STRATEGY INC (MSTR) Stock Fundamental Analysis
USA - NASDAQ:MSTR - US5949724083 - Common Stock
289.08 USD
+4.16 (+1.46%)
289.88 USD
+0.8 (+0.28%)
Overall MSTR gets a fundamental rating of 4 out of 10. We evaluated MSTR against 286 industry peers in the Software industry. MSTR has a medium profitability rating, but doesn't score so well on its financial health evaluation. MSTR has a valuation in line with the averages, but it does not seem to be growing.
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.
Of the past 5 years MSTR 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MSTR (7.31%) is better than 78.25% of its industry peers.
MSTR has a better Return On Equity (9.40%) than 75.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.90%, MSTR belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
MSTR's Profit Margin of 1023.69% is amongst the best of the industry. MSTR outperforms 98.25% of its industry peers.
The Operating Margin of MSTR (1747.64%) is better than 98.60% of its industry peers.
MSTR has a Gross Margin of 70.10%. This is comparable to the rest of the industry: MSTR outperforms 53.68% of its industry peers.
In the last couple of years the Gross Margin of MSTR has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MSTR is destroying value.
MSTR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MSTR has more shares outstanding
The debt/assets ratio for MSTR has been reduced compared to a year ago.
2.2 Solvency
MSTR has an Altman-Z score of 4.18. This indicates that MSTR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.18, MSTR is doing good in the industry, outperforming 64.91% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.18 |
ROIC/WACC0.92
WACC10.78%
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 86.32% of the companies in the same industry.
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.
With a Quick ratio value of 0.68, MSTR is not doing good in the industry: 86.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 2065.44% over the past year.
The Revenue has decreased by -3.81% in the past 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
Based on estimates for the next years, MSTR will show a very strong growth in Earnings Per Share. The EPS will grow by 104.44% on average per year.
The Revenue is expected to decrease by -0.79% on average over the next years.
EPS Next Y296.98%
EPS Next 2Y91.04%
EPS Next 3Y104.44%
EPS Next 5YN/A
Revenue Next Year-1.83%
Revenue Next 2Y1.19%
Revenue Next 3Y-1.78%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.47, the valuation of MSTR can be described as reasonable.
Based on the Price/Earnings ratio, MSTR is valued cheaper than 92.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of MSTR to the average of the S&P500 Index (26.91), we can say MSTR is valued rather cheaply.
With a Price/Forward Earnings ratio of 27.29, MSTR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSTR indicates a somewhat cheap valuation: MSTR is cheaper than 65.96% of the companies listed in the same industry.
MSTR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 27.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MSTR is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.07 |
4.3 Compensation for Growth
The 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 104.44% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y91.04%
EPS Next 3Y104.44%
5. Dividend
5.1 Amount
No dividends for MSTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
289.08
+4.16 (+1.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners54.59%
Inst Owner Change0.11%
Ins Owners0.17%
Ins Owner Change79.1%
Market Cap83.00B
Revenue(TTM)462.32M
Net Income(TTM)4.73B
Analysts80
Price Target562.04 (94.42%)
Short Float %9.49%
Short Ratio2.18
Dividend
| Industry Rank | Sector 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)4.47%
PT rev (3m)14.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7513.23%
EPS NY rev (1m)177.08%
EPS NY rev (3m)176.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 27.29 | ||
| P/S | 179.52 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.07 |
EPS(TTM)34.12
EY11.8%
EPS(NY)10.59
Fwd EY3.66%
FCF(TTM)-119.02
FCFYN/A
OCF(TTM)-0.33
OCFYN/A
SpS1.61
BVpS175.44
TBVpS-48.73
PEG (NY)0.03
PEG (5Y)N/A
Graham Number367
Profitability
| Industry Rank | Sector 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
ROICexgc growth 3YN/A
ROICexgc 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 Rank | Sector 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 | 4.18 |
F-Score4
WACC10.78%
ROIC/WACC0.92
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 Y296.98%
EPS Next 2Y91.04%
EPS Next 3Y104.44%
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-1.83%
Revenue Next 2Y1.19%
Revenue Next 3Y-1.78%
Revenue Next 5Y-0.79%
EBIT growth 1Y29493.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year580.57%
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
STRATEGY INC / MSTR FAQ
What is the fundamental rating for MSTR stock?
ChartMill assigns a fundamental rating of 4 / 10 to MSTR.
Can you provide the valuation status for STRATEGY INC?
ChartMill assigns a valuation rating of 6 / 10 to STRATEGY INC (MSTR). This can be considered as Fairly Valued.
What is the profitability of MSTR stock?
STRATEGY INC (MSTR) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for MSTR stock?
The Earnings per Share (EPS) of STRATEGY INC (MSTR) is expected to grow by 296.98% in the next year.