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Why Quality-Oriented Investors Should Consider NASDAQ:MSFT.

By Mill Chart

Last update: Jul 11, 2024

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.

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Some of the quality metrics of NASDAQ:MSFT highlighted

  • MICROSOFT CORP has demonstrated significant revenue growth over the past 5 years, with a 13.94% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 56.1%, 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 1.25, 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.
  • With a favorable Profit Quality (5-year) ratio of 92.6%, MICROSOFT CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • The 5-year EBIT growth of MICROSOFT CORP has been remarkable, with 20.67% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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.

Fundamental analysis of NASDAQ:MSFT

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, MSFT scores 7 out of 10 in our fundamental rating. MSFT was compared to 276 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 shows excellent growth, but is valued quite expensive already. Finally MSFT also has an excellent dividend rating. This makes MSFT very considerable for dividend and growth and quality investing!

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.