MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1MSFT • US5949181045
362.75 EUR
+7.7 (+2.17%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 7 out of 10 to 1MSFT. 1MSFT was compared to 115 industry peers in the Software industry. 1MSFT gets an excellent profitability rating and is at the same time showing great financial health properties. 1MSFT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes 1MSFT very considerable for growth and 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
- 1MSFT has a better Return On Assets (17.93%) than 90.43% of its industry peers.
- With an excellent Return On Equity value of 30.51%, 1MSFT belongs to the best of the industry, outperforming 85.22% of the companies in the same industry.
- 1MSFT has a better Return On Invested Capital (21.86%) than 93.04% 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 13.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.93% | ||
| ROE | 30.51% | ||
| ROIC | 21.86% |
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 39.04%, 1MSFT belongs to the top of the industry, outperforming 94.78% of the companies in the same industry.
- 1MSFT's Profit Margin has improved in the last couple of years.
- 1MSFT has a better Operating Margin (46.67%) than 97.39% of its industry peers.
- In the last couple of years the Operating Margin of 1MSFT has grown nicely.
- The Gross Margin of 1MSFT (68.59%) is comparable to the rest of the industry.
- 1MSFT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.67% | ||
| PM (TTM) | 39.04% | ||
| GM | 68.59% |
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.
- 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
- An Altman-Z score of 8.87 indicates that 1MSFT is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.87, 1MSFT belongs to the best of the industry, outperforming 86.09% of the companies in the same industry.
- 1MSFT has a debt to FCF ratio of 1.30. This is a very positive value and a sign of high solvency as it would only need 1.30 years to pay back of all of its debts.
- 1MSFT has a better Debt to FCF ratio (1.30) than 71.30% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that 1MSFT is not too dependend on debt financing.
- The Debt to Equity ratio of 1MSFT (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 8.87 |
ROIC/WACC1.99
WACC10.96%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that 1MSFT should not have too much problems paying its short term obligations.
- 1MSFT has a Current ratio of 1.39. This is comparable to the rest of the industry: 1MSFT outperforms 46.96% of its industry peers.
- A Quick Ratio of 1.38 indicates that 1MSFT should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.38, 1MSFT perfoms like the industry average, outperforming 49.57% 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 | 1.39 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
- 1MSFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.83%, which is quite impressive.
- 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 16.67% in the last year.
- The Revenue has been growing by 14.52% on average over the past years. This is quite good.
EPS 1Y (TTM)23.83%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%28.17%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
3.2 Future
- The Earnings Per Share is expected to grow by 18.83% on average over the next years. This is quite good.
- 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 Y22.79%
EPS Next 2Y18.47%
EPS Next 3Y18.31%
EPS Next 5Y18.83%
Revenue Next Year17.06%
Revenue Next 2Y15.95%
Revenue Next 3Y16.12%
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.
- 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
- Based on the Price/Earnings ratio of 28.12, the valuation of 1MSFT can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of 1MSFT indicates a somewhat cheap valuation: 1MSFT is cheaper than 66.09% of the companies listed in the same industry.
- 1MSFT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 22.59, which indicates a rather expensive current valuation of 1MSFT.
- Based on the Price/Forward Earnings ratio, 1MSFT is valued a bit cheaper than 68.70% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1MSFT to the average of the S&P500 Index (25.57), we can say 1MSFT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.12 | ||
| Fwd PE | 22.59 |
4.2 Price Multiples
- 1MSFT's Enterprise Value to EBITDA ratio is in line with 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 | 41.51 | ||
| EV/EBITDA | 17.57 |
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.
- A more expensive valuation may be justified as 1MSFT's earnings are expected to grow with 18.31% in the coming years.
PEG (NY)1.23
PEG (5Y)1.49
EPS Next 2Y18.47%
EPS Next 3Y18.31%
5. Dividend
5.1 Amount
- 1MSFT has a yearly dividend return of 0.84%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.68, 1MSFT pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.84, 1MSFT pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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 21.19% 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.
DP21.19%
EPS Next 2Y18.47%
EPS Next 3Y18.31%
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.
Can you provide the valuation status for MICROSOFT CORP?
ChartMill assigns a valuation rating of 4 / 10 to MICROSOFT CORP (1MSFT.MI). This can be considered as Fairly Valued.
What is the profitability of 1MSFT stock?
MICROSOFT CORP (1MSFT.MI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for 1MSFT stock?
The Price/Earnings (PE) ratio for MICROSOFT CORP (1MSFT.MI) is 28.12 and the Price/Book (PB) ratio is 8.22.
Can you provide the dividend sustainability for 1MSFT stock?
The dividend rating of MICROSOFT CORP (1MSFT.MI) is 5 / 10 and the dividend payout ratio is 21.19%.