MICROSTRATEGY INC-CL A (MSTR)
US5949724083 - Common Stock
MSTR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 277 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MSTR was profitable.
In the past year MSTR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MSTR reported negative net income in multiple years.
MSTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MSTR (9.01%) is better than 88.69% of its industry peers.
MSTR has a Return On Equity of 19.82%. This is amongst the best in the industry. MSTR outperforms 90.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.02%, MSTR is in the better half of the industry, outperforming 67.88% of the companies in the same industry.
MSTR had an Average Return On Invested Capital over the past 3 years of 0.51%. This is significantly below the industry average of 10.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.01% | ||
| ROE | 19.82% | ||
| ROIC | 0.02% |
ROA(3y)-22.34%
ROA(5y)-12.76%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)0.51%
ROIC(5y)N/A
1.3 Margins
MSTR has a Profit Margin of 86.47%. This is amongst the best in the industry. MSTR outperforms 99.27% of its industry peers.
In the last couple of years the Profit Margin of MSTR has grown nicely.
Looking at the Operating Margin, with a value of 0.17%, MSTR is in the better half of the industry, outperforming 67.88% of the companies in the same industry.
In the last couple of years the Operating Margin of MSTR has declined.
MSTR's Gross Margin of 77.85% is fine compared to the rest of the industry. MSTR outperforms 76.64% of its industry peers.
In the last couple of years the Gross Margin of MSTR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.17% | ||
| PM (TTM) | 86.47% | ||
| GM | 77.85% |
OM growth 3Y-76.11%
OM growth 5Y-27.41%
PM growth 3YN/A
PM growth 5Y80.43%
GM growth 3Y-1.34%
GM growth 5Y-0.55%
2. Health
2.1 Basic Checks
MSTR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, MSTR has an improved debt to assets ratio.
2.2 Solvency
MSTR has an Altman-Z score of 4.78. This indicates that MSTR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MSTR (4.78) is better than 69.71% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that MSTR has dependencies on debt financing.
MSTR has a Debt to Equity ratio of 1.01. This is in the lower half of the industry: MSTR underperforms 74.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.78 |
ROIC/WACC0
WACC9.48%
2.3 Liquidity
A Current Ratio of 0.83 indicates that MSTR may have some problems paying its short term obligations.
MSTR has a worse Current ratio (0.83) than 86.13% of its industry peers.
MSTR has a Quick Ratio of 0.83. 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 0.83. This is amonst the worse of the industry: MSTR underperforms 85.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 122.97% over the past year.
MSTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 77.06% yearly.
MSTR shows a decrease in Revenue. In the last year, the revenue decreased by -0.62%.
MSTR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.05% yearly.
EPS 1Y (TTM)122.97%
EPS 3Y95.98%
EPS 5Y77.06%
EPS growth Q2Q125.63%
Revenue 1Y (TTM)-0.62%
Revenue growth 3Y1.07%
Revenue growth 5Y-0.05%
Revenue growth Q2Q-6.12%
3.2 Future
Based on estimates for the next years, MSTR will show a very negative growth in Earnings Per Share. The EPS will decrease by -46.83% on average per year.
MSTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.07% yearly.
EPS Next Y-98.28%
EPS Next 2Y-80%
EPS Next 3Y-46.83%
EPS Next 5YN/A
Revenue Next Year-0.72%
Revenue Next 2Y1.6%
Revenue Next 3Y5.07%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 41.35, MSTR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MSTR indicates a somewhat cheap valuation: MSTR is cheaper than 67.15% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. MSTR is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 2398.06 indicates a quite expensive valuation of MSTR.
MSTR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MSTR to the average of the S&P500 Index (20.88), we can say MSTR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.35 | ||
| Fwd PE | 2398.06 |
4.2 Price Multiples
MSTR's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1541.59 |
4.3 Compensation for Growth
The decent profitability rating of MSTR may justify a higher PE ratio.
A cheap valuation may be justified as MSTR's earnings are expected to decrease with -46.83% in the coming years.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y-80%
EPS Next 3Y-46.83%
5. Dividend
5.1 Amount
MSTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MICROSTRATEGY INC-CL A
NASDAQ:MSTR (5/3/2024, 7:07:29 PM)
After market: 1270 +46.99 (+3.84%)1223.01
+93.59 (+8.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.35 | ||
| Fwd PE | 2398.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.01% | ||
| ROE | 19.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.17% | ||
| PM (TTM) | 86.47% | ||
| GM | 77.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)122.97%
EPS 3Y95.98%
EPS 5Y
EPS growth Q2Q
EPS Next Y-98.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.62%
Revenue growth 3Y1.07%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y