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STRATEGY INC (MSTR) Stock Fundamental Analysis

USA - NASDAQ:MSTR - US5949724083 - Common Stock

333.715 USD
+7.69 (+2.36%)
Last: 9/12/2025, 2:40:08 PM
Fundamental Rating

3

MSTR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. MSTR has a medium profitability rating, but doesn't score so well on its financial health evaluation. MSTR is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

MSTR had positive earnings in the past year.
MSTR had a negative operating cash flow in the past year.
MSTR had negative earnings in 4 of the past 5 years.
Of the past 5 years MSTR 4 years had a positive operating cash flow.
MSTR Yearly Net Income VS EBIT VS OCF VS FCFMSTR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -5B -10B -15B -20B

1.2 Ratios

With a decent Return On Assets value of 7.31%, MSTR is doing good in the industry, outperforming 77.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.40%, MSTR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Return On Invested Capital of MSTR (9.90%) is better than 83.93% of its industry peers.
Industry RankSector Rank
ROA 7.31%
ROE 9.4%
ROIC 9.9%
ROA(3y)-18.83%
ROA(5y)-14.41%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
MSTR Yearly ROA, ROE, ROICMSTR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300

1.3 Margins

Looking at the Profit Margin, with a value of 1023.69%, MSTR belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
Looking at the Operating Margin, with a value of 1747.64%, MSTR belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
The Gross Margin of MSTR (70.10%) is comparable to the rest of the industry.
MSTR's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 1747.64%
PM (TTM) 1023.69%
GM 70.1%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.22%
GM growth 5Y-1.93%
MSTR Yearly Profit, Operating, Gross MarginsMSTR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -100 -200

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MSTR is destroying value.
The number of shares outstanding for MSTR has been increased compared to 1 year ago.
MSTR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MSTR has been reduced compared to a year ago.
MSTR Yearly Shares OutstandingMSTR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
MSTR Yearly Total Debt VS Total AssetsMSTR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

An Altman-Z score of 4.63 indicates that MSTR is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.63, MSTR is doing good in the industry, outperforming 67.14% of the companies in the same industry.
MSTR has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
MSTR has a Debt to Equity ratio (0.16) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF N/A
Altman-Z 4.63
ROIC/WACC0.9
WACC10.95%
MSTR Yearly LT Debt VS Equity VS FCFMSTR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B -20B

2.3 Liquidity

A Current Ratio of 0.68 indicates that MSTR may have some problems paying its short term obligations.
With a Current ratio value of 0.68, MSTR is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
MSTR has a Quick Ratio of 0.68. This is a bad value and indicates that MSTR is not financially healthy enough and could expect problems in meeting its short term obligations.
MSTR has a Quick ratio of 0.68. This is amonst the worse of the industry: MSTR underperforms 85.71% of its industry peers.
Industry RankSector Rank
Current Ratio 0.68
Quick Ratio 0.68
MSTR Yearly Current Assets VS Current LiabilitesMSTR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 2065.44% over the past year.
MSTR shows a decrease in Revenue. In the last year, the revenue decreased by -3.81%.
MSTR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.96% yearly.
EPS 1Y (TTM)2065.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5779.44%
Revenue 1Y (TTM)-3.81%
Revenue growth 3Y-3.19%
Revenue growth 5Y-0.96%
Sales Q2Q%2.73%

3.2 Future

The Earnings Per Share is expected to grow by 60.49% on average over the next years. This is a very strong growth
MSTR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.79% yearly.
EPS Next Y-155.56%
EPS Next 2Y39.16%
EPS Next 3Y60.49%
EPS Next 5YN/A
Revenue Next Year-1.73%
Revenue Next 2Y0.6%
Revenue Next 3Y0.21%
Revenue Next 5Y-0.79%

3.3 Evolution

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.
MSTR Yearly Revenue VS EstimatesMSTR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M
MSTR Yearly EPS VS EstimatesMSTR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 10 -10

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.78, the valuation of MSTR can be described as very reasonable.
Based on the Price/Earnings ratio, MSTR is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
MSTR is valuated cheaply when we compare the Price/Earnings ratio to 27.43, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for MSTR. No positive earnings are expected for the next year.
Industry RankSector Rank
PE 9.78
Fwd PE N/A
MSTR Price Earnings VS Forward Price EarningsMSTR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400 -600 -800

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSTR indicates a rather cheap valuation: MSTR is cheaper than 88.57% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.42
MSTR Per share dataMSTR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100 -100 150

4.3 Compensation for Growth

MSTR's earnings are expected to grow with 60.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.16%
EPS Next 3Y60.49%

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0

5. Dividend

5.1 Amount

MSTR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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STRATEGY INC

NASDAQ:MSTR (9/12/2025, 2:40:08 PM)

333.715

+7.69 (+2.36%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)10-28 2025-10-28/amc
Inst Owners49.35%
Inst Owner Change8.55%
Ins Owners0.18%
Ins Owner Change84.73%
Market Cap94.92B
Analysts80
Price Target527.18 (57.97%)
Short Float %8.72%
Short Ratio1.94
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20431.8%
Min EPS beat(2)5928.88%
Max EPS beat(2)34934.6%
EPS beat(4)2
Avg EPS beat(4)8888.46%
Min EPS beat(4)-4213.73%
Max EPS beat(4)34934.6%
EPS beat(8)3
Avg EPS beat(8)4019.14%
EPS beat(12)5
Avg EPS beat(12)-6119.95%
EPS beat(16)7
Avg EPS beat(16)-4695.93%
Revenue beat(2)0
Avg Revenue beat(2)-3.32%
Min Revenue beat(2)-6%
Max Revenue beat(2)-0.64%
Revenue beat(4)0
Avg Revenue beat(4)-4.46%
Min Revenue beat(4)-7.22%
Max Revenue beat(4)-0.64%
Revenue beat(8)1
Avg Revenue beat(8)-5.46%
Revenue beat(12)2
Avg Revenue beat(12)-4.4%
Revenue beat(16)2
Avg Revenue beat(16)-4.15%
PT rev (1m)1.6%
PT rev (3m)13.78%
EPS NQ rev (1m)13.94%
EPS NQ rev (3m)20%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-3655.28%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-1.8%
Valuation
Industry RankSector Rank
PE 9.78
Fwd PE N/A
P/S 205.31
P/FCF N/A
P/OCF N/A
P/B 1.88
P/tB N/A
EV/EBITDA 12.42
EPS(TTM)34.12
EY10.22%
EPS(NY)-0.41
Fwd EYN/A
FCF(TTM)-120.14
FCFYN/A
OCF(TTM)-0.34
OCFYN/A
SpS1.63
BVpS177.09
TBVpS-49.19
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 7.31%
ROE 9.4%
ROCE 12.53%
ROIC 9.9%
ROICexc 9.91%
ROICexgc 13891.1%
OM 1747.64%
PM (TTM) 1023.69%
GM 70.1%
FCFM N/A
ROA(3y)-18.83%
ROA(5y)-14.41%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.22%
GM growth 5Y-1.93%
F-Score4
Asset Turnover0.01
Health
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF N/A
Debt/EBITDA 1.01
Cap/Depr 85616%
Cap/Sales 7370.63%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.68
Quick Ratio 0.68
Altman-Z 4.63
F-Score4
WACC10.95%
ROIC/WACC0.9
Cap/Depr(3y)33259.4%
Cap/Depr(5y)26278.5%
Cap/Sales(3y)1735.12%
Cap/Sales(5y)1190.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2065.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5779.44%
EPS Next Y-155.56%
EPS Next 2Y39.16%
EPS Next 3Y60.49%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.81%
Revenue growth 3Y-3.19%
Revenue growth 5Y-0.96%
Sales Q2Q%2.73%
Revenue Next Year-1.73%
Revenue Next 2Y0.6%
Revenue Next 3Y0.21%
Revenue Next 5Y-0.79%
EBIT growth 1Y29493.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year103.67%
EBIT Next 3Y81.44%
EBIT Next 5YN/A
FCF growth 1Y-5676.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13048.8%
OCF growth 3YN/A
OCF growth 5YN/A