Why Quality-Oriented Investors Should Consider NASDAQ:MSFT.

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.

Exploring Why NASDAQ:MSFT Holds Appeal for Quality Investors.

• 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 notable ROIC excluding cash and goodwill at 57.52%, MICROSOFT CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• MICROSOFT CORP maintains a healthy Debt/Free Cash Flow Ratio of 1.4, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• MICROSOFT CORP exhibits impressive Profit Quality (5-year) with a 92.6% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• 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.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, MICROSOFT CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

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

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall MSFT gets a fundamental rating of 7 out of 10. We evaluated MSFT against 279 industry peers in the Software industry. MSFT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MSFT is not priced too expensively while it is growing strongly. Keep and eye on this one! MSFT also has an excellent dividend rating. With these ratings, MSFT could be worth investigating further for dividend and growth and quality investing!.

Check the latest full fundamental report of MSFT for a complete fundamental analysis.

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.