MICROSOFT CORP (1MSFT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MSFT - US5949181045 - Common Stock
420.75 EUR
+0.9 (+0.21%)
Taking everything into account, 1MSFT scores 7 out of 10 in our fundamental rating. 1MSFT was compared to 114 industry peers in the Software industry. 1MSFT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1MSFT has a decent growth rate and is not valued too expensively. These ratings could make 1MSFT a good candidate 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
The Return On Assets of 1MSFT (16.49%) is better than 90.35% of its industry peers.
1MSFT has a better Return On Equity (28.90%) than 87.72% of its industry peers.
1MSFT's Return On Invested Capital of 22.25% is amongst the best of the industry. 1MSFT outperforms 92.11% of its industry peers.
1MSFT had an Average Return On Invested Capital over the past 3 years of 22.94%. This is significantly above the industry average of 13.10%.
| 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 92.11% 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 94.74% 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 45.61% of its industry peers.
1MSFT's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, 1MSFT has less shares outstanding
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 92.11% 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.
With a decent Debt to FCF ratio value of 1.25, 1MSFT is doing good in the industry, outperforming 76.32% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.78 |
ROIC/WACC2.04
WACC10.89%
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.
Looking at the Current ratio, with a value of 1.40, 1MSFT is in line with its industry, outperforming 51.75% 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.
1MSFT has a Quick ratio of 1.39. This is comparable to the rest of the industry: 1MSFT outperforms 55.26% of its industry peers.
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
The Earnings Per Share has grown by an nice 19.39% over the past year.
Measured over the past years, 1MSFT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.86% on average per year.
The Revenue has grown by 15.59% in the past year. This is quite good.
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
Based on estimates for the next years, 1MSFT will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.83% on average per year.
The Revenue is expected to grow by 15.04% on average over the next years. This is quite good.
EPS Next Y16.96%
EPS Next 2Y17.68%
EPS Next 3Y18.52%
EPS Next 5Y18.83%
Revenue Next Year16.4%
Revenue Next 2Y15.53%
Revenue Next 3Y15.94%
Revenue Next 5Y15.04%
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.
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 33.69, 1MSFT can be considered very expensive at the moment.
63.16% of the companies in the same industry are more expensive than 1MSFT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1MSFT to the average of the S&P500 Index (26.15), we can say 1MSFT is valued slightly more expensively.
The Price/Forward Earnings ratio is 25.81, which means the current valuation is very expensive for 1MSFT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MSFT indicates a somewhat cheap valuation: 1MSFT is cheaper than 62.28% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. 1MSFT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.69 | ||
| Fwd PE | 25.81 |
4.2 Price Multiples
1MSFT's Enterprise Value to EBITDA ratio is in line with the industry average.
1MSFT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.44 | ||
| EV/EBITDA | 20.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1MSFT has an outstanding profitability rating, which may justify a higher PE ratio.
1MSFT's earnings are expected to grow with 18.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.99
PEG (5Y)1.79
EPS Next 2Y17.68%
EPS Next 3Y18.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, 1MSFT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.24, 1MSFT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.76, 1MSFT pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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 23.52% of its income as dividend. This is a sustainable payout ratio.
1MSFT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.52%
EPS Next 2Y17.68%
EPS Next 3Y18.52%
BIT:1MSFT (11/27/2025, 7:00:00 PM)
420.75
+0.9 (+0.21%)
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 Cap3.13T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86.29
Price Target544.6 (29.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend2.81
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)3.7%
PT rev (3m)3.02%
EPS NQ rev (1m)4.33%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)0.96%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.69 | ||
| Fwd PE | 25.81 | ||
| 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)12.49
EY2.97%
EPS(NY)16.3
Fwd EY3.87%
FCF(TTM)9.06
FCFY2.15%
OCF(TTM)17.08
OCFY4.06%
SpS34.12
BVpS42.16
TBVpS25.82
PEG (NY)1.99
PEG (5Y)1.79
Graham Number108.85
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
WACC10.89%
ROIC/WACC2.04
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 Y16.96%
EPS Next 2Y17.68%
EPS Next 3Y18.52%
EPS Next 5Y18.83%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year16.4%
Revenue Next 2Y15.53%
Revenue Next 3Y15.94%
Revenue Next 5Y15.04%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year51.87%
EBIT Next 3Y30.06%
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 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.
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%.