Microsoft
Market Cap
US$1.6t
Last Updated
2020/07/02 23:49 UTC
Data Sources
Company Financials +
Executive Summary
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.
Snowflake Analysis
Outstanding track record with adequate balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Microsoft's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MSFT's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.0%
MSFT
2.8%
US Software
1.6%
US Market
1 Year Return
50.1%
MSFT
35.2%
US Software
4.8%
US Market
Return vs Industry: MSFT exceeded the US Software industry which returned 35.2% over the past year.
Return vs Market: MSFT exceeded the US Market which returned 4.8% over the past year.
Shareholder returns
| MSFT | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.0% | 2.8% | 1.6% |
| 30 Day | 11.5% | 9.3% | 2.3% |
| 90 Day | 34.1% | 42.2% | 29.5% |
| 1 Year | 51.9%50.1% | 36.2%35.2% | 7.1%4.8% |
| 3 Year | 215.5%200.8% | 157.8%148.9% | 37.1%28.1% |
| 5 Year | 411.9%363.3% | 249.2%228.6% | 67.2%48.6% |
Price Volatility Vs. Market
How volatile is Microsoft's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Does Microsoft Corporation's (NASDAQ:MSFT) P/E Ratio Signal A Buying Opportunity?3 months ago | Simply Wall St
Microsoft (NASDAQ:MSFT) Has A Rock Solid Balance Sheet4 months ago | Simply Wall St
The Microsoft (NASDAQ:MSFT) Share Price Is Up 311% And Shareholders Are DelightedValuation
Is Microsoft undervalued compared to its fair value and its price relative to the market?
34.01x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MSFT ($206.26) is trading above our estimate of fair value ($175.83)
Significantly Below Fair Value: MSFT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MSFT is good value based on its PE Ratio (34x) compared to the Software industry average (53.6x).
PE vs Market: MSFT is poor value based on its PE Ratio (34x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: MSFT is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: MSFT is overvalued based on its PB Ratio (13.7x) compared to the US Software industry average (6.5x).
Next Steps
Future Growth
How is Microsoft forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?
11.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MSFT's forecast earnings growth (11.6% per year) is above the savings rate (2.2%).
Earnings vs Market: MSFT's earnings (11.6% per year) are forecast to grow slower than the US market (22.8% per year).
High Growth Earnings: MSFT's earnings are forecast to grow, but not significantly.
Revenue vs Market: MSFT's revenue (10.8% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: MSFT's revenue (10.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MSFT's Return on Equity is forecast to be high in 3 years time (35.8%)
Next Steps
Past Performance
How has Microsoft performed over the past 5 years?
25.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MSFT has high quality earnings.
Growing Profit Margin: MSFT's current net profit margins (33.4%) are higher than last year (28.6%).
Past Earnings Growth Analysis
Earnings Trend: MSFT's earnings have grown significantly by 25.3% per year over the past 5 years.
Accelerating Growth: MSFT's earnings growth over the past year (32.3%) exceeds its 5-year average (25.3% per year).
Earnings vs Industry: MSFT earnings growth over the past year (32.3%) exceeded the Software industry 7.9%.
Return on Equity
High ROE: MSFT's Return on Equity (40.4%) is considered outstanding.
Next Steps
Financial Health
How is Microsoft's financial position?
Financial Position Analysis
Short Term Liabilities: MSFT's short term assets ($170.5B) exceed its short term liabilities ($58.7B).
Long Term Liabilities: MSFT's short term assets ($170.5B) exceed its long term liabilities ($112.2B).
Debt to Equity History and Analysis
Debt Level: MSFT's debt to equity ratio (58.2%) is considered high.
Reducing Debt: MSFT's debt to equity ratio has increased from 35.6% to 58.2% over the past 5 years.
Debt Coverage: MSFT's debt is well covered by operating cash flow (87.2%).
Interest Coverage: MSFT earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Microsoft current dividend yield, its reliability and sustainability?
0.99%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: MSFT's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: MSFT's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (4.51%).
Stability and Growth of Payments
Stable Dividend: MSFT's dividends per share have been stable in the past 10 years.
Growing Dividend: MSFT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.8%), MSFT's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MSFT's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Satya Nadella (53yo)
6.42yrs
Tenure
US$42,910,215
Compensation
Mr. Satya Nadella is Chief Executive Officer and Director of Microsoft Corporation since February 2014. Before being named CEO in February 2014, he held leadership roles in both enterprise and consumer bus ...
CEO Compensation Analysis
Compensation vs Market: Satya's total compensation ($USD42.91M) is above average for companies of similar size in the US market ($USD11.50M).
Compensation vs Earnings: Satya's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.42yrs | US$42.91m | 0.016% $253.2m | |
| President & Chief Legal Officer | 4.83yrs | US$17.37m | 0.0099% $154.5m | |
| Executive VP & CFO | 7.17yrs | US$20.23m | 0.0047% $74.3m | |
| Executive VP and President of Microsoft Global Sales | 4yrs | US$15.08m | 0.011% $165.5m | |
| Executive Vice President of Business Development | 5.83yrs | US$10.43m | 0.0040% $63.2m | |
| Corporate VP of Finance & Administration and Chief Accounting Officer | no data | no data | 0.00074% $11.6m | |
| CTO and Executive VP of Technology & Research | 3.5yrs | no data | no data | |
| Chief Technology Officer | 1.75yrs | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| Corporate Vice President for Corporate Communications | 10.92yrs | no data | no data |
5.3yrs
Average Tenure
58yo
Average Age
Experienced Management: MSFT's management team is seasoned and experienced (5.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.42yrs | US$42.91m | 0.016% $253.2m | |
| Independent Director | 5.75yrs | US$325.00k | 0.00055% $8.6m | |
| Independent Chairman | 6.42yrs | US$552.50k | 0.00037% $5.8m | |
| Independent Director | 6yrs | US$355.00k | 0.0011% $16.9m | |
| Independent Director | 3.33yrs | US$325.00k | 0.00021% $3.3m | |
| Independent Director | 2.67yrs | US$340.00k | 0.00016% $2.5m | |
| Independent Director | 4.58yrs | US$325.00k | 0.000070% $1.1m | |
| Independent Director | 4.58yrs | US$325.00k | 0.00015% $2.3m | |
| Independent Director | 2.83yrs | US$351.00k | 0.000060% $938.5k | |
| Independent Director | 5.75yrs | US$355.00k | 0.000040% $625.7k |
5.2yrs
Average Tenure
58.5yo
Average Age
Experienced Board: MSFT's board of directors are considered experienced (5.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MSFT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Microsoft Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Microsoft Corporation
- Ticker: MSFT
- Exchange: NasdaqGS
- Founded: 1975
- Industry: Systems Software
- Sector: Software
- Market Cap: US$1.564t
- Shares outstanding: 7.58b
- Website: https://www.microsoft.com
Number of Employees
Location
- Microsoft Corporation
- One Microsoft Way
- Redmond
- Washington
- 98052
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MSFT | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Mar 1986 |
| MSFT | BVL (Bolsa de Valores de Lima) | Yes | Common Stock | PE | USD | Mar 1986 |
| MSFT * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Mar 1986 |
| MSF | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 1986 |
| 4338 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Common Stock | HK | HKD | Mar 1986 |
| MSFT | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Mar 1986 |
| MSF | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Mar 1986 |
| MSFT | BVC (Bolsa de Valores de Colombia) | Yes | Common Stock | CO | COP | Mar 1986 |
| MSFT | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Mar 1986 |
| 0QYP | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Mar 1986 |
| MS-U | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Mar 1986 |
| MSFT | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Mar 1986 |
| MSF | ENXTBR (Euronext Brussels) | Yes | Common Stock | BE | USD | Mar 1986 |
| US_MSFT | KAS (Kazakhstan Stock Exchange) | Yes | Common Stock | KZ | KZT | Mar 1986 |
| MSFT | BASE (Buenos Aires Stock Exchange) | CEDEARS EACH REP 1/5 ORD USD0.000025 | AR | ARS | Dec 1999 | |
| MSFT34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM SHS | BR | BRL | Dec 2011 |
Biography
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, as well as related Client Access Licenses (CAL); Skype, Outlook.com, and OneDrive; LinkedIn that includes Talent and marketing solutions, and subscriptions; and Dynamics 365, a set of cloud-based and on-premises business solutions for small and medium businesses, large organizations, and divisions of enterprises. Its Intelligent Cloud segment licenses SQL and Windows Servers, Visual Studio, System Center, and related CALs; GitHub that provides a collaboration platform and code hosting service for developers; and Azure, a cloud platform. It also provides support services and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions; and training and certification to developers and IT professionals on various Microsoft products. Its More Personal Computing segment offers Windows OEM licensing and other non-volume licensing of the Windows operating system; Windows Commercial, such as volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows Internet of Things; and MSN advertising. It also provides Microsoft Surface, PC accessories, and other devices; Gaming, including Xbox hardware, and Xbox software and services; video games and third-party video game royalties; and Search, including Bing and Microsoft advertising. It sells its products through distributors and resellers; and directly through digital marketplaces, online stores, and retail stores. It has strategic partnerships with Humana Inc., Nokia, Telkomsel, Swiss Re, Kubota Corporation, FedEx Corp., and Hitachi. The company was founded in 1975 and is headquartered in Redmond, Washington.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/02 23:49 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.