Microsoft
Market Cap
US$1.3t
Last Updated
2020/01/20 23:43 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.3%
MSFT
1.7%
US Software
1.2%
US Market
1 Year Return
55.1%
MSFT
40.0%
US Software
24.2%
US Market
Return vs Industry: MSFT exceeded the US Software industry which returned 39.8% over the past year.
Return vs Market: MSFT exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| MSFT | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 1.7% | 1.2% |
| 30 Day | 6.2% | 6.5% | 3.5% |
| 90 Day | 22.5% | 21.0% | 11.7% |
| 1 Year | 57.4%55.1% | 41.2%40.0% | 26.9%24.2% |
| 3 Year | 180.1%165.4% | 143.7%134.0% | 53.0%43.2% |
| 5 Year | 295.9%255.5% | 201.4%179.9% | 75.3%56.0% |
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
4 days ago | Simply Wall St
Does Microsoft (NASDAQ:MSFT) Deserve A Spot On Your Watchlist?1 week ago | Simply Wall St
Should You Worry About Microsoft Corporation's (NASDAQ:MSFT) CEO Salary Level?3 weeks ago | Simply Wall St
Microsoft Corporation (NASDAQ:MSFT) Vies For A Place In Your Dividend Portfolio: Here's WhyValuation
Is Microsoft undervalued compared to its fair value and its price relative to the market?
31.16x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MSFT ($162.13) is trading above our estimate of fair value ($156.06)
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 (30.2x) compared to the Software industry average (47.3x).
PE vs Market: MSFT is poor value based on its PE Ratio (30.2x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: MSFT is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: MSFT is overvalued based on its PB Ratio (11.7x) compared to the US Software industry average (5.9x).
Next Steps
Future Growth
How is Microsoft forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?
10.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MSFT's forecast earnings growth (10.9% per year) is above the savings rate (1.7%).
Earnings vs Market: MSFT's earnings (10.9% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: MSFT's earnings are forecast to grow, but not significantly.
Revenue vs Market: MSFT's revenue (10.4% per year) is forecast to grow faster than the US market (7.5% per year).
High Growth Revenue: MSFT's revenue (10.4% 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 (36.5%)
Next Steps
Past Performance
How has Microsoft performed over the past 5 years?
17.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MSFT has high quality earnings.
Growing Profit Margin: MSFT's current net profit margins (31.7%) are higher than last year (16.4%).
Past Earnings Growth Analysis
Earnings Trend: MSFT's earnings have grown by 17.4% per year over the past 5 years.
Accelerating Growth: MSFT's earnings growth over the past year (118.4%) exceeds its 5-year average (17.4% per year).
Earnings vs Industry: MSFT earnings growth over the past year (118.4%) exceeded the Software industry 20.8%.
Return on Equity
High ROE: MSFT's Return on Equity (38.7%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Microsoft's financial position?
Financial Position Analysis
Short Term Liabilities: MSFT's short term assets ($165.9B) exceed its short term liabilities ($58.1B).
Long Term Liabilities: MSFT's short term assets ($165.9B) exceed its long term liabilities ($114.8B).
Debt to Equity History and Analysis
Debt Level: MSFT's debt to equity ratio (65.5%) is considered high.
Reducing Debt: MSFT's debt to equity ratio has increased from 26.6% to 65.5% over the past 5 years.
Debt Coverage: MSFT's debt is well covered by operating cash flow (75.3%).
Interest Coverage: MSFT earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: MSFT has a low level of unsold assets or inventory.
Debt Coverage by Assets: MSFT's debt is covered by short term assets (assets are 2.4x debt).
Next Steps
Dividend
What is Microsoft's current dividend yield, its reliability and sustainability?
1.22%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Microsoft before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MSFT's dividend (1.26%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: MSFT's dividend (1.26%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 (35.2%), 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 (31.7% payout ratio).
Next Steps
Management
What is the CEO of Microsoft's salary, the management and board of directors tenure and is there insider trading?
4.3yrs
Average management tenure
CEO
Satya Nadella (52yo)
5.9yrs
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 ($USD10.76M).
Compensation vs Earnings: Satya's compensation has increased by more than 20% in the past year.
Management Age and Tenure
4.3yrs
Average Tenure
57.5yo
Average Age
Experienced Management: MSFT's management team is considered experienced (4.3 years average tenure).
Board Age and Tenure
5.3yrs
Average Tenure
59yo
Average Age
Experienced Board: MSFT's board of directors are considered experienced (5.3 years average tenure).
Insider Trading
Insider Buying: MSFT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President of Business Development |
| Shares | 35,000 |
| Max Price | US$150.01 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | US$144.77 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$144.75 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | US$144.66 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP and President of Microsoft Global Sales |
| Shares | 24,419 |
| Max Price | US$145.06 |
| Entity | Individual |
| Shares | 9,000 |
| Max Price | US$135.58 |
| Entity | Individual |
| Shares | 40,000 |
| Max Price | US$135.25 |
| Entity | Individual |
| Shares | 18,500 |
| Max Price | US$140.10 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 123,769 |
| Max Price | US$137.26 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP and President of Microsoft Global Sales |
| Shares | 11,779 |
| Max Price | US$140.00 |
| Entity | Individual |
| Shares | 12,500 |
| Max Price | US$139.36 |
| Entity | Individual |
| Shares | 7,000 |
| Max Price | US$138.15 |
| Entity | Individual |
| Shares | 3,500 |
| Max Price | US$138.00 |
| Entity | Individual |
| Shares | 3,372 |
| Max Price | US$138.06 |
| Entity | Individual |
| Role | Chief Accounting Officer Corporate VP of Finance & Administration and Chief Accounting Officer |
| Shares | 4,000 |
| Max Price | US$141.05 |
| Entity | Individual |
| Shares | 15,947 |
| Max Price | US$133.17 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$126.34 |
| Entity | Individual |
| Shares | 3,000 |
| Max Price | US$128.87 |
| Entity | Individual |
| Role | President President & Chief Legal Officer |
| Shares | 192,300 |
| Max Price | US$130.34 |
| Entity | Individual |
| Shares | 10,500 |
| Max Price | US$112.41 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP and President of Microsoft Global Sales |
| Shares | 28,147 |
| Max Price | US$108.14 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Frank Brod (64yo)
Corporate VP of Finance & Administration and Chief Accounting Officer
Bill Gates (64yo)
Co-Founder
- Tenure: 39yrs
Jean-Philippe Courtois (58yo)
Executive VP and President of Microsoft Global Sales
- Tenure: 3.5yrs
- Compensation: US$15.08m
Satya Nadella (52yo)
CEO & Director
- Tenure: 5.9yrs
- Compensation: US$42.91m
Brad Smith (60yo)
President & Chief Legal Officer
- Tenure: 4.3yrs
- Compensation: US$17.37m
Peggy Johnson (57yo)
Executive Vice President of Business Development
- Tenure: 5.3yrs
- Compensation: US$10.43m
Amy Hood (47yo)
Executive VP & CFO
- Tenure: 6.7yrs
- Compensation: US$20.23m
J. Scott (46yo)
CTO & Executive VP
- Tenure: 3yrs
Vikas Mehta
Director of Investor Relations
Nick Coleman
Chief Technology Officer
- Tenure: 1.3yrs
Board Members
Charlie Scharf (54yo)
Independent Director
- Tenure: 5.3yrs
- Compensation: US$325.00k
Bill Gates (64yo)
Co-Founder
- Tenure: 39yrs
John Thompson (70yo)
Independent Chairman
- Tenure: 5.9yrs
- Compensation: US$552.50k
John Stanton (64yo)
Independent Director
- Tenure: 5.5yrs
- Compensation: US$355.00k
Penny Pritzker (60yo)
Independent Director
- Tenure: 2.2yrs
- Compensation: US$340.00k
Sandi Peterson (60yo)
Independent Director
- Tenure: 4.1yrs
- Compensation: US$325.00k
Satya Nadella (52yo)
CEO & Director
- Tenure: 5.9yrs
- Compensation: US$42.91m
Padmasree Warrior (58yo)
Independent Director
- Tenure: 4.1yrs
- Compensation: US$325.00k
Hugh Johnston (57yo)
Independent Director
- Tenure: 2.3yrs
- Compensation: US$351.00k
Teri List-Stoll (56yo)
Independent Director
- Tenure: 5.3yrs
- Compensation: US$355.00k
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$1.275t
- Shares outstanding: 7.63b
- 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 |
| US_MSFT | KAS (Kazakhstan Stock Exchange) | Yes | Common Stock | KZ | KZT | 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 |
| MSF | ENXTBR (Euronext Brussels) | Yes | Common Stock | BE | USD | 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 |
| MS-U | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Mar 1986 |
| MSFT | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | 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. The company’s 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); and Skype, Outlook.com, and OneDrive. It also provides 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. The company’s 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. The company’s More Personal Computing segment offers Windows OEM licensing and other non-volume licensing of the Windows operating system; Windows Commercial comprising 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 intelligent 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. The company sells its products through distributors and resellers; and directly through digital marketplaces, online stores, and retail stores. It has strategic partnerships with Humana Inc. and Nokia. 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 | 2020/01/20 23:43 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| 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.