Why MICROSOFT CORP (NASDAQ:MSFT) qualifies as a quality stock.

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.

Key Considerations for Quality Investors.

• Over the past 5 years, MSFT has experienced impressive revenue growth, with 14.26% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• MSFT exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 45.87% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a Debt/Free Cash Flow Ratio of 1.16, MSFT exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• MSFT demonstrates consistent Profit Quality over the past 5 years, with a strong 89.91%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• MSFT has experienced impressive EBIT growth over the past 5 years, with 20.56% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• The EBIT 5-year growth of MSFT 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 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 284 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 has a decent growth rate and is not valued too expensively. MSFT also has an excellent dividend rating. This makes MSFT very considerable for dividend 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.

Keep in mind

This article should in no way be interpreted as advice. 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.