MICROSOFT CORP (MSFT)
US5949181045 - Common Stock
323.38 -10.3 (-3.09%)
Premarket: 322.5 -0.88 (-0.27%)
Fundamental Rating
Taking everything into account, MSFT scores 6 out of 10 in our fundamental rating. MSFT was compared to 353 industry peers in the Software industry. While MSFT has a great profitability rating, there are some minor concerns on its financial health. MSFT is quite expensive at the moment. It does show a decent growth rate.
Profitability
Profitability Rating
MSFT has a Return On Assets of 18.16%. This is amongst the best returns in the industry. The industry average is 5.69%. MSFT outperforms 93% of its industry peers.
MSFT's Return On Equity of 35.45% is amongst the best returns of the industry. MSFT outperforms 86% of its industry peers. The industry average return on equity is 10.45%.
MSFT has a Profit Margin of 33.25%. This is amongst the best returns in the industry. The industry average is 10.63%. MSFT outperforms 92% of its industry peers.
MSFT has a Piotroski-F score of 5.00. This indicates an average health and profitability for MSFT.
VS Industry
ROA (18.16%) VS Industry: 93% outperformed.
0.02
56.85
ROE (35.45%) VS Industry: 86% outperformed.
0.08
8,478.95
Profit Margin (33.25%) VS Industry: 92% outperformed.
0.02
902.32
Valuation
Valuation Rating
Compared to an average industry Price/Earning Ratio of 33.43, MSFT is valued in line with its industry peers.
When comparing the Enterprise Value to EBITDA ratio of MSFT to the average industry ratio of 25.40, MSFT is valued in line with its industry peers.
The Price/Earnings Ratio is 34.59, which means the current valuation is very expensive for MSFT.
With a Forward Price/Earnings Ratio of 29.57, MSFT is valued very expensively.
The high PEG Ratio, which compensates the Price/Earnings for growth, indicates MSFT does not grow enough to justify the current Price/Earnings ratio.
With a price book ratio of 12.35, MSFT is valued rather expensively.
Compared to an average industry price book ratio of 3.31, MSFT is valued more expensive than its industry peers. 84% of the companies listed in the same industry are valued cheaper.
VS Industry
Price/Earnings (34.59) VS Industry: 48% outperformed.
1,950.63
0.31
Price/Book (12.35) VS Industry: 16% outperformed.
5,774.19
0.08
Enterprise Value/ EBITDA (22.88) VS Industry: 53% outperformed.
2,446.89
0.80
Growth
Growth Rating
MSFT shows a strong growth in Earnings Per Share. Measured over the last 5 years, the EPS has been growing by 22.69% yearly.
MSFT is expected to show quite a strong growth in Earnings Per Share. In the coming 5 years, the EPS will grow by 13.00% yearly.
Measured over the past 5 years, MSFT shows a quite strong growth in Revenue. The Revenue has been growing by 15.47% on average per year.
MSFT is expected to show quite a strong growth in Revenue. In the coming 5 years, the Revenue will grow by 10.52% yearly.
MSFT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.30%.
The Revenue has been growing slightly by 7.81% in the past year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming 5 years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming 5 years, we see that the growth is decreasing.
| Past | Future | ||||||
|---|---|---|---|---|---|---|---|
| 5Y | 3Y | 1Y | 1Y | 2Y | 3Y | 5Y | |
| EPS | 22.69% | 24.65% | 2.3% | 3.61% | 9.03% | 11.14% | 13% |
| Revenue | 15.47% | 16.36% | 7.81% | 5.01% | 7.93% | 9.4% | 10.52% |
Health
Health Rating
An Altman-Z score of 9.72 indicates that MSFT is not in any danger for bankruptcy at the moment.
MSFT has one of the better Altman-Z scores in its industry. It is much better than the industry average of 1.62. MSFT has a better score than 88% of its industry peers.
A Current Ratio of 1.91 indicates that MSFT should not have too much problems paying its short term obligations.
The Current Ratio is in line with the industry averages, which is at 1.65.
A Quick Ratio of 1.88 indicates that MSFT should not have too much problems paying its short term obligations.
MSFT has a Quick Ratio comparable to the industry average, which is at 1.63.
MSFT has a Piotroski-F score of 5.00. This indicates an average health and profitability for MSFT.
Compared to an average industry Debt to Equity Ratio of 0.03, MSFT is more dependent on financing than its industry peers.
VS Industry
Debt/Equity (0.29) VS Industry: 33% outperformed.
381.76
0.00
Quick Ratio (1.88) VS Industry: 56% outperformed.
0.06
50.77
Current Ratio (1.91) VS Industry: 56% outperformed.
0.06
50.77
Altman-Z (9.72) VS Industry: 88% outperformed.
-486.61
166.35
Dividend
Dividend Rating
The dividend of MSFT is nicely growing with an annual growth rate of 9.66%!
MSFT pays out 28.08% of its income as dividend. This is a sustainable payout ratio.
MSFT has paid a dividend for at least 10 years, which is a reliable track record.
MSFT has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 1.64, MSFT is paying slightly less dividend.
With a Dividend Yield of 0.82, MSFT pays less dividend than the S&P500 average, which is at 2.71.
MSFT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
VS Industry
Dividend Yield (0.82%) VS Industry: 31% outperformed.
0.20
12.44
MICROSOFT CORP
NASDAQ:MSFT (6/7/2023, 7:00:00 PM)
Premarket: 322.5 -0.88 (-0.27%)323.38
-10.3 (-3.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)04-25 2023-04-25/amc
Earnings (Next)07-24 2023-07-24/amc
Inst Owners74.02%
Inst Owner Change0.41%
Ins Owners0.04%
Ins Owner Change-3.16%
Market Cap2404.49B
Analysts83
Price Target344.21 (6.44%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Dividend Growth(5Y)9.66%
DP28.08%
Div Incr Years17
Div Non Decr Years17
Ex-Date05-17 2023-05-17 (0.68)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.39%
Min EPS beat(2)-0.89%
Max EPS beat(2)7.66%
EPS beat(4)2
Avg EPS beat(4)0.54%
Min EPS beat(4)-4.64%
Max EPS beat(4)7.66%
Revenue beat(2)1
Avg Revenue beat(2)-0.37%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)1.57%
Revenue beat(4)1
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)1.57%
PT rev (1m)12.17%
PT rev (3m)18.05%
EPS NQ rev (1m)4%
EPS NQ rev (3m)3.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.14%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.59 | ||
| Fwd PE | 29.57 | ||
| P/S | 11.58 | ||
| P/FCF | 41.89 | ||
| P/OCF | 28.82 | ||
| P/B | 12.35 | ||
| P/tB | 20.58 | ||
| EV/EBITDA | 22.88 |
EPS(TTM)9.35
EY2.89%
EPS(NY)10.94
Fwd EY3.38%
FCF(TTM)7.72
FCFY2.39%
OCF(TTM)11.22
OCFY3.47%
SpS27.92
BVpS26.18
TBVpS15.72
PEG (NY)9.58
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.16% | ||
| ROE | 35.45% | ||
| ROIC | 25.27% | ||
| ROICexc | 39.16% | ||
| ROICexgc | 66.33% | ||
| OM | 41.42% | ||
| PM | 33.25% | ||
| GM | 68.45% |
ROA(3y)17.66%
ROA(5y)14.62%
ROE(3y)41.42%
ROE(5y)36.53%
ROIC(3y)23.81%
ROIC(5y)20.74%
ROICexc(3y)48.66%
ROICexc(5y)47.22%
ROICexgc(3y)99.41%
ROICexgc(5y)108.22%
ROICexcg growth 3Y-8.92%
ROICexcg growth 5Y-4.67%
ROICexc growth 3Y-0.67%
ROICexc growth 5Y2.65%
OM growth 3Y7.2%
OM growth 5Y5.3%
PM growth 3Y5.57%
PM growth 5Y6.81%
GM growth 3Y1.25%
GM growth 5Y1.17%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 186.42% | ||
| Profit Quality | 83.17% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 9.72 |
F-Score5
WACC10.37%
ROIC/WACC6.4
Cap/Depr(3y)154.11%
Cap/Depr(5y)138.98%
Profit Quality(3y)94.44%
Profit Quality(5y)115.09%
Growth
EPS 1Y2.3%
EPS 3Y24.65%
EPS 5Y22.69%
EPS growth Q2Q10.36%
EPS Next Y3.61%
EPS Next 2Y9.03%
EPS Next 3Y11.14%
EPS Next 5Y13%
Revenue growth 1Y7.81%
Revenue growth 3Y16.36%
Revenue growth 5Y15.47%
Revenue growth Q2Q7.08%
Revenue Next Year5.01%
Revenue Next 2Y7.93%
Revenue Next 3Y9.4%
Revenue Next 5Y10.52%
EBIT growth 1Y4.92%
EBIT growth 3Y24.74%
EBIT growth 5Y21.59%
EBIT Next Year21.96%
EBIT Next 3Y17.05%
EBIT Next 5YN/A
FCF growth 1Y6.72%
FCF growth 3Y19.41%
FCF growth 5Y15.73%
OCF growth 1Y14.77%
OCF growth 3Y19.49%
OCF growth 5Y17.65%
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