MICROSOFT CORP (MSF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MSF - US5949181045 - Common Stock
390 EUR
-7.15 (-1.8%)
We assign a fundamental rating of 7 out of 10 to MSF. MSF was compared to 119 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 has a correct valuation and a medium growth rate. This makes MSF very considerable 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.
- Each year in the past 5 years MSF had a positive operating cash flow.
1.2 Ratios
- MSF has a better Return On Assets (16.49%) than 89.08% of its industry peers.
- MSF's Return On Equity of 28.90% is amongst the best of the industry. MSF outperforms 84.03% of its industry peers.
- The Return On Invested Capital of MSF (22.25%) is better than 93.28% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MSF is significantly above the industry average of 13.47%.
| 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
- Looking at the Profit Margin, with a value of 35.71%, MSF belongs to the top of the industry, outperforming 93.28% of the companies in the same industry.
- MSF's Profit Margin has improved in the last couple of years.
- MSF's Operating Margin of 46.27% is amongst the best of the industry. MSF outperforms 97.48% of its industry peers.
- In the last couple of years the Operating Margin of MSF has grown nicely.
- MSF's Gross Margin of 68.76% is in line compared to the rest of the industry. MSF outperforms 42.86% of its industry peers.
- 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
- MSF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for MSF remains at a similar level compared to 1 year ago.
- 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
- MSF has an Altman-Z score of 9.36. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 9.36, MSF belongs to the best of the industry, outperforming 87.39% of the companies in the same industry.
- The Debt to FCF ratio of MSF is 1.25, which is an excellent value as it means it would take MSF, only 1.25 years of fcf income to pay off all of its debts.
- MSF's Debt to FCF ratio of 1.25 is fine compared to the rest of the industry. MSF outperforms 71.43% 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 54.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.36 |
ROIC/WACC2.02
WACC11.01%
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.
- With a Current ratio value of 1.40, MSF perfoms like the industry average, outperforming 48.74% of the companies in the same industry.
- A Quick Ratio of 1.39 indicates that MSF should not have too much problems paying its short term obligations.
- The Quick ratio of MSF (1.39) 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.
- Looking at the last year, MSF shows a quite strong growth in Revenue. The Revenue has grown by 15.59% in the last year.
- Measured over the past years, MSF shows a quite strong growth in Revenue. The Revenue has been growing by 14.52% on average per year.
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.
- 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 Y22.64%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
EPS Next 5Y18.83%
Revenue Next Year17.06%
Revenue Next 2Y15.95%
Revenue Next 3Y16.09%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- MSF is valuated quite expensively with a Price/Earnings ratio of 31.30.
- MSF's Price/Earnings ratio is a bit cheaper when compared to the industry. MSF is cheaper than 63.87% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, MSF is valued at the same level.
- MSF is valuated rather expensively with a Price/Forward Earnings ratio of 23.70.
- 63.87% of the companies in the same industry are more expensive than MSF, based on the Price/Forward Earnings ratio.
- MSF's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.3 | ||
| Fwd PE | 23.7 |
4.2 Price Multiples
- MSF's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as MSF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.16 | ||
| EV/EBITDA | 19.07 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 18.24% in the coming years.
PEG (NY)1.38
PEG (5Y)1.66
EPS Next 2Y18.39%
EPS Next 3Y18.24%
5. Dividend
5.1 Amount
- MSF has a yearly dividend return of 0.80%, which is pretty low.
- MSF's Dividend Yield is a higher than the industry average which is at 0.63.
- Compared to an average S&P500 Dividend Yield of 1.84, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
- 23.52% of the earnings are spent on dividend by MSF. This is a low number and sustainable payout ratio.
- MSF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.52%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
FRA:MSF (1/19/2026, 7:00:00 PM)
390
-7.15 (-1.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)01-28 2026-01-28/amc
Inst Owners75.56%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.90T
Revenue(TTM)293.81B
Net Income(TTM)104.91B
Analysts85.97
Price Target543.97 (39.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend2.79
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)0.42%
PT rev (3m)3.64%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)4.37%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)5.82%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.3 | ||
| Fwd PE | 23.7 | ||
| P/S | 11.46 | ||
| P/FCF | 43.16 | ||
| P/OCF | 22.9 | ||
| P/B | 9.27 | ||
| P/tB | 15.14 | ||
| EV/EBITDA | 19.07 |
EPS(TTM)12.46
EY3.19%
EPS(NY)16.46
Fwd EY4.22%
FCF(TTM)9.04
FCFY2.32%
OCF(TTM)17.03
OCFY4.37%
SpS34.03
BVpS42.05
TBVpS25.75
PEG (NY)1.38
PEG (5Y)1.66
Graham Number108.58
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 | 9.36 |
F-Score6
WACC11.01%
ROIC/WACC2.02
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 Y22.64%
EPS Next 2Y18.39%
EPS Next 3Y18.24%
EPS Next 5Y18.83%
Revenue 1Y (TTM)15.59%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%18.43%
Revenue Next Year17.06%
Revenue Next 2Y15.95%
Revenue Next 3Y16.09%
Revenue Next 5Y15.04%
EBIT growth 1Y20.2%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year58.37%
EBIT Next 3Y29.48%
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.
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 31.3 and the Price/Book (PB) ratio is 9.27.
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 23.52%.