MICROSTRATEGY INC-CL A (MSTR)
US5949724083 - Common Stock
We assign a fundamental rating of 2 out of 10 to MSTR. MSTR was compared to 277 industry peers in the Software industry. While MSTR is still in line with the averages on profitability rating, there are concerns on its financial health. MSTR does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year MSTR has reported negative net income.
MSTR had a positive operating cash flow in the past year.
In multiple years MSTR reported negative net income over the last 5 years.
In the past 5 years MSTR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MSTR (-1.34%) is better than 64.13% of its industry peers.
The Return On Equity of MSTR (-3.55%) is better than 65.58% 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
In the last couple of years the Profit Margin of MSTR has grown nicely.
In the last couple of years the Operating Margin of MSTR has declined.
MSTR has a Gross Margin of 77.12%. This is in the better half of the industry: MSTR outperforms 73.91% of its industry peers.
In the last couple of years the Gross Margin of MSTR has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for MSTR so they could not be analyzed.
| 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.
MSTR has more shares outstanding than it did 1 year ago.
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.
2.2 Solvency
MSTR has an Altman-Z score of 3.68. This indicates that MSTR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.68, MSTR is in the better half of the industry, outperforming 60.87% 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.
With a Debt to Equity ratio value of 1.48, MSTR is not doing good in the industry: 80.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.68 |
ROIC/WACCN/A
WACC9.6%
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.
MSTR has a worse Current ratio (0.78) than 86.23% of its industry peers.
MSTR has a Quick 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.
Looking at the Quick ratio, with a value of 0.78, MSTR is doing worse than 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.43% over the past year.
MSTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 77.06% yearly.
The Revenue has decreased by -2.46% in the past 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
MSTR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -46.83% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
MSTR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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 61.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.20. MSTR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1339.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MSTR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6622.15 |
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)
After market: 1585.51 +1.01 (+0.06%)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)
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Div Incr Years
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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 5Y