MICROSOFT CORP (MSF.DE) Fundamental Analysis & Valuation
FRA:MSF • US5949181045
Current stock price
368.7 EUR
+7.1 (+1.96%)
Last:
This MSF.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- In the past 5 years MSF has always been profitable.
- MSF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 17.93%, MSF belongs to the top of the industry, outperforming 91.60% of the companies in the same industry.
- MSF's Return On Equity of 30.51% is amongst the best of the industry. MSF outperforms 87.39% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 21.86%, MSF belongs to the top of the industry, outperforming 93.28% 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 13.78%.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 39.04%, MSF belongs to the top of the industry, outperforming 98.32% of the companies in the same industry.
- MSF's Profit Margin has improved in the last couple of years.
- MSF has a better Operating Margin (46.67%) than 97.48% of its industry peers.
- MSF's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 68.59%, MSF is in line with its industry, outperforming 42.86% of the companies in the same industry.
- In the last couple of years the Gross Margin of MSF has remained more or less at the same level.
| Industry Rank | Sector 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%
2. MSF.DE Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MSF is creating value.
- MSF has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for MSF has been reduced compared to 5 years ago.
- MSF has a better debt/assets ratio than last year.
2.2 Solvency
- MSF has an Altman-Z score of 8.76. This indicates that MSF is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.76, 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 1.30, 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 65.55% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that MSF is not too dependend on debt financing.
- The Debt to Equity ratio of MSF (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 8.76 |
ROIC/WACC2.08
WACC10.5%
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.
- The Current ratio of MSF (1.39) is comparable to the rest of the industry.
- A Quick Ratio of 1.38 indicates that MSF should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.38, MSF perfoms like the industry average, outperforming 52.10% of the companies in the same 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 | 1.39 | ||
| Quick Ratio | 1.38 |
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.
- Looking at the last year, MSF shows a quite strong growth in Revenue. The Revenue has grown by 16.67% 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)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.
- The Revenue is expected to grow by 16.18% on average over the next years. This is quite good.
EPS Next Y24.06%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
EPS Next 5Y18.94%
Revenue Next Year17.49%
Revenue Next 2Y16.61%
Revenue Next 3Y16.48%
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.
- 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. MSF.DE Valuation Analysis
4.1 Price/Earnings Ratio
- MSF is valuated quite expensively with a Price/Earnings ratio of 28.21.
- Based on the Price/Earnings ratio, MSF is valued a bit cheaper than the industry average as 63.87% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.79. MSF is around the same levels.
- MSF is valuated rather expensively with a Price/Forward Earnings ratio of 22.38.
- MSF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MSF is cheaper than 65.55% of the companies in the same industry.
- MSF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 38.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.21 | ||
| Fwd PE | 22.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MSF is valued a bit cheaper than 61.34% of the companies in the same industry.
- 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 | 41.62 | ||
| EV/EBITDA | 17.27 |
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.
- MSF's earnings are expected to grow with 18.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)1.5
EPS Next 2Y19.21%
EPS Next 3Y18.63%
5. MSF.DE Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.87%, MSF is not a good candidate for dividend investing.
- MSF's Dividend Yield is a higher than the industry average which is at 0.84.
- Compared to an average S&P500 Dividend Yield of 1.81, MSF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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 Years7
Div Non Decr Years7
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 2Y19.21%
EPS Next 3Y18.63%
MSF.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:MSF (4/22/2026, 5:29:15 PM)
368.7
+7.1 (+1.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-28 2026-01-28/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners75.75%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.74T
Revenue(TTM)305.45B
Net Income(TTM)119.26B
Analysts85.23
Price Target514.56 (39.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend2.75
Dividend Growth(5Y)10.24%
DP21.19%
Div Incr Years7
Div Non Decr Years7
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)1.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)0.12%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)-0.82%
PT rev (3m)-5.41%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.21 | ||
| Fwd PE | 22.38 | ||
| P/S | 10.55 | ||
| P/FCF | 41.62 | ||
| P/OCF | 20.07 | ||
| P/B | 8.24 | ||
| P/tB | 12.84 | ||
| EV/EBITDA | 17.27 |
EPS(TTM)13.07
EY3.54%
EPS(NY)16.47
Fwd EY4.47%
FCF(TTM)8.86
FCFY2.4%
OCF(TTM)18.37
OCFY4.98%
SpS34.96
BVpS44.73
TBVpS28.72
PEG (NY)1.17
PEG (5Y)1.5
Graham Number114.696 (-68.89%)
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 8.76 |
F-Score6
WACC10.5%
ROIC/WACC2.08
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 Y24.06%
EPS Next 2Y19.21%
EPS Next 3Y18.63%
EPS Next 5Y18.94%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y12.42%
Revenue growth 5Y14.52%
Sales Q2Q%16.72%
Revenue Next Year17.49%
Revenue Next 2Y16.61%
Revenue Next 3Y16.48%
Revenue Next 5Y16.18%
EBIT growth 1Y21.11%
EBIT growth 3Y15.52%
EBIT growth 5Y19.4%
EBIT Next Year55.69%
EBIT Next 3Y29%
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 5 / 10 to MICROSOFT CORP (MSF.DE). This can be considered as Fairly Valued.
What is the profitability of MSF stock?
MICROSOFT CORP (MSF.DE) has a profitability rating of 8 / 10.
What is the financial health of MICROSOFT CORP (MSF.DE) stock?
The financial health rating of MICROSOFT CORP (MSF.DE) is 8 / 10.
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%.