Is MICROSOFT CORP (NASDAQ:MSFT) suited for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if MICROSOFT CORP (NASDAQ:MSFT) is suited for quality investing. Investors should of course do their own research, but we spotted MICROSOFT CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NASDAQ:MSFT.

• MICROSOFT CORP has shown strong performance in revenue growth over the past 5 years, with a 13.94% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 63.26%, MICROSOFT CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a favorable Debt/Free Cash Flow Ratio of 1.42, MICROSOFT CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• MICROSOFT CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 92.6%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• MICROSOFT CORP has experienced impressive EBIT growth over the past 5 years, with 20.67% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• The EBIT 5-year growth of MICROSOFT CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of NASDAQ:MSFT?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to MSFT. MSFT was compared to 279 industry peers in the Software industry. MSFT gets an excellent profitability rating and is at the same time showing great financial health properties. MSFT has a decent growth rate and is not valued too expensively. Finally MSFT also has an excellent dividend rating. These ratings could make MSFT a good candidate for dividend and quality investing.

Our latest full fundamental report of MSFT contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.