MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MSF - US5949181045 - Common Stock
414 EUR
+1.4 (+0.34%)
Taking everything into account, MSF scores 7 out of 10 in our fundamental rating. MSF was compared to 116 industry peers in the Software industry. Both the health and profitability get an excellent rating, making MSF a very profitable company, without any liquidiy or solvency issues. MSF is not valued too expensively and it also shows a decent growth rate. This makes MSF very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year MSF was profitable.
In the past year MSF had a positive cash flow from operations.
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
With an excellent Return On Assets value of 16.49%, MSF belongs to the best of the industry, outperforming 90.52% of the companies in the same industry.
With an excellent Return On Equity value of 28.90%, MSF belongs to the best of the industry, outperforming 87.07% of the companies in the same industry.
MSF has a better Return On Invested Capital (22.25%) than 92.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MSF is significantly above the industry average of 13.28%.
| 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 92.24% of the companies in the same industry.
In the last couple of years the Profit Margin of MSF has grown nicely.
MSF's Operating Margin of 46.27% is amongst the best of the industry. MSF outperforms 94.83% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSF is creating value.
Compared to 1 year ago, MSF has about the same amount of shares outstanding.
MSF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MSF has been reduced compared to a year ago.
2.2 Solvency
MSF has an Altman-Z score of 9.63. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
MSF has a better Altman-Z score (9.63) than 90.52% of its industry peers.
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's Debt to FCF ratio of 1.25 is fine compared to the rest of the industry. MSF outperforms 74.14% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that MSF is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, MSF is in line with its industry, outperforming 55.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.63 |
ROIC/WACC2.06
WACC10.81%
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.
Looking at the Quick ratio, with a value of 1.39, MSF is in line with its industry, outperforming 52.59% of the companies in the same industry.
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 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, MSF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.86% on average per year.
Looking at the last year, MSF shows a quite strong growth in Revenue. The Revenue has grown by 15.59% in the last year.
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)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
MSF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.83% yearly.
MSF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.04% yearly.
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
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
MSF is valuated quite expensively with a Price/Earnings ratio of 33.39.
Based on the Price/Earnings ratio, MSF is valued a bit cheaper than 64.66% of the companies in the same industry.
MSF's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.46.
MSF is valuated quite expensively with a Price/Forward Earnings ratio of 25.57.
64.66% of the companies in the same industry are more expensive than MSF, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, MSF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 25.57 |
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.
MSF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.01 | ||
| EV/EBITDA | 19.78 |
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 MSF may justify a higher PE ratio.
A more expensive valuation may be justified as MSF's earnings are expected to grow with 18.52% in the coming years.
PEG (NY)1.97
PEG (5Y)1.77
EPS Next 2Y17.68%
EPS Next 3Y18.52%
5. Dividend
5.1 Amount
MSF has a yearly dividend return of 0.76%, which is pretty low.
MSF's Dividend Yield is a higher than the industry average which is at 2.22.
With a Dividend Yield of 0.76, MSF pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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
5.3 Sustainability
MSF pays out 23.52% 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.
DP23.52%
EPS Next 2Y17.68%
EPS Next 3Y18.52%
FRA:MSF (12/5/2025, 7:00:00 PM)
414
+1.4 (+0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners75.51%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3.08T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts86
Price Target541.71 (30.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend2.78
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)3.74%
PT rev (3m)2.83%
EPS NQ rev (1m)4.34%
EPS NQ rev (3m)4.34%
EPS NY rev (1m)0.96%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 25.57 | ||
| P/S | 12.22 | ||
| P/FCF | 46.01 | ||
| P/OCF | 24.41 | ||
| P/B | 9.89 | ||
| P/tB | 16.14 | ||
| EV/EBITDA | 19.78 |
EPS(TTM)12.4
EY3%
EPS(NY)16.19
Fwd EY3.91%
FCF(TTM)9
FCFY2.17%
OCF(TTM)16.96
OCFY4.1%
SpS33.89
BVpS41.87
TBVpS25.64
PEG (NY)1.97
PEG (5Y)1.77
Graham Number108.09
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 | 9.63 |
F-Score6
WACC10.81%
ROIC/WACC2.06
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 / 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 33.39 and the Price/Book (PB) ratio is 9.89.
How financially healthy is MICROSOFT CORP?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.