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MICROSTRATEGY INC-CL A (MSTR) Stock Fundamental Analysis

NASDAQ:MSTR - Nasdaq - US5949724083 - Common Stock - Currency: USD

387.11  -4.07 (-1.04%)

Premarket: 380.45 -6.66 (-1.72%)

Fundamental Rating

2

Overall MSTR gets a fundamental rating of 2 out of 10. We evaluated MSTR against 284 industry peers in the Software industry. Both the profitability and financial health of MSTR have multiple concerns. MSTR does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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1

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.
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

MSTR's Return On Assets of -12.16% is on the low side compared to the rest of the industry. MSTR is outperformed by 61.97% of its industry peers.
MSTR has a Return On Equity of -15.93%. This is comparable to the rest of the industry: MSTR outperforms 46.48% of its industry peers.
Industry RankSector Rank
ROA -12.16%
ROE -15.93%
ROIC 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
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 Gross Margin of 70.95%. This is comparable to the rest of the industry: MSTR outperforms 56.69% of its industry peers.
In the last couple of years the Gross Margin of MSTR has declined.
MSTR does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 70.95%
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

MSTR does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
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

MSTR has an Altman-Z score of 6.31. This indicates that MSTR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.31, MSTR is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that MSTR is not too dependend on debt financing.
MSTR's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. MSTR outperforms 43.66% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF N/A
Altman-Z 6.31
ROIC/WACCN/A
WACC11%
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 0.66 indicates that MSTR may have some problems paying its short term obligations.
With a Current ratio value of 0.66, MSTR is not doing good in the industry: 86.27% of the companies in the same industry are doing better.
A Quick Ratio of 0.66 indicates that MSTR may have some problems paying its short term obligations.
MSTR's Quick ratio of 0.66 is on the low side compared to the rest of the industry. MSTR is outperformed by 86.27% of its industry peers.
Industry RankSector Rank
Current Ratio 0.66
Quick Ratio 0.66
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 202.05% over the past year.
The Revenue has decreased by -6.19% 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)202.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%891.77%
Revenue 1Y (TTM)-6.19%
Revenue growth 3Y-3.19%
Revenue growth 5Y-0.96%
Sales Q2Q%-3.63%

3.2 Future

The Earnings Per Share is expected to grow by 60.44% 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 Y93.19%
EPS Next 2Y39.28%
EPS Next 3Y60.44%
EPS Next 5YN/A
Revenue Next Year-1.13%
Revenue Next 2Y1.11%
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 -5 10 -10

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1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 407.48 indicates a quite expensive valuation of MSTR.
The rest of the industry has a similar Price/Earnings ratio as MSTR.
MSTR is valuated expensively when we compare the Price/Earnings ratio to 26.55, 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 407.48
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 -500 -1K

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
MSTR Per share dataMSTR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50 100 -100

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as MSTR's earnings are expected to grow with 60.44% in the coming years.
PEG (NY)4.37
PEG (5Y)N/A
EPS Next 2Y39.28%
EPS Next 3Y60.44%

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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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MICROSTRATEGY INC-CL A

NASDAQ:MSTR (6/11/2025, 8:01:08 PM)

Premarket: 380.45 -6.66 (-1.72%)

387.11

-4.07 (-1.04%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-05 2025-05-05/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners47.11%
Inst Owner Change17.22%
Ins Owners0.19%
Ins Owner Change68.69%
Market Cap105.84B
Analysts81.11
Price Target489.6 (26.48%)
Short Float %10.82%
Short Ratio1.67
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)1
Avg EPS beat(2)857.58%
Min EPS beat(2)-4213.73%
Max EPS beat(2)5928.88%
EPS beat(4)1
Avg EPS beat(4)52.49%
Min EPS beat(4)-4213.73%
Max EPS beat(4)5928.88%
EPS beat(8)3
Avg EPS beat(8)-279.81%
EPS beat(12)4
Avg EPS beat(12)-9128.41%
EPS beat(16)7
Avg EPS beat(16)-6875.11%
Revenue beat(2)0
Avg Revenue beat(2)-5%
Min Revenue beat(2)-6%
Max Revenue beat(2)-3.99%
Revenue beat(4)0
Avg Revenue beat(4)-7.02%
Min Revenue beat(4)-10.88%
Max Revenue beat(4)-3.99%
Revenue beat(8)1
Avg Revenue beat(8)-6.04%
Revenue beat(12)2
Avg Revenue beat(12)-4.59%
Revenue beat(16)3
Avg Revenue beat(16)-3.98%
PT rev (1m)5.67%
PT rev (3m)9.2%
EPS NQ rev (1m)23.54%
EPS NQ rev (3m)26.6%
EPS NY rev (1m)0.85%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)-1.63%
Revenue NQ rev (3m)-2.46%
Revenue NY rev (1m)-2.27%
Revenue NY rev (3m)-3%
Valuation
Industry RankSector Rank
PE 407.48
Fwd PE N/A
P/S 230.44
P/FCF N/A
P/OCF N/A
P/B 3.16
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.95
EY0.25%
EPS(NY)-0.39
Fwd EYN/A
FCF(TTM)-103.08
FCFYN/A
OCF(TTM)-0.31
OCFYN/A
SpS1.68
BVpS122.63
TBVpS-36.65
PEG (NY)4.37
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -12.16%
ROE -15.93%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 70.95%
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-Score2
Asset Turnover0.01
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 87678.7%
Cap/Sales 6118.17%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.66
Quick Ratio 0.66
Altman-Z 6.31
F-Score2
WACC11%
ROIC/WACCN/A
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)202.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%891.77%
EPS Next Y93.19%
EPS Next 2Y39.28%
EPS Next 3Y60.44%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.19%
Revenue growth 3Y-3.19%
Revenue growth 5Y-0.96%
Sales Q2Q%-3.63%
Revenue Next Year-1.13%
Revenue Next 2Y1.11%
Revenue Next 3Y2.63%
Revenue Next 5Y-0.79%
EBIT growth 1Y-573.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year102.35%
EBIT Next 3Y81.44%
EBIT Next 5YN/A
FCF growth 1Y-10861.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2632.86%
OCF growth 3YN/A
OCF growth 5YN/A