MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - FRA:MSF - US5949181045 - Common Stock
438 EUR
+5 (+1.15%)
We assign a fundamental rating of 7 out of 10 to MSF. MSF was compared to 111 industry peers in the Software industry. MSF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MSF is not valued too expensively and it also shows a decent growth rate. These ratings could make MSF a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
MSF had positive earnings in the past year.
MSF had a positive operating cash flow in the past year.
MSF had positive earnings in each of the past 5 years.
In the past 5 years MSF always reported a positive cash flow from operatings.
1.2 Ratios
MSF has a Return On Assets of 16.49%. This is amongst the best in the industry. MSF outperforms 90.09% of its industry peers.
Looking at the Return On Equity, with a value of 28.90%, MSF belongs to the top of the industry, outperforming 85.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 22.25%, MSF belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
MSF had an Average Return On Invested Capital over the past 3 years of 22.94%. This is significantly above the industry average of 12.66%.
| 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
With an excellent Profit Margin value of 35.71%, MSF belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
MSF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 46.27%, MSF belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
MSF's Operating Margin has improved in the last couple of years.
MSF has a Gross Margin (68.76%) which is comparable to the rest of the industry.
MSF'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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MSF is creating value.
Compared to 1 year ago, MSF has about the same amount of shares outstanding.
Compared to 5 years ago, MSF has less shares outstanding
The debt/assets ratio for MSF has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.01 indicates that MSF is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.01, MSF belongs to the top of the industry, outperforming 90.99% of the companies in the same industry.
MSF 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.
MSF has a Debt to FCF ratio of 1.25. This is in the better half of the industry: MSF outperforms 76.58% of its industry peers.
MSF has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
MSF's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. MSF outperforms 55.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 10.01 |
ROIC/WACC2.05
WACC10.87%
2.3 Liquidity
MSF has a Current Ratio of 1.40. 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 (1.40) which is comparable to the rest of the industry.
A Quick Ratio of 1.39 indicates that MSF should not have too much problems paying its short term obligations.
MSF has a Quick ratio (1.39) which is comparable to the rest of the industry.
MSF 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
MSF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.39%, which is quite good.
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 15.59%.
The Revenue has been growing by 14.52% on average over the past years. This is quite good.
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 18.83% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.31% on average over the next years. This is quite good.
EPS Next Y16.96%
EPS Next 2Y17.68%
EPS Next 3Y18.5%
EPS Next 5Y18.83%
Revenue Next Year16.4%
Revenue Next 2Y15.53%
Revenue Next 3Y15.9%
Revenue Next 5Y14.31%
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
MSF is valuated quite expensively with a Price/Earnings ratio of 35.04.
Based on the Price/Earnings ratio, MSF is valued a bit cheaper than 60.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of MSF to the average of the S&P500 Index (26.34), we can say MSF is valued slightly more expensively.
The Price/Forward Earnings ratio is 26.84, which means the current valuation is very expensive for MSF.
Based on the Price/Forward Earnings ratio, MSF is valued a bit cheaper than 61.26% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, MSF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.04 | ||
| Fwd PE | 26.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSF is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.31 | ||
| EV/EBITDA | 20.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSF does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MSF may justify a higher PE ratio.
MSF's earnings are expected to grow with 18.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.07
PEG (5Y)1.86
EPS Next 2Y17.68%
EPS Next 3Y18.5%
5. Dividend
5.1 Amount
MSF has a yearly dividend return of 0.73%, which is pretty low.
MSF's Dividend Yield is a higher than the industry average which is at 2.24.
Compared to an average S&P500 Dividend Yield of 2.36, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
On average, the dividend of MSF grows each year by 10.24%, which is quite nice.
Dividend Growth(5Y)10.24%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
23.52% of the earnings are spent on dividend by MSF. This is a low number and sustainable payout ratio.
The dividend of MSF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.52%
EPS Next 2Y17.68%
EPS Next 3Y18.5%
FRA:MSF (11/13/2025, 3:54:18 PM)
438
+5 (+1.15%)
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 Cap3.26T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86.29
Price Target535.94 (22.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend2.8
Dividend Growth(5Y)10.24%
DP23.52%
Div Incr Years6
Div Non Decr Years6
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)2.11%
PT rev (3m)2.86%
EPS NQ rev (1m)4.35%
EPS NQ rev (3m)4.79%
EPS NY rev (1m)0.92%
EPS NY rev (3m)3.64%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.04 | ||
| Fwd PE | 26.84 | ||
| P/S | 12.83 | ||
| P/FCF | 48.31 | ||
| P/OCF | 25.63 | ||
| P/B | 10.38 | ||
| P/tB | 16.95 | ||
| EV/EBITDA | 20.76 |
EPS(TTM)12.5
EY2.85%
EPS(NY)16.32
Fwd EY3.73%
FCF(TTM)9.07
FCFY2.07%
OCF(TTM)17.09
OCFY3.9%
SpS34.15
BVpS42.2
TBVpS25.84
PEG (NY)2.07
PEG (5Y)1.86
Graham Number108.94
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 | 10.01 |
F-Score6
WACC10.87%
ROIC/WACC2.05
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 3Y18.5%
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 3Y15.9%
Revenue Next 5Y14.31%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year51.87%
EBIT Next 3Y28.86%
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 / MSF.DE FAQ
Can you provide the ChartMill fundamental rating for MICROSOFT CORP?
ChartMill assigns a fundamental rating of 7 / 10 to MSF.DE.
Can you provide the valuation status for MICROSOFT CORP?
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.
Can you provide the PE and PB ratios for MSF stock?
The Price/Earnings (PE) ratio for MICROSOFT CORP (MSF.DE) is 35.04 and the Price/Book (PB) ratio is 10.38.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.