MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis
Europe - BIT:1MSFT - US5949181045 - Common Stock
448.85 EUR
-6.15 (-1.35%)
1MSFT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 103 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. These ratings would make 1MSFT suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1MSFT was profitable.
1MSFT had a positive operating cash flow in the past year.
1MSFT had positive earnings in each of the past 5 years.
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 16.49%, 1MSFT belongs to the best of the industry, outperforming 90.99% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.90%, 1MSFT belongs to the top of the industry, outperforming 85.59% of the companies in the same industry.
The Return On Invested Capital of 1MSFT (22.25%) is better than 90.99% 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 12.76%.
| 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
1MSFT has a Profit Margin of 35.71%. This is amongst the best in the industry. 1MSFT outperforms 92.79% of its industry peers.
In the last couple of years the Profit Margin of 1MSFT has grown nicely.
The Operating Margin of 1MSFT (46.27%) is better than 95.50% of its industry peers.
1MSFT's Operating Margin has improved in the last couple of years.
1MSFT has a Gross Margin of 68.76%. This is comparable to the rest of the industry: 1MSFT outperforms 45.05% 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 | 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
1MSFT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1MSFT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1MSFT has less shares outstanding
The debt/assets ratio for 1MSFT has been reduced compared to a year ago.
2.2 Solvency
1MSFT has an Altman-Z score of 10.29. This indicates that 1MSFT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.29, 1MSFT belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
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.
The Debt to FCF ratio of 1MSFT (1.25) is better than 75.68% of its industry peers.
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 | 10.29 |
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.
1MSFT has a Current ratio of 1.40. This is comparable to the rest of the industry: 1MSFT outperforms 53.15% of its industry peers.
1MSFT has a Quick Ratio of 1.39. This is a normal value and indicates that 1MSFT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1MSFT (1.39) is comparable to the rest of the 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 | 1.4 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
1MSFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.39%, which is quite good.
1MSFT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.86% yearly.
Looking at the last year, 1MSFT shows a quite strong growth in Revenue. The Revenue has grown by 15.59% in the last year.
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)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
The Earnings Per Share is expected to grow by 15.23% on average over the next years. This is quite good.
1MSFT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.67% yearly.
EPS Next Y15.86%
EPS Next 2Y16.45%
EPS Next 3Y17.21%
EPS Next 5Y15.23%
Revenue Next Year15.46%
Revenue Next 2Y14.93%
Revenue Next 3Y15.01%
Revenue Next 5Y12.67%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 35.85, 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 63.06% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, 1MSFT is valued a bit more expensive.
A Price/Forward Earnings ratio of 28.04 indicates a quite expensive valuation of 1MSFT.
The rest of the industry has a similar Price/Forward Earnings ratio as 1MSFT.
When comparing the Price/Forward Earnings ratio of 1MSFT to the average of the S&P500 Index (22.55), we can say 1MSFT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.85 | ||
| Fwd PE | 28.04 |
4.2 Price Multiples
1MSFT's Enterprise Value to EBITDA ratio is in line with the industry average.
1MSFT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.41 | ||
| EV/EBITDA | 21.49 |
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.
A more expensive valuation may be justified as 1MSFT's earnings are expected to grow with 17.21% in the coming years.
PEG (NY)2.26
PEG (5Y)1.9
EPS Next 2Y16.45%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, 1MSFT is not a good candidate for dividend investing.
1MSFT's Dividend Yield is a higher than the industry average which is at 2.15.
With a Dividend Yield of 0.69, 1MSFT pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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
1MSFT pays out 23.52% 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.
DP23.52%
EPS Next 2Y16.45%
EPS Next 3Y17.21%
BIT:1MSFT (10/31/2025, 7:00:00 PM)
448.85
-6.15 (-1.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners74.31%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3336.38B
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts85.71
Price Target535.83 (19.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend2.8
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)-0.17%
PT rev (3m)16.74%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)1.97%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)2.66%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.85 | ||
| Fwd PE | 28.04 | ||
| P/S | 13.12 | ||
| P/FCF | 49.41 | ||
| P/OCF | 26.22 | ||
| P/B | 10.62 | ||
| P/tB | 17.34 | ||
| EV/EBITDA | 21.49 |
EPS(TTM)12.52
EY2.79%
EPS(NY)16.01
Fwd EY3.57%
FCF(TTM)9.08
FCFY2.02%
OCF(TTM)17.12
OCFY3.81%
SpS34.21
BVpS42.28
TBVpS25.89
PEG (NY)2.26
PEG (5Y)1.9
Graham Number109.13
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 | 10.29 |
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 Y15.86%
EPS Next 2Y16.45%
EPS Next 3Y17.21%
EPS Next 5Y15.23%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year15.46%
Revenue Next 2Y14.93%
Revenue Next 3Y15.01%
Revenue Next 5Y12.67%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year51.87%
EBIT Next 3Y27.27%
EBIT Next 5Y25.57%
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%.