Microsoft
Market Cap
US$2.0t
Last Updated
2021/06/20 23:52 UTC
Data Sources
Company Financials +
Executive Summary
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with proven track record 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MSFT's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.6%
MSFT
1.7%
US Software
-1.9%
US Market
1 Year Return
32.9%
MSFT
35.9%
US Software
38.2%
US Market
Return vs Industry: MSFT underperformed the US Software industry which returned 35.9% over the past year.
Return vs Market: MSFT underperformed the US Market which returned 38.2% over the past year.
Shareholder returns
| MSFT | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | 1.7% | -1.9% |
| 30 Day | 5.8% | 8.2% | 1.1% |
| 90 Day | 9.9% | 11.9% | 4.3% |
| 1 Year | 34.2%32.9% | 36.6%35.9% | 40.4%38.2% |
| 3 Year | 168.4%158.4% | 138.4%131.8% | 57.5%47.8% |
| 5 Year | 465.1%420.6% | 366.6%343.5% | 127.2%101.7% |
Long-Term 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
1 week ago | Simply Wall St
Microsoft (NASDAQ:MSFT) Could Easily Take On More Debt3 weeks ago | Simply Wall St
Are Investors Undervaluing Microsoft Corporation (NASDAQ:MSFT) By 24%?1 month ago | Simply Wall St
There's A Lot To Like About Microsoft's (NASDAQ:MSFT) Upcoming US$0.56 DividendValuation
Is Microsoft undervalued compared to its fair value and its price relative to the market?
18.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MSFT ($259.43) is trading below our estimate of fair value ($319.03)
Significantly Below Fair Value: MSFT is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MSFT is good value based on its PE Ratio (35x) compared to the US Software industry average (48.7x).
PE vs Market: MSFT is poor value based on its PE Ratio (35x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: MSFT is poor value based on its PEG Ratio (3.6x)
Price to Book Ratio
PB vs Industry: MSFT is overvalued based on its PB Ratio (14.5x) compared to the US Software industry average (7.7x).
Future Growth
How is Microsoft forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?
9.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MSFT's forecast earnings growth (9.8% per year) is above the savings rate (2%).
Earnings vs Market: MSFT's earnings (9.8% per year) are forecast to grow slower than the US market (15.7% per year).
High Growth Earnings: MSFT's earnings are forecast to grow, but not significantly.
Revenue vs Market: MSFT's revenue (11.6% per year) is forecast to grow faster than the US market (9.5% per year).
High Growth Revenue: MSFT's revenue (11.6% 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%)
Past Performance
How has Microsoft performed over the past 5 years?
26.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MSFT has high quality earnings.
Growing Profit Margin: MSFT's current net profit margins (35%) are higher than last year (33.4%).
Past Earnings Growth Analysis
Earnings Trend: MSFT's earnings have grown significantly by 26.9% per year over the past 5 years.
Accelerating Growth: MSFT's earnings growth over the past year (21.1%) is below its 5-year average (26.9% per year).
Earnings vs Industry: MSFT earnings growth over the past year (21.1%) underperformed the Software industry 31%.
Return on Equity
High ROE: MSFT's Return on Equity (41.6%) is considered outstanding.
Financial Health
How is Microsoft's financial position?
Financial Position Analysis
Short Term Liabilities: MSFT's short term assets ($165.6B) exceed its short term liabilities ($72.2B).
Long Term Liabilities: MSFT's short term assets ($165.6B) exceed its long term liabilities ($102.2B).
Debt to Equity History and Analysis
Debt Level: MSFT's debt to equity ratio (43.2%) is considered high.
Reducing Debt: MSFT's debt to equity ratio has reduced from 62.7% to 43.2% over the past 5 years.
Debt Coverage: MSFT's debt is well covered by operating cash flow (125.2%).
Interest Coverage: MSFT's interest payments on its debt are well covered by EBIT (272.2x coverage).
Balance Sheet
Dividend
What is Microsoft current dividend yield, its reliability and sustainability?
0.86%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: MSFT's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: MSFT's dividend (0.86%) is low compared to the top 25% of dividend payers in the US market (3.49%).
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 (29.6%), 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 (27.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Satya Nadella (53 yo)
7.33yrs
Tenure
US$44,321,788
Compensation
Mr. Satya Nadella is Chief Executive Officer and Director of Microsoft Corporation since February 2014 and has been its Chairman since June 2021. Before being named CEO in February 2014, he held leadership...
CEO Compensation Analysis
Compensation vs Market: Satya's total compensation ($USD44.32M) is above average for companies of similar size in the US market ($USD11.31M).
Compensation vs Earnings: Satya's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: MSFT's management team is seasoned and experienced (5.8 years average tenure).
Board Members
Experienced Board: MSFT's board of directors are considered experienced (4.9 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$1.954t
- Shares outstanding: 7.53b
- Website: https://www.microsoft.com
Number of Employees
Location
- Microsoft Corporation
- One Microsoft Way
- Redmond
- Washington
- 98052-6399
- United States
Listings
Biography
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft T...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/20 23:52 |
| End of Day Share Price | 2021/06/18 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/06/30 |
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.