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STRATEGY INC (MSTR) Stock Fundamental Analysis

NASDAQ:MSTR - US5949724083 - Common Stock

358.13 USD
+20.55 (+6.09%)
Last: 8/22/2025, 8:25:29 PM
358.5 USD
+0.37 (+0.1%)
After Hours: 8/22/2025, 8:25:29 PM
Fundamental Rating

3

MSTR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 283 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.
In the past year MSTR has reported a negative cash flow from operations.
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.
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

The Return On Assets of MSTR (7.31%) is better than 77.74% of its industry peers.
Looking at the Return On Equity, with a value of 9.40%, MSTR is in the better half of the industry, outperforming 75.27% of the companies in the same industry.
MSTR's Return On Invested Capital of 9.90% is amongst the best of the industry. MSTR outperforms 84.45% 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

MSTR has a better Profit Margin (1023.69%) than 98.23% of its industry peers.
The Operating Margin of MSTR (1747.64%) is better than 98.59% of its industry peers.
With a Gross Margin value of 70.10%, MSTR perfoms like the industry average, outperforming 52.65% of the companies in the same industry.
In the last couple of years the Gross Margin of MSTR has declined.
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MSTR is destroying value.
The number of shares outstanding for MSTR has been increased compared to 1 year ago.
The number of shares outstanding for MSTR has been increased compared to 5 years ago.
MSTR has a better debt/assets ratio than last year.
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 4.76 indicates that MSTR is not in any danger for bankruptcy at the moment.
MSTR's Altman-Z score of 4.76 is fine compared to the rest of the industry. MSTR outperforms 69.96% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that MSTR is not too dependend on debt financing.
The Debt to Equity ratio of MSTR (0.16) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF N/A
Altman-Z 4.76
ROIC/WACC0.9
WACC11.06%
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

MSTR has a Current 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.
Looking at the Current ratio, with a value of 0.68, MSTR is doing worse than 85.87% of the companies in the same industry.
A Quick Ratio of 0.68 indicates that MSTR may have some problems paying its short term obligations.
The Quick ratio of MSTR (0.68) is worse than 85.87% 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.
Looking at the last year, MSTR shows a decrease in Revenue. The Revenue has decreased by -3.81% in the last year.
Measured over the past years, MSTR shows a decrease in Revenue. The Revenue has been decreasing by -0.96% on average per year.
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 38.70% 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-156.25%
EPS Next 2Y39.15%
EPS Next 3Y38.7%
EPS Next 5YN/A
Revenue Next Year-1.26%
Revenue Next 2Y1.06%
Revenue Next 3Y2.63%
Revenue Next 5Y-0.79%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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 -5 -10 -15

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.50, which indicates a very decent valuation of MSTR.
Based on the Price/Earnings ratio, MSTR is valued cheaper than 89.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of MSTR to the average of the S&P500 Index (27.24), we can say MSTR is valued rather cheaply.
The Forward Price/Earnings Ratio is negative for MSTR. No positive earnings are expected for the next year.
Industry RankSector Rank
PE 10.5
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

MSTR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MSTR is cheaper than 87.63% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.79
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 38.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.15%
EPS Next 3Y38.7%

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0

5. Dividend

5.1 Amount

No dividends for MSTR!.
Industry RankSector Rank
Dividend Yield N/A

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STRATEGY INC

NASDAQ:MSTR (8/22/2025, 8:25:29 PM)

After market: 358.5 +0.37 (+0.1%)

358.13

+20.55 (+6.09%)

Chartmill FA Rating
GICS SectorInformation Technology
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 Change7%
Ins Owners0.18%
Ins Owner Change84.73%
Market Cap101.55B
Analysts80
Price Target518.89 (44.89%)
Short Float %8.48%
Short Ratio1.95
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)5.98%
PT rev (3m)11.99%
EPS NQ rev (1m)-17.73%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-3633.49%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.41%
Valuation
Industry RankSector Rank
PE 10.5
Fwd PE N/A
P/S 219.65
P/FCF N/A
P/OCF N/A
P/B 2.02
P/tB N/A
EV/EBITDA 12.79
EPS(TTM)34.12
EY9.53%
EPS(NY)-0.41
Fwd EYN/A
FCF(TTM)-120.51
FCFYN/A
OCF(TTM)-0.34
OCFYN/A
SpS1.63
BVpS177.64
TBVpS-49.35
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 4.76
F-Score4
WACC11.06%
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-156.25%
EPS Next 2Y39.15%
EPS Next 3Y38.7%
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-1.26%
Revenue Next 2Y1.06%
Revenue Next 3Y2.63%
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