MICROSOFT CORP (MSF.DE) Fundamental Analysis & Valuation

FRA:MSF • US5949181045

Current stock price

322.8 EUR
-7.65 (-2.32%)
Last:

This MSF.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. MSF.DE Profitability Analysis

1.1 Basic Checks

  • In the past year MSF was profitable.
  • In the past year MSF had a positive cash flow from operations.
  • Each year in the past 5 years MSF has been profitable.
  • Each year in the past 5 years MSF had a positive operating cash flow.
MSF.DE Yearly Net Income VS EBIT VS OCF VS FCFMSF.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

1.2 Ratios

  • MSF has a Return On Assets of 17.93%. This is amongst the best in the industry. MSF outperforms 89.81% of its industry peers.
  • Looking at the Return On Equity, with a value of 30.51%, MSF belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 21.86%, MSF belongs to the best of the industry, outperforming 93.52% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for MSF is significantly above the industry average of 13.30%.
Industry RankSector 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%
MSF.DE Yearly ROA, ROE, ROICMSF.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • MSF has a better Profit Margin (39.04%) than 98.15% of its industry peers.
  • MSF's Profit Margin has improved in the last couple of years.
  • The Operating Margin of MSF (46.67%) is better than 97.22% of its industry peers.
  • MSF's Operating Margin has improved in the last couple of years.
  • MSF has a Gross Margin (68.59%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of MSF has remained more or less at the same level.
Industry RankSector 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%
MSF.DE Yearly Profit, Operating, Gross MarginsMSF.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. MSF.DE Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSF is creating value.
  • MSF has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, MSF has less shares outstanding
  • MSF has a better debt/assets ratio than last year.
MSF.DE Yearly Shares OutstandingMSF.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
MSF.DE Yearly Total Debt VS Total AssetsMSF.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B

2.2 Solvency

  • An Altman-Z score of 8.07 indicates that MSF is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of MSF (8.07) is better than 89.81% of its industry peers.
  • The Debt to FCF ratio of MSF is 1.30, which is an excellent value as it means it would take MSF, only 1.30 years of fcf income to pay off all of its debts.
  • MSF has a Debt to FCF ratio of 1.30. This is in the better half of the industry: MSF outperforms 71.30% of its industry peers.
  • A Debt/Equity ratio of 0.23 indicates that MSF is not too dependend on debt financing.
  • MSF has a Debt to Equity ratio (0.23) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Altman-Z 8.07
ROIC/WACC2.01
WACC10.86%
MSF.DE Yearly LT Debt VS Equity VS FCFMSF.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B

2.3 Liquidity

  • MSF has a Current Ratio of 1.39. This is a normal value and indicates that MSF is financially healthy and should not expect problems in meeting its short term obligations.
  • MSF has a Current ratio of 1.39. This is comparable to the rest of the industry: MSF outperforms 49.07% of its industry peers.
  • A Quick Ratio of 1.38 indicates that MSF should not have too much problems paying its short term obligations.
  • MSF's Quick ratio of 1.38 is in line compared to the rest of the industry. MSF outperforms 52.78% of its industry peers.
  • The current and quick ratio evaluation for MSF 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 RankSector Rank
Current Ratio 1.39
Quick Ratio 1.38
MSF.DE Yearly Current Assets VS Current LiabilitesMSF.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. MSF.DE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.83% over the past year.
  • Measured over the past years, MSF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.86% on average per year.
  • MSF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.67%.
  • MSF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.52% yearly.
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

  • Based on estimates for the next years, MSF will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.94% on average per year.
  • MSF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.18% yearly.
EPS Next Y24.05%
EPS Next 2Y19.2%
EPS Next 3Y18.61%
EPS Next 5Y18.94%
Revenue Next Year17.51%
Revenue Next 2Y16.53%
Revenue Next 3Y16.54%
Revenue Next 5Y16.18%

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.
MSF.DE Yearly Revenue VS EstimatesMSF.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 200B 400B 600B
MSF.DE Yearly EPS VS EstimatesMSF.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40

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4

4. MSF.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 24.34, which indicates a rather expensive current valuation of MSF.
  • Based on the Price/Earnings ratio, MSF is valued a bit cheaper than the industry average as 67.59% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of MSF to the average of the S&P500 Index (25.54), we can say MSF is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 19.31, the valuation of MSF can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MSF indicates a somewhat cheap valuation: MSF is cheaper than 62.96% of the companies listed in the same industry.
  • MSF is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.34
Fwd PE 19.31
MSF.DE Price Earnings VS Forward Price EarningsMSF.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as MSF.
  • MSF's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 35.91
EV/EBITDA 15.52
MSF.DE Per share dataMSF.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • MSF has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as MSF's earnings are expected to grow with 18.61% in the coming years.
PEG (NY)1.01
PEG (5Y)1.29
EPS Next 2Y19.2%
EPS Next 3Y18.61%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. MSF.DE Dividend Analysis

5.1 Amount

  • MSF has a yearly dividend return of 0.94%, which is pretty low.
  • In the last 3 months the price of MSF has falen by -20.20%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 0.91, MSF pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, MSF's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.94%

5.2 History

  • The dividend of MSF is nicely growing with an annual growth rate of 10.24%!
Dividend Growth(5Y)10.24%
Div Incr Years6
Div Non Decr Years6
MSF.DE Yearly Dividends per shareMSF.DE Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • MSF pays out 21.19% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of MSF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.19%
EPS Next 2Y19.2%
EPS Next 3Y18.61%
MSF.DE Yearly Income VS Free CF VS DividendMSF.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B
MSF.DE Dividend Payout.MSF.DE Dividend Payout, showing the Payout Ratio.MSF.DE Dividend Payout.PayoutRetained Earnings

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MSF.DE Fundamentals: All Metrics, Ratios and Statistics

MICROSOFT CORP

FRA:MSF (3/24/2026, 5:29:48 PM)

322.8

-7.65 (-2.32%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28
Earnings (Next)04-28
Inst Owners75.67%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.40T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.45
Price Target518.8 (60.72%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.94%
Yearly Dividend2.8
Dividend Growth(5Y)10.24%
DP21.19%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.54%
Min EPS beat(2)2.62%
Max EPS beat(2)10.46%
EPS beat(4)4
Avg EPS beat(4)6.15%
Min EPS beat(4)2.62%
Max EPS beat(4)10.46%
EPS beat(8)7
Avg EPS beat(8)3.96%
EPS beat(12)11
Avg EPS beat(12)4.71%
EPS beat(16)12
Avg EPS beat(16)3.16%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)1.09%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)1.54%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)0.13%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)-0.64%
PT rev (3m)-4.23%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.4%
Valuation
Industry RankSector Rank
PE 24.34
Fwd PE 19.31
P/S 9.1
P/FCF 35.91
P/OCF 17.32
P/B 7.11
P/tB 11.08
EV/EBITDA 15.52
EPS(TTM)13.26
EY4.11%
EPS(NY)16.71
Fwd EY5.18%
FCF(TTM)8.99
FCFY2.79%
OCF(TTM)18.64
OCFY5.77%
SpS35.47
BVpS45.39
TBVpS29.15
PEG (NY)1.01
PEG (5Y)1.29
Graham Number116.38
Profitability
Industry RankSector Rank
ROA 17.93%
ROE 30.51%
ROCE 26.63%
ROIC 21.86%
ROICexc 26.24%
ROICexgc 38.24%
OM 46.67%
PM (TTM) 39.04%
GM 68.59%
FCFM 25.34%
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 RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.3
Debt/EBITDA 0.51
Cap/Depr 222.84%
Cap/Sales 27.2%
Interest Coverage 250
Cash Conversion 89.25%
Profit Quality 64.91%
Current Ratio 1.39
Quick Ratio 1.38
Altman-Z 8.07
F-Score6
WACC10.86%
ROIC/WACC2.01
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)23.83%
EPS 3Y14.03%
EPS 5Y18.86%
EPS Q2Q%28.17%
EPS Next Y24.05%
EPS Next 2Y19.2%
EPS Next 3Y18.61%
EPS Next 5Y18.94%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.51%
Revenue Next 2Y16.53%
Revenue Next 3Y16.54%
Revenue Next 5Y16.18%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year55.61%
EBIT Next 3Y28.93%
EBIT Next 5Y23.22%
FCF growth 1Y14.78%
FCF growth 3Y3.2%
FCF growth 5Y9.62%
OCF growth 1Y56.37%
OCF growth 3Y15.21%
OCF growth 5Y17.55%

MICROSOFT CORP / MSF.DE Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for MICROSOFT CORP?

ChartMill assigns a fundamental rating of 7 / 10 to MSF.DE.


What is the valuation status for MSF stock?

ChartMill assigns a valuation rating of 4 / 10 to MICROSOFT CORP (MSF.DE). This can be considered as Fairly Valued.


Can you provide the profitability details for MICROSOFT CORP?

MICROSOFT CORP (MSF.DE) has a profitability rating of 8 / 10.


What is the valuation of MICROSOFT CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for MICROSOFT CORP (MSF.DE) is 24.34 and the Price/Book (PB) ratio is 7.11.


Can you provide the dividend sustainability for MSF stock?

The dividend rating of MICROSOFT CORP (MSF.DE) is 5 / 10 and the dividend payout ratio is 21.19%.