STRATEGY INC (MSTR) Stock Fundamental Analysis
USA - NASDAQ:MSTR - US5949724083 - Common Stock
352.33 USD
+13.92 (+4.11%)
351.55 USD
-0.78 (-0.22%)
MSTR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. There are concerns on the financial health of MSTR while its profitability can be described as average. MSTR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MSTR had positive earnings in the past year.
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
With a decent Return On Assets value of 7.31%, MSTR is doing good in the industry, outperforming 78.29% of the companies in the same industry.
MSTR's Return On Equity of 9.40% is fine compared to the rest of the industry. MSTR outperforms 75.44% of its industry peers.
MSTR has a Return On Invested Capital of 9.90%. This is amongst the best in the industry. MSTR outperforms 83.63% of its industry peers.
| 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
The Profit Margin of MSTR (1023.69%) is better than 98.22% of its industry peers.
With an excellent Operating Margin value of 1747.64%, MSTR belongs to the best of the industry, outperforming 98.58% of the companies in the same industry.
The Gross Margin of MSTR (70.10%) is comparable to the rest of the industry.
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
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.
Compared to 5 years ago, MSTR has more shares outstanding
Compared to 1 year ago, MSTR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.81 indicates that MSTR is not in any danger for bankruptcy at the moment.
MSTR's Altman-Z score of 4.81 is fine compared to the rest of the industry. MSTR outperforms 67.97% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that MSTR is not too dependend on debt financing.
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 | 4.81 |
ROIC/WACC0.89
WACC11.11%
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.
MSTR has a Current ratio of 0.68. This is amonst the worse of the industry: MSTR underperforms 85.05% of its industry peers.
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.
MSTR has a Quick ratio of 0.68. This is amonst the worse of the industry: MSTR underperforms 85.05% of its industry peers.
| 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.
Looking at the last year, MSTR shows a decrease in Revenue. The Revenue has decreased by -3.81% in the last year.
The Revenue has been decreasing by -0.96% on average over the past years.
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.
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 Y296.98%
EPS Next 2Y91.04%
EPS Next 3Y104.44%
EPS Next 5YN/A
Revenue Next Year-1.65%
Revenue Next 2Y1.32%
Revenue Next 3Y0.21%
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 10.33, the valuation of MSTR can be described as very reasonable.
MSTR's Price/Earnings ratio is rather cheap when compared to the industry. MSTR is cheaper than 89.68% of the companies in the same industry.
MSTR is valuated cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
MSTR is valuated quite expensively with a Price/Forward Earnings ratio of 33.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSTR indicates a somewhat cheap valuation: MSTR is cheaper than 60.85% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.29, MSTR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 33.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MSTR is valued cheaper than 87.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.93 |
4.3 Compensation for Growth
MSTR's 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 104.44% in the coming years. This may justify a more expensive valuation.
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 |
352.33
+13.92 (+4.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners54.59%
Inst Owner Change8.55%
Ins Owners0.17%
Ins Owner Change85.74%
Market Cap100.86B
Analysts80
Price Target537.98 (52.69%)
Short Float %7.95%
Short Ratio1.88
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)1.67%
PT rev (3m)9.88%
EPS NQ rev (1m)8002.5%
EPS NQ rev (3m)7513.23%
EPS NY rev (1m)177.08%
EPS NY rev (3m)176.87%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 33.26 | ||
| P/S | 218.16 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.93 |
EPS(TTM)34.12
EY9.68%
EPS(NY)10.59
Fwd EY3.01%
FCF(TTM)-119.37
FCFYN/A
OCF(TTM)-0.33
OCFYN/A
SpS1.62
BVpS175.96
TBVpS-48.88
PEG (NY)0.03
PEG (5Y)N/A
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
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 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 | 4.81 |
F-Score4
WACC11.11%
ROIC/WACC0.89
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-1.65%
Revenue Next 2Y1.32%
Revenue Next 3Y0.21%
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