in the same industry are doing better.
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.
MSTR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.96% yearly.
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

The Earnings Per Share is expected to grow by 60.44% on average over the next years. This is a very strong growth
Based on estimates for the next years, MSTR will show a decrease in Revenue. The Revenue will decrease by -0.79% on average per year.
EPS Next Y93.14%
EPS Next 2Y39.01%
EPS Next 3Y60.44%
EPS Next 5YN/A
Revenue Next Year1.51%
Revenue Next 2Y2.58%
Revenue Next 3Y1.74%
Revenue Next 5Y-0.79%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 0 5 -5 10 -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.
Also next year MSTR is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
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 -600 -800

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 60.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.01%
EPS Next 3Y60.44%

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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 (4/25/2025, 8:24:53 PM)

Premarket: 372 +3.29 (+0.89%)

368.71

+18.37 (+5.24%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05 2025-02-05/amc
Earnings (Next)05-01 2025-05-01/amc
Inst Owners47.11%
Inst Owner Change0.31%
Ins Owners0.19%
Ins Owner Change28.12%
Market Cap98.14B
Analysts83.33
Price Target452.21 (22.65%)
Short Float %11.87%
Short Ratio1.51
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
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)0.86%
PT rev (3m)4.33%
EPS NQ rev (1m)5.72%
EPS NQ rev (3m)21.43%
EPS NY rev (1m)4%
EPS NY rev (3m)-101.95%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-1.03%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 211.76
P/FCF N/A
P/OCF N/A
P/B 5.38
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-6.42
EYN/A
EPS(NY)-0.44
Fwd EYN/A
FCF(TTM)-83.13
FCFYN/A
OCF(TTM)-0.2
OCFYN/A
SpS1.74
BVpS68.49
TBVpS-21.34
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 83992.5%
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 7.62
F-Score2
WACC10.32%
ROIC/WACCN/A
Cap/Depr(3y)33259.4%
Cap/Depr(5y)26278.5%
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 Y93.14%
EPS Next 2Y39.01%
EPS Next 3Y60.44%
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 Year1.51%
Revenue Next 2Y2.58%
Revenue Next 3Y1.74%
Revenue Next 5Y-0.79%
EBIT growth 1Y-7950.25%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year104.99%
EBIT Next 3Y115.1%
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