Taking everything into account, MSTR scores 4 out of 10 in our fundamental rating. MSTR was compared to 278 industry peers in the Software industry. While MSTR is still in line with the averages on profitability rating, there are concerns on its financial health. MSTR is cheap, but on the other hand it scores bad on growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MSTR was profitable.
MSTR had a negative operating cash flow in the past year.
In the past 5 years MSTR reported 4 times negative net income.
MSTR had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 10.48%, MSTR belongs to the top of the industry, outperforming 83.81% of the companies in the same industry.
MSTR has a Return On Equity of 13.28%. This is in the better half of the industry: MSTR outperforms 76.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.92%, MSTR belongs to the top of the industry, outperforming 88.85% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	10.48%
ROE	13.28%
ROIC	12.92%

ROA(3y)-18.83%

ROA(5y)-14.41%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

MSTR has a Profit Margin of 1625.05%. This is amongst the best in the industry. MSTR outperforms 98.56% of its industry peers.
MSTR has a better Operating Margin (2524.74%) than 98.56% of its industry peers.
With a Gross Margin value of 70.12%, MSTR perfoms like the industry average, outperforming 52.52% of the companies in the same industry.
MSTR's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	2524.74%
PM (TTM)	1625.05%
GM	70.12%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MSTR is still creating some value.
MSTR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MSTR has been increased compared to 5 years ago.
Compared to 1 year ago, MSTR has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.75 indicates that MSTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MSTR (2.75) is comparable to the rest of the industry.
MSTR has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
MSTR has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: MSTR outperforms 47.84% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	N/A
Altman-Z	2.75

ROIC/WACC1.21

WACC10.64%

2.3 Liquidity

A Current Ratio of 0.66 indicates that MSTR may have some problems paying its short term obligations.
MSTR has a Current ratio of 0.66. This is amonst the worse of the industry: MSTR underperforms 90.65% of its industry peers.
A Quick Ratio of 0.66 indicates that MSTR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.66, MSTR is doing worse than 90.29% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.66
Quick Ratio	0.66

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 1830.26% over the past year.
Looking at the last year, MSTR shows a small growth in Revenue. The Revenue has grown by 1.65% in the last year.
The Revenue has been decreasing by -0.96% on average over the past years.

EPS 1Y (TTM)1830.26%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%589.53%

Revenue 1Y (TTM)1.65%

Revenue growth 3Y-3.19%

Revenue growth 5Y-0.96%

Sales Q2Q%10.87%

3.2 Future

Based on estimates for the next years, MSTR will show a very strong growth in Earnings Per Share. The EPS will grow by 103.55% on average per year.
MSTR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.79% yearly.

EPS Next Y831.55%

EPS Next 2Y208.17%

EPS Next 3Y103.55%

EPS Next 5YN/A

Revenue Next Year1.64%

Revenue Next 2Y2.27%

Revenue Next 3Y0.3%

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 3.65 indicates a rather cheap valuation of MSTR.
Compared to the rest of the industry, the Price/Earnings ratio of MSTR indicates a rather cheap valuation: MSTR is cheaper than 96.04% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.87. MSTR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 3.36, the valuation of MSTR can be described as very cheap.
96.04% of the companies in the same industry are more expensive than MSTR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, MSTR is valued rather cheaply.

		Industry Rank	Sector Rank
PE	3.65
Fwd PE	3.36

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MSTR is valued cheaper than 96.04% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	4.65

4.3 Compensation for Growth

MSTR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MSTR's earnings are expected to grow with 103.55% in the coming years.