Why MICROSOFT CORP (NASDAQ:MSFT) should be investigated by quality investors.

In this article we will dive into MICROSOFT CORP (NASDAQ:MSFT) as a possible candidate for quality investing. Investors should always do their own research, but we noticed MICROSOFT CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

• The 5-year revenue growth of MICROSOFT CORP has been remarkable, with 13.94% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• 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.
• The Debt/Free Cash Flow Ratio of MICROSOFT CORP stands at 1.4, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• 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.
• MICROSOFT CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental analysis of NASDAQ:MSFT

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, MSFT scores 7 out of 10 in our fundamental rating. MSFT was compared to 278 industry peers in the Software industry. Both the health and profitability get an excellent rating, making MSFT a very profitable company, without any liquidiy or solvency issues. MSFT is not overvalued while it is showing excellent growth. This is an interesting combination. Finally MSFT also has an excellent dividend rating. This makes MSFT very considerable for dividend and growth and quality investing!

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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.