MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MSFT - US5949181045 - Common Stock
413.6 EUR
+0.5 (+0.12%)
Taking everything into account, 1MSFT scores 7 out of 10 in our fundamental rating. 1MSFT was compared to 116 industry peers in the Software industry. Both the health and profitability get an excellent rating, making 1MSFT a very profitable company, without any liquidiy or solvency issues. 1MSFT is valied quite expensively at the moment, while it does show a decent growth rate. This makes 1MSFT very considerable for quality investing!
1. Profitability
1.1 Basic Checks
1MSFT had positive earnings in the past year.
1MSFT had a positive operating cash flow in the past year.
Each year in the past 5 years 1MSFT has been profitable.
Each year in the past 5 years 1MSFT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 16.49%, 1MSFT belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
The Return On Equity of 1MSFT (28.90%) is better than 87.07% of its industry peers.
1MSFT has a better Return On Invested Capital (22.25%) than 93.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MSFT is significantly above the industry average of 12.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.49% | ||
| ROE | 28.9% | ||
| ROIC | 22.25% |
ROA(3y)17.07%
ROA(5y)17.9%
ROE(3y)32.52%
ROE(5y)36.88%
ROIC(3y)22.94%
ROIC(5y)23.52%
1.3 Margins
Looking at the Profit Margin, with a value of 35.71%, 1MSFT belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
1MSFT's Profit Margin has improved in the last couple of years.
1MSFT has a Operating Margin of 46.27%. This is amongst the best in the industry. 1MSFT outperforms 96.55% of its industry peers.
In the last couple of years the Operating Margin of 1MSFT has grown nicely.
The Gross Margin of 1MSFT (68.76%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1MSFT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.27% | ||
| PM (TTM) | 35.71% | ||
| GM | 68.76% |
OM growth 3Y2.75%
OM growth 5Y4.26%
PM growth 3Y-0.49%
PM growth 5Y3.14%
GM growth 3Y0.21%
GM growth 5Y0.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MSFT is creating value.
The number of shares outstanding for 1MSFT remains at a similar level compared to 1 year ago.
1MSFT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1MSFT has an improved debt to assets ratio.
2.2 Solvency
1MSFT has an Altman-Z score of 9.78. This indicates that 1MSFT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1MSFT (9.78) is better than 88.79% of its industry peers.
1MSFT has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.25, 1MSFT is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that 1MSFT is not too dependend on debt financing.
1MSFT has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.78 |
ROIC/WACC2.03
WACC10.94%
2.3 Liquidity
1MSFT has a Current Ratio of 1.40. This is a normal value and indicates that 1MSFT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.40, 1MSFT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that 1MSFT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.39, 1MSFT perfoms like the industry average, outperforming 53.45% of the companies in the same industry.
The current and quick ratio evaluation for 1MSFT is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.39% over the past year.
1MSFT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.86% yearly.
The Revenue has grown by 15.59% in the past year. This is quite good.
Measured over the past years, 1MSFT shows a quite strong growth in Revenue. The Revenue has been growing by 14.52% on average per year.
EPS 1Y (TTM)19.39%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%25.15%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
3.2 Future
1MSFT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.83% yearly.
Based on estimates for the next years, 1MSFT will show a quite strong growth in Revenue. The Revenue will grow by 15.04% on average per year.
EPS Next Y22.86%
EPS Next 2Y18.41%
EPS Next 3Y18.25%
EPS Next 5Y18.83%
Revenue Next Year17.05%
Revenue Next 2Y15.88%
Revenue Next 3Y16%
Revenue Next 5Y15.04%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.68, which means the current valuation is very expensive for 1MSFT.
Compared to the rest of the industry, the Price/Earnings ratio of 1MSFT indicates a somewhat cheap valuation: 1MSFT is cheaper than 62.07% of the companies listed in the same industry.
1MSFT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.59.
The Price/Forward Earnings ratio is 25.49, which means the current valuation is very expensive for 1MSFT.
The rest of the industry has a similar Price/Forward Earnings ratio as 1MSFT.
1MSFT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.68 | ||
| Fwd PE | 25.49 |
4.2 Price Multiples
1MSFT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MSFT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.44 | ||
| EV/EBITDA | 20.17 |
4.3 Compensation for Growth
1MSFT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1MSFT may justify a higher PE ratio.
1MSFT's earnings are expected to grow with 18.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)1.79
EPS Next 2Y18.41%
EPS Next 3Y18.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, 1MSFT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.66, 1MSFT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, 1MSFT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of 1MSFT is nicely growing with an annual growth rate of 10.24%!
Dividend Growth(5Y)10.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
23.52% of the earnings are spent on dividend by 1MSFT. This is a low number and sustainable payout ratio.
The dividend of 1MSFT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.52%
EPS Next 2Y18.41%
EPS Next 3Y18.25%
BIT:1MSFT (12/23/2025, 7:00:00 PM)
413.6
+0.5 (+0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners75.51%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3.07T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86
Price Target541.78 (30.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend2.77
Dividend Growth(5Y)10.24%
DP23.52%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.33%
Min EPS beat(2)6.2%
Max EPS beat(2)10.46%
EPS beat(4)4
Avg EPS beat(4)5.95%
Min EPS beat(4)1.79%
Max EPS beat(4)10.46%
EPS beat(8)7
Avg EPS beat(8)4.04%
EPS beat(12)10
Avg EPS beat(12)4.42%
EPS beat(16)12
Avg EPS beat(16)3.32%
Revenue beat(2)2
Avg Revenue beat(2)1.31%
Min Revenue beat(2)1.09%
Max Revenue beat(2)1.54%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)1.54%
Revenue beat(8)3
Avg Revenue beat(8)-0.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.01%
Revenue beat(16)5
Avg Revenue beat(16)-0.36%
PT rev (1m)0.81%
PT rev (3m)0.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)5.04%
EPS NY rev (3m)5.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.68 | ||
| Fwd PE | 25.49 | ||
| P/S | 12.33 | ||
| P/FCF | 46.44 | ||
| P/OCF | 24.64 | ||
| P/B | 9.98 | ||
| P/tB | 16.3 | ||
| EV/EBITDA | 20.17 |
EPS(TTM)12.28
EY2.97%
EPS(NY)16.23
Fwd EY3.92%
FCF(TTM)8.91
FCFY2.15%
OCF(TTM)16.78
OCFY4.06%
SpS33.54
BVpS41.44
TBVpS25.38
PEG (NY)1.47
PEG (5Y)1.79
Graham Number107.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.49% | ||
| ROE | 28.9% | ||
| ROCE | 27.11% | ||
| ROIC | 22.25% | ||
| ROICexc | 27.94% | ||
| ROICexgc | 43.14% | ||
| OM | 46.27% | ||
| PM (TTM) | 35.71% | ||
| GM | 68.76% | ||
| FCFM | 26.55% |
ROA(3y)17.07%
ROA(5y)17.9%
ROE(3y)32.52%
ROE(5y)36.88%
ROIC(3y)22.94%
ROIC(5y)23.52%
ROICexc(3y)31.07%
ROICexc(5y)36.94%
ROICexgc(3y)52.63%
ROICexgc(5y)67.5%
ROCE(3y)28.11%
ROCE(5y)28.75%
ROICexgc growth 3Y-18.02%
ROICexgc growth 5Y-15.78%
ROICexc growth 3Y-12.77%
ROICexc growth 5Y-10.15%
OM growth 3Y2.75%
OM growth 5Y4.26%
PM growth 3Y-0.49%
PM growth 5Y3.14%
GM growth 3Y0.21%
GM growth 5Y0.31%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 173.29% | ||
| Cap/Sales | 23.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.66% | ||
| Profit Quality | 74.36% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 9.78 |
F-Score6
WACC10.94%
ROIC/WACC2.03
Cap/Depr(3y)197.12%
Cap/Depr(5y)186.6%
Cap/Sales(3y)18.11%
Cap/Sales(5y)15.73%
Profit Quality(3y)78.85%
Profit Quality(5y)83.54%
High Growth Momentum
Growth
EPS 1Y (TTM)19.39%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%25.15%
EPS Next Y22.86%
EPS Next 2Y18.41%
EPS Next 3Y18.25%
EPS Next 5Y18.83%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year17.05%
Revenue Next 2Y15.88%
Revenue Next 3Y16%
Revenue Next 5Y15.04%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year58.69%
EBIT Next 3Y29.61%
EBIT Next 5Y23.22%
FCF growth 1Y23.39%
FCF growth 3Y3.2%
FCF growth 5Y9.62%
OCF growth 1Y54.83%
OCF growth 3Y15.21%
OCF growth 5Y17.55%
MICROSOFT CORP / 1MSFT.MI FAQ
What is the ChartMill fundamental rating of MICROSOFT CORP (1MSFT.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1MSFT.MI.
What is the valuation status for 1MSFT stock?
ChartMill assigns a valuation rating of 3 / 10 to MICROSOFT CORP (1MSFT.MI). This can be considered as Overvalued.
What is the profitability of 1MSFT stock?
MICROSOFT CORP (1MSFT.MI) has a profitability rating of 8 / 10.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (1MSFT.MI) is 8 / 10.
Is the dividend of MICROSOFT CORP sustainable?
The dividend rating of MICROSOFT CORP (1MSFT.MI) is 5 / 10 and the dividend payout ratio is 23.52%.