STRATEGY INC (MSTR) Stock Fundamental Analysis
USA - NASDAQ:MSTR - US5949724083 - Common Stock
206.8 USD
+11.38 (+5.82%)
203.75 USD
-3.05 (-1.47%)
Overall MSTR gets a fundamental rating of 4 out of 10. We evaluated MSTR against 281 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 bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year MSTR was profitable.
MSTR had a negative operating cash flow in the past year.
MSTR had negative earnings in 4 of the past 5 years.
Of the past 5 years MSTR 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MSTR (10.48%) is better than 84.70% of its industry peers.
Looking at the Return On Equity, with a value of 13.28%, MSTR is in the better half of the industry, outperforming 77.58% of the companies in the same industry.
MSTR has a better Return On Invested Capital (12.92%) than 87.90% of its industry peers.
| 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
The Profit Margin of MSTR (1625.05%) is better than 98.58% of its industry peers.
MSTR's Operating Margin of 2524.74% is amongst the best of the industry. MSTR outperforms 98.58% of its industry peers.
MSTR has a Gross Margin of 70.12%. This is comparable to the rest of the industry: MSTR outperforms 54.09% of its industry peers.
In the last couple of years the Gross Margin of MSTR has declined.
| 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%
2. Health
2.1 Basic Checks
MSTR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
The debt/assets ratio for MSTR has been reduced compared to a year ago.
2.2 Solvency
MSTR has an Altman-Z score of 3.07. This indicates that MSTR is financially healthy and has little risk of bankruptcy at the moment.
MSTR's Altman-Z score of 3.07 is fine compared to the rest of the industry. MSTR outperforms 61.92% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that MSTR is not too dependend on debt financing.
MSTR has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: MSTR outperforms 49.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.07 |
ROIC/WACC1.2
WACC10.73%
2.3 Liquidity
A Current Ratio of 0.66 indicates that MSTR may have some problems paying its short term obligations.
MSTR has a worse Current ratio (0.66) than 88.26% of its industry peers.
MSTR has a Quick Ratio of 0.66. 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 0.66, MSTR is not doing good in the industry: 88.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1830.26% over the past year.
The Revenue has been growing slightly by 1.65% 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)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
The Earnings Per Share is expected to grow by 109.01% on average over the next years. This is a very strong growth
Based on estimates for the next years, MSTR will show a decrease in Revenue. The Revenue will decrease by -0.79% on average per year.
EPS Next Y760.71%
EPS Next 2Y157.73%
EPS Next 3Y109.01%
EPS Next 5YN/A
Revenue Next Year-1.2%
Revenue Next 2Y1.48%
Revenue Next 3Y-0.08%
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
With a Price/Earnings ratio of 4.67, the valuation of MSTR can be described as very cheap.
MSTR's Price/Earnings ratio is rather cheap when compared to the industry. MSTR is cheaper than 95.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of MSTR to the average of the S&P500 Index (25.51), we can say MSTR is valued rather cheaply.
MSTR is valuated cheaply with a Price/Forward Earnings ratio of 6.94.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSTR indicates a rather cheap valuation: MSTR is cheaper than 93.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.98. MSTR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.67 | ||
| Fwd PE | 6.94 |
4.2 Price Multiples
MSTR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MSTR is cheaper than 94.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.35 |
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.
MSTR's earnings are expected to grow with 109.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y157.73%
EPS Next 3Y109.01%
5. Dividend
5.1 Amount
No dividends for MSTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
206.8
+11.38 (+5.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners54.59%
Inst Owner Change9.39%
Ins Owners0.17%
Ins Owner Change91.56%
Market Cap59.37B
Revenue(TTM)474.94M
Net Income(TTM)7.72B
Analysts80.91
Price Target552.24 (167.04%)
Short Float %9.47%
Short Ratio2.07
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)17468%
Min EPS beat(2)1.27%
Max EPS beat(2)34934.6%
EPS beat(4)3
Avg EPS beat(4)9162.77%
Min EPS beat(4)-4213.73%
Max EPS beat(4)34934.6%
EPS beat(8)4
Avg EPS beat(8)4191.29%
EPS beat(12)6
Avg EPS beat(12)-6038.3%
EPS beat(16)7
Avg EPS beat(16)-4698.76%
Revenue beat(2)1
Avg Revenue beat(2)2.95%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)6.53%
Revenue beat(4)1
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-6%
Max Revenue beat(4)6.53%
Revenue beat(8)1
Avg Revenue beat(8)-4.69%
Revenue beat(12)3
Avg Revenue beat(12)-3.57%
Revenue beat(16)3
Avg Revenue beat(16)-3.64%
PT rev (1m)-1.74%
PT rev (3m)6.43%
EPS NQ rev (1m)-11.43%
EPS NQ rev (3m)2641.5%
EPS NY rev (1m)235.42%
EPS NY rev (3m)357.84%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.67 | ||
| Fwd PE | 6.94 | ||
| P/S | 125.01 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.35 |
EPS(TTM)44.26
EY21.4%
EPS(NY)29.8
Fwd EY14.41%
FCF(TTM)-130.68
FCFYN/A
OCF(TTM)-0.22
OCFYN/A
SpS1.65
BVpS202.42
TBVpS-52.55
PEG (NY)0.01
PEG (5Y)N/A
Graham Number448.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.48% | ||
| ROE | 13.28% | ||
| ROCE | 16.36% | ||
| ROIC | 12.92% | ||
| ROICexc | 12.93% | ||
| ROICexgc | 27113.6% | ||
| OM | 2524.74% | ||
| PM (TTM) | 1625.05% | ||
| GM | 70.12% | ||
| 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 | 0.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 199348% | ||
| Cap/Sales | 7886.31% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 3.07 |
F-Score4
WACC10.73%
ROIC/WACC1.2
Cap/Depr(3y)46583.7%
Cap/Depr(5y)34273.1%
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)1830.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%589.53%
EPS Next Y760.71%
EPS Next 2Y157.73%
EPS Next 3Y109.01%
EPS Next 5YN/A
Revenue 1Y (TTM)1.65%
Revenue growth 3Y-3.19%
Revenue growth 5Y-0.96%
Sales Q2Q%10.87%
Revenue Next Year-1.2%
Revenue Next 2Y1.48%
Revenue Next 3Y-0.08%
Revenue Next 5Y-0.79%
EBIT growth 1Y21399.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year580.57%
EBIT Next 3Y81.44%
EBIT Next 5YN/A
FCF growth 1Y-4873.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-843.57%
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 8 / 10 to STRATEGY INC (MSTR). This can be considered as Undervalued.
What is the profitability of MSTR stock?
STRATEGY INC (MSTR) has a profitability rating of 5 / 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 760.71% in the next year.