MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis
BIT:1MSFT - US5949181045 - Common Stock
426.25 EUR
+3.2 (+0.76%)
Taking everything into account, 1MSFT scores 7 out of 10 in our fundamental rating. 1MSFT was compared to 101 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. While showing a medium growth rate, 1MSFT is valued expensive at the moment. With these ratings, 1MSFT could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year 1MSFT was profitable.
In the past year 1MSFT had a positive cash flow from operations.
In the past 5 years 1MSFT has always been profitable.
In the past 5 years 1MSFT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 16.45%, 1MSFT belongs to the best of the industry, outperforming 92.08% of the companies in the same industry.
With an excellent Return On Equity value of 29.65%, 1MSFT belongs to the best of the industry, outperforming 87.13% of the companies in the same industry.
The Return On Invested Capital of 1MSFT (22.08%) is better than 90.10% 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 12.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.45% | ||
| ROE | 29.65% | ||
| ROIC | 22.08% |
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
The Profit Margin of 1MSFT (36.15%) is better than 93.07% of its industry peers.
1MSFT's Profit Margin has improved in the last couple of years.
1MSFT has a better Operating Margin (45.62%) than 95.05% of its industry peers.
1MSFT's Operating Margin has improved in the last couple of years.
1MSFT has a Gross Margin of 68.82%. This is comparable to the rest of the industry: 1MSFT outperforms 45.54% of its industry peers.
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 | 45.62% | ||
| PM (TTM) | 36.15% | ||
| GM | 68.82% |
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.
The debt/assets ratio for 1MSFT has been reduced compared to a year ago.
2.2 Solvency
1MSFT has an Altman-Z score of 9.87. This indicates that 1MSFT is financially healthy and has little risk of bankruptcy at the moment.
1MSFT has a better Altman-Z score (9.87) than 89.11% of its industry peers.
The Debt to FCF ratio of 1MSFT is 1.25, which is an excellent value as it means it would take 1MSFT, only 1.25 years of fcf income to pay off all of its debts.
1MSFT's Debt to FCF ratio of 1.25 is fine compared to the rest of the industry. 1MSFT outperforms 74.26% of its industry peers.
1MSFT has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.24, 1MSFT perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.87 |
ROIC/WACC1.99
WACC11.1%
2.3 Liquidity
A Current Ratio of 1.35 indicates that 1MSFT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.35, 1MSFT perfoms like the industry average, outperforming 48.51% of the companies in the same industry.
1MSFT has a Quick Ratio of 1.35. 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 Quick ratio value of 1.35, 1MSFT perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
1MSFT does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.50% 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.
1MSFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.93%.
1MSFT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.52% yearly.
EPS 1Y (TTM)15.5%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%23.73%
Revenue 1Y (TTM)14.93%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.1%
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 15.23% yearly.
1MSFT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.89% yearly.
EPS Next Y15.95%
EPS Next 2Y16.49%
EPS Next 3Y17.54%
EPS Next 5Y15.23%
Revenue Next Year15.5%
Revenue Next 2Y14.92%
Revenue Next 3Y15.04%
Revenue Next 5Y11.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 36.65, 1MSFT can be considered very expensive at the moment.
1MSFT's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MSFT is cheaper than 67.33% of the companies in the same industry.
1MSFT is valuated rather expensively when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
1MSFT is valuated quite expensively with a Price/Forward Earnings ratio of 31.61.
1MSFT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.66. 1MSFT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.65 | ||
| Fwd PE | 31.61 |
4.2 Price Multiples
1MSFT's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1MSFT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.89 | ||
| EV/EBITDA | 22.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1MSFT may justify a higher PE ratio.
1MSFT's earnings are expected to grow with 17.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.3
PEG (5Y)1.94
EPS Next 2Y16.49%
EPS Next 3Y17.54%
5. Dividend
5.1 Amount
1MSFT has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 2.06, 1MSFT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.65, 1MSFT pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
On average, the dividend of 1MSFT grows each year by 10.24%, which is quite nice.
Dividend Growth(5Y)10.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MSFT pays out 23.65% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1MSFT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.65%
EPS Next 2Y16.49%
EPS Next 3Y17.54%
BIT:1MSFT (9/8/2025, 7:00:00 PM)
426.25
+3.2 (+0.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners74.49%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3168.39B
Analysts85.71
Price Target528.62 (24.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend2.77
Dividend Growth(5Y)10.24%
DP23.65%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.77%
Min EPS beat(2)5.34%
Max EPS beat(2)6.2%
EPS beat(4)4
Avg EPS beat(4)4.44%
Min EPS beat(4)1.79%
Max EPS beat(4)6.2%
EPS beat(8)7
Avg EPS beat(8)4.04%
EPS beat(12)10
Avg EPS beat(12)3.55%
EPS beat(16)12
Avg EPS beat(16)3.12%
Revenue beat(2)2
Avg Revenue beat(2)0.97%
Min Revenue beat(2)0.4%
Max Revenue beat(2)1.54%
Revenue beat(4)2
Avg Revenue beat(4)0.21%
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)4
Avg Revenue beat(12)-0.18%
Revenue beat(16)5
Avg Revenue beat(16)-0.36%
PT rev (1m)15.17%
PT rev (3m)17.21%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)3.37%
EPS NY rev (1m)2.74%
EPS NY rev (3m)2.81%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)1.75%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.65 | ||
| Fwd PE | 31.61 | ||
| P/S | 13.19 | ||
| P/FCF | 51.89 | ||
| P/OCF | 27.29 | ||
| P/B | 10.82 | ||
| P/tB | 18.45 | ||
| EV/EBITDA | 22.41 |
EPS(TTM)11.63
EY2.73%
EPS(NY)13.48
Fwd EY3.16%
FCF(TTM)8.21
FCFY1.93%
OCF(TTM)15.62
OCFY3.66%
SpS32.32
BVpS39.4
TBVpS23.1
PEG (NY)2.3
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.45% | ||
| ROE | 29.65% | ||
| ROCE | 26.9% | ||
| ROIC | 22.08% | ||
| ROICexc | 27.53% | ||
| ROICexgc | 43.75% | ||
| OM | 45.62% | ||
| PM (TTM) | 36.15% | ||
| GM | 68.82% | ||
| FCFM | 25.42% |
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%
ROICexcg growth 3Y-18.02%
ROICexcg 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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 189.01% | ||
| Cap/Sales | 22.91% | ||
| Interest Coverage | 80.33 | ||
| Cash Conversion | 83.7% | ||
| Profit Quality | 70.32% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 9.87 |
F-Score5
WACC11.1%
ROIC/WACC1.99
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)15.5%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%23.73%
EPS Next Y15.95%
EPS Next 2Y16.49%
EPS Next 3Y17.54%
EPS Next 5Y15.23%
Revenue 1Y (TTM)14.93%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.1%
Revenue Next Year15.5%
Revenue Next 2Y14.92%
Revenue Next 3Y15.04%
Revenue Next 5Y11.89%
EBIT growth 1Y17.45%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year49.13%
EBIT Next 3Y27.09%
EBIT Next 5Y25.57%
FCF growth 1Y-3.32%
FCF growth 3Y3.2%
FCF growth 5Y9.62%
OCF growth 1Y14.86%
OCF growth 3Y15.21%
OCF growth 5Y17.55%