Microsoft
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The last earnings update was 22 days ago. More info.
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MSFT Share Price and Events
7 Day Returns
1 Year Returns
MSFT Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Microsoft (MSFT) | 2.3% | 3.5% | 6.2% | 19.3% | 110% | 189% |
| US Software | 0.6% | 6.4% | 13.5% | 22.7% | 110.6% | 122.2% |
| US Market | 1.4% | 5.6% | 5.7% | 2.3% | 44.2% | 40.9% |
1 Year Return vs Industry and Market
- MSFT underperformed the Software industry which returned 22.7% over the past year.
- MSFT outperformed the Market in United States of America which returned 2.3% over the past year.
Value
Is Microsoft undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Microsoft
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Microsoft.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 31 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 11.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 7.3% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.12 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.117 (1 + (1- 21%) (10.18%)) |
1.206 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.21 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.206 * 7.27%) |
11.5% |
Discounted Cash Flow Calculation for NasdaqGS:MSFT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Microsoft is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 34,432.25 | 38,921.56 | 43,639.56 | 43,863.00 | 48,741.33 |
| Source | Analyst x17 | Analyst x19 | Analyst x9 | Analyst x3 | Analyst x3 |
|
Present Value Discounted (@ 11.5%) |
30,880.82 | 31,306.70 | 31,481.16 | 28,378.68 | 28,282.31 |
| Present value of next 5 years cash flows | $150,329.67 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $48,741.33 × (1 + 2.73%) ÷ (11.5% – 2.73%) |
$570,918.49 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $570,918.49 ÷ (1 + 11.5%)5 |
$331,277.17 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $150,329.67 + $331,277.17 |
$481,606.84 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $481,606.84 / 7,672.21 |
$62.77 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $62.77 |
| Current discount | Discount to share price of
$109.41
= -1 x ($109.41 - $62.77) / $62.77 |
-74.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Microsoft is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Microsoft's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Microsoft's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $4.36 |
| NasdaqGS:MSFT Share Price ** | NasdaqGS (2019-02-21) in USD | $109.41 |
| United States of America Software Industry PE Ratio | Median Figure of 78 Publicly-Listed Software Companies | 48.75x |
| United States of America Market PE Ratio | Median Figure of 3,045 Publicly-Listed Companies | 17.39x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Microsoft.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:MSFT Share Price ÷ EPS (both in USD) = 109.41 ÷ 4.36 |
25.07x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Microsoft is good value based on earnings compared to the US Software industry average.
- Microsoft is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Microsoft's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 25.07x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts |
11.1%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 63 Publicly-Listed Software Companies | 3.41x |
| United States of America Market PEG Ratio | Median Figure of 2,118 Publicly-Listed Companies | 1.44x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 25.07x ÷ 11.1% |
2.25x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Microsoft is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Microsoft's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $11.99 |
| NasdaqGS:MSFT Share Price * | NasdaqGS (2019-02-21) in USD | $109.41 |
| United States of America Software Industry PB Ratio | Median Figure of 218 Publicly-Listed Software Companies | 5.75x |
| United States of America Market PB Ratio | Median Figure of 5,129 Publicly-Listed Companies | 1.87x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:MSFT Share Price ÷ Book Value per Share (both in USD) = 109.41 ÷ 11.99 |
9.12x |
* Primary Listing of Microsoft.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Microsoft is overvalued based on assets compared to the US Software industry average.
Value checks
We assess Microsoft's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) Microsoft has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Microsoft expected to perform in the next 1 to 3 years based on estimates from 31 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Microsoft's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Microsoft's earnings growth is positive but not above the United States of America market average.
- Microsoft's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:MSFT Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts | 11.1% |
| NasdaqGS:MSFT Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 31 Analysts | 9.5% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 18.8% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 11.1% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 12.7% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 31 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | 184,041 | 77,796 | 55,436 | 1 |
| 2022-06-30 | 167,310 | 70,151 | 48,991 | 1 |
| 2021-06-30 | 151,712 | 64,025 | 42,865 | 15 |
| 2020-06-30 | 136,864 | 56,327 | 38,034 | 31 |
| 2019-06-30 | 124,060 | 50,020 | 34,084 | 29 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 118,459 | 46,126 | 33,541 |
| 2018-09-30 | 114,906 | 45,101 | 18,819 |
| 2018-06-30 | 110,360 | 43,884 | 16,571 |
| 2018-03-31 | 99,259 | 43,471 | 11,482 |
| 2017-12-31 | 102,273 | 41,980 | 13,829 |
| 2017-09-30 | 99,181 | 40,398 | 26,398 |
| 2017-06-30 | 96,571 | 39,507 | 25,489 |
| 2017-03-31 | 91,580 | 36,966 | 20,542 |
| 2016-12-31 | 88,899 | 36,673 | 18,812 |
| 2016-09-30 | 86,869 | 35,998 | 17,563 |
| 2016-06-30 | 91,154 | 33,325 | 20,539 |
| 2016-03-31 | 86,886 | 31,710 | 10,481 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 31 Analyst Estimates (S&P Global) | See Below |
All data from Microsoft Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | ||||
| 2022-06-30 | ||||
| 2021-06-30 | 5.63 | 6.30 | 4.95 | 11.00 |
| 2020-06-30 | 4.96 | 5.37 | 4.45 | 19.00 |
| 2019-06-30 | 4.40 | 4.53 | 4.32 | 14.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 4.36 |
| 2018-09-30 | 2.45 |
| 2018-06-30 | 2.15 |
| 2018-03-31 | 1.49 |
| 2017-12-31 | 1.79 |
| 2017-09-30 | 3.42 |
| 2017-06-30 | 3.29 |
| 2017-03-31 | 2.64 |
| 2016-12-31 | 2.41 |
| 2016-09-30 | 2.23 |
| 2016-06-30 | 2.59 |
| 2016-03-31 | 1.31 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Microsoft's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Microsoft has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Microsoft performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Microsoft's year on year earnings growth rate has been positive over the past 5 years.
- Microsoft's 1-year earnings growth exceeds its 5-year average (142.5% vs 1.4%)
- Microsoft's earnings growth has exceeded the US Software industry average in the past year (142.5% vs 26.2%).
Earnings and Revenue History
All data from Microsoft Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 118,459.00 | 33,541.00 | 22,541.00 | 15,695.00 |
| 2018-09-30 | 114,906.00 | 18,819.00 | 22,492.00 | 15,129.00 |
| 2018-06-30 | 110,360.00 | 16,571.00 | 22,223.00 | 14,726.00 |
| 2018-03-31 | 99,259.00 | 11,482.00 | 21,917.00 | 14,307.00 |
| 2017-12-31 | 102,273.00 | 13,829.00 | 20,235.00 | 13,202.00 |
| 2017-09-30 | 99,181.00 | 26,398.00 | 19,522.00 | 12,760.00 |
| 2017-06-30 | 96,571.00 | 25,489.00 | 18,807.00 | 12,292.00 |
| 2017-03-31 | 91,580.00 | 20,542.00 | 19,594.00 | 12,669.00 |
| 2016-12-31 | 88,899.00 | 18,812.00 | 19,066.00 | 12,294.00 |
| 2016-09-30 | 86,869.00 | 17,563.00 | 19,106.00 | 12,132.00 |
| 2016-06-30 | 91,154.00 | 20,539.00 | 19,198.00 | 11,988.00 |
| 2016-03-31 | 86,886.00 | 10,481.00 | 19,194.00 | 11,936.00 |
| 2015-12-31 | 88,084.00 | 11,710.00 | 19,448.00 | 11,940.00 |
| 2015-09-30 | 90,758.00 | 12,555.00 | 19,862.00 | 11,943.00 |
| 2015-06-30 | 93,580.00 | 12,193.00 | 20,324.00 | 12,046.00 |
| 2015-03-31 | 94,782.00 | 20,000.00 | 21,108.00 | 12,075.00 |
| 2014-12-31 | 93,456.00 | 20,675.00 | 21,016.00 | 11,834.00 |
| 2014-09-30 | 91,505.00 | 21,370.00 | 21,084.00 | 11,679.00 |
| 2014-06-30 | 86,833.00 | 22,074.00 | 20,488.00 | 11,381.00 |
| 2014-03-31 | 83,347.00 | 22,427.00 | 19,909.00 | 11,041.00 |
| 2013-12-31 | 83,433.00 | 22,822.00 | 19,918.00 | 10,938.00 |
| 2013-09-30 | 80,370.00 | 22,641.00 | 19,903.00 | 10,718.00 |
| 2013-06-30 | 77,849.00 | 21,863.00 | 19,556.00 | 10,411.00 |
| 2013-03-31 | 76,012.00 | 16,406.00 | 19,171.00 | 10,222.00 |
| 2012-12-31 | 72,930.00 | 15,459.00 | 19,018.00 | 10,099.00 |
| 2012-09-30 | 72,359.00 | 15,706.00 | 18,435.00 | 9,942.00 |
| 2012-06-30 | 73,723.00 | 16,978.00 | 18,426.00 | 9,811.00 |
| 2012-03-31 | 73,031.00 | 23,344.00 | 18,604.00 | 9,610.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Microsoft has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Microsoft used its assets more efficiently than the US Software industry average last year based on Return on Assets.
- Microsoft has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Microsoft's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Microsoft has a total score of 6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Microsoft's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Microsoft's finances.
The net worth of a company is the difference between its assets and liabilities.
- Microsoft is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Microsoft's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Microsoft Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 92,128.00 | 85,483.00 | 127,673.00 |
| 2018-09-30 | 85,967.00 | 87,928.00 | 135,771.00 |
| 2018-06-30 | 82,718.00 | 87,508.00 | 133,669.00 |
| 2018-03-31 | 79,239.00 | 88,621.00 | 132,273.00 |
| 2017-12-31 | 78,360.00 | 100,171.00 | 138,535.00 |
| 2017-09-30 | 89,647.00 | 95,971.00 | 133,611.00 |
| 2017-06-30 | 87,711.00 | 95,527.00 | 132,901.00 |
| 2017-03-31 | 69,729.00 | 85,995.00 | 121,576.00 |
| 2016-12-31 | 68,809.00 | 87,806.00 | 121,205.00 |
| 2016-09-30 | 70,372.00 | 75,932.00 | 136,789.00 |
| 2016-06-30 | 71,997.00 | 54,541.00 | 113,041.00 |
| 2016-03-31 | 74,806.00 | 46,767.00 | 105,338.00 |
| 2015-12-31 | 76,780.00 | 44,868.00 | 102,314.00 |
| 2015-09-30 | 77,445.00 | 38,721.00 | 99,277.00 |
| 2015-06-30 | 80,083.00 | 35,384.00 | 96,391.00 |
| 2015-03-31 | 90,132.00 | 31,964.00 | 95,288.00 |
| 2014-12-31 | 91,879.00 | 28,738.00 | 89,569.00 |
| 2014-09-30 | 90,170.00 | 23,911.00 | 88,721.00 |
| 2014-06-30 | 89,784.00 | 23,203.00 | 85,146.00 |
| 2014-03-31 | 87,424.00 | 23,473.00 | 87,674.00 |
| 2013-12-31 | 85,100.00 | 23,724.00 | 83,135.00 |
| 2013-09-30 | 81,641.00 | 16,525.00 | 79,934.00 |
| 2013-06-30 | 78,944.00 | 16,290.00 | 76,410.00 |
| 2013-03-31 | 76,688.00 | 14,765.00 | 73,788.00 |
| 2012-12-31 | 72,576.00 | 14,218.00 | 68,098.00 |
| 2012-09-30 | 68,836.00 | 12,374.00 | 66,072.00 |
| 2012-06-30 | 66,363.00 | 12,775.00 | 62,044.00 |
| 2012-03-31 | 68,659.00 | 13,148.00 | 58,348.00 |
- Microsoft's level of debt (92.8%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (27.9% vs 92.8% today).
- Debt is well covered by operating cash flow (54%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 344.1x coverage).
Financial health checks
We assess Microsoft's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Microsoft has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Microsoft's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Microsoft
shares you are expected to receive
$34
in your first year as a dividend.
Dividend Amount
- Microsoft's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
- Microsoft's dividend is below the markets top 25% of dividend payers in United States of America (3.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 31 Analyst Estimates (S&P Global) | See Below |
| United States of America Software Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2001 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-06-30 | ||
| 2022-06-30 | ||
| 2021-06-30 | 2.10 | 9.00 |
| 2020-06-30 | 1.93 | 12.00 |
| 2019-06-30 | 1.80 | 12.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-11-28 | 1.840 | 1.753 |
| 2018-09-18 | 1.840 | 1.687 |
| 2018-06-13 | 1.680 | 1.585 |
| 2018-03-13 | 1.680 | 1.764 |
| 2017-11-29 | 1.680 | 1.885 |
| 2017-09-19 | 1.680 | 2.118 |
| 2017-06-14 | 1.560 | 2.158 |
| 2017-03-14 | 1.560 | 2.310 |
| 2016-12-01 | 1.560 | 2.465 |
| 2016-09-20 | 1.560 | 2.651 |
| 2016-06-15 | 1.440 | 2.615 |
| 2016-03-15 | 1.440 | 2.739 |
| 2015-12-03 | 1.440 | 2.721 |
| 2015-09-15 | 1.440 | 2.912 |
| 2015-06-09 | 1.240 | 2.743 |
| 2015-03-11 | 1.240 | 2.788 |
| 2014-12-04 | 1.240 | 2.762 |
| 2014-09-16 | 1.240 | 2.654 |
| 2014-06-10 | 1.120 | 2.570 |
| 2014-03-11 | 1.120 | 2.803 |
| 2013-11-20 | 1.120 | 3.016 |
| 2013-09-17 | 1.120 | 3.214 |
| 2013-06-12 | 0.920 | 2.779 |
| 2013-03-11 | 0.920 | 2.943 |
| 2012-11-29 | 0.920 | 3.364 |
| 2012-09-18 | 0.920 | 3.193 |
| 2012-06-13 | 0.800 | 2.649 |
| 2012-03-13 | 0.800 | 2.593 |
| 2011-12-14 | 0.800 | 2.749 |
| 2011-09-20 | 0.800 | 3.075 |
| 2011-06-15 | 0.640 | 2.473 |
| 2011-03-14 | 0.640 | 2.545 |
| 2010-12-15 | 0.640 | 2.326 |
| 2010-09-21 | 0.640 | 2.484 |
| 2010-06-17 | 0.520 | 2.096 |
| 2010-03-09 | 0.520 | 1.818 |
| 2009-12-09 | 0.520 | 1.765 |
| 2009-09-18 | 0.520 | 1.887 |
| 2009-06-10 | 0.520 | 2.178 |
| 2009-03-09 | 0.520 | 2.706 |
| 2009-02-23 | 0.520 | 3.231 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Microsoft's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.5x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
Income/ dividend checks
We assess Microsoft's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Microsoft afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Microsoft has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $25,843,263 |
| AGE | 51 |
| TENURE AS CEO | 5 years |
CEO Bio
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 businesses across the Company. He has held various leadership positions at Microsoft since joining Microsoft in 1992, including Executive Vice President of Cloud and Enterprise from July 2013 to February 2014; President of Server and Tools from 2011 to 2013; Senior Vice President of Online Services Division from 2009 to 2011; and Senior Vice President of Search, Portal, and Advertising from 2008 to 2009. Mr. Nadella’s roles also included Vice President of the Microsoft Business Division. He has been a Director of Starbucks Corp since March 22, 2017. Before joining Microsoft, he was a Member of the Technology Staff at Sun Microsystems. He earned a bachelor’s degree in electrical engineering from Mangalore University, a master’s degree in computer science from the University of Wisconsin – Milwaukee and a master’s degree in business administration from the University of Chicago. He serves as a Trustee of Fred Hutchinson Cancer Research Center. Mr. Nadella served as a Director of Riverbed Technology, Inc.
CEO Compensation
- Satya's compensation has increased by more than 20% in the past year.
- Satya's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Microsoft management team in years:
- The tenure for the Microsoft management team is about average.
Management Team
Satya Nadella
CEO & Director
$26M
51
5 yrs
Brad Smith
President & Chief Legal Officer
$14M
59
3.4 yrs
Bill Gates
Co-Founder
63
Amy Hood
Executive VP & CFO
$15M
46
5.8 yrs
Jean-Philippe Courtois
Executive VP and President of Microsoft Global Sales
$11M
57
2.6 yrs
Peggy Johnson
Executive Vice President of Business Development
$9M
56
4.4 yrs
Frank Brod
Corporate VP of Finance & Administration and Chief Accounting Officer
63
J. Scott
CTO & Executive VP
45
2.1 yrs
Nick Coleman
Chief Technology Officer
0.3 yrs
Vikas Mehta
Director of Investor Relations
Board of Directors Tenure
Average tenure and age of the Microsoft board of directors in years:
- The tenure for the Microsoft board of directors is about average.
Board of Directors
John Thompson
Independent Chairman
$690K
69
5 yrs
Satya Nadella
CEO & Director
$26M
51
5 yrs
Bill Gates
Co-Founder
63
38.1 yrs
Chuck Noski
Director
$370K
66
15.3 yrs
Helmut Gunter Panke
Director
$358K
72
15.3 yrs
John Stanton
Independent Director
$355K
63
4.6 yrs
Teri List-Stoll
Director
$355K
55
4.3 yrs
Charlie Scharf
Director
$325K
53
4.3 yrs
Sandi Peterson
Director
$355K
59
3.2 yrs
Padmasree Warrior
Director
$325K
57
3.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 19. Feb 19 | Sell | Jean-Philippe Courtois | Individual | 15. Feb 19 | 15. Feb 19 | -28,147 | $108.14 | $-3,043,757 | ||
| 11. Dec 18 | Sell | Christopher Capossela | Individual | 10. Dec 18 | 10. Dec 18 | -4,000 | $105.50 | $-422,000 | ||
| 07. Dec 18 | Sell | Christopher Capossela | Individual | 06. Dec 18 | 06. Dec 18 | -4,000 | $108.00 | $-432,000 | ||
| 05. Dec 18 | Sell | Christopher Capossela | Individual | 03. Dec 18 | 03. Dec 18 | -10,000 | $111.77 | $-1,117,660 | ||
| 09. Nov 18 | Sell | Kathleen Hogan | Individual | 08. Nov 18 | 08. Nov 18 | -36,500 | $111.28 | $-4,061,866 | ||
| 06. Nov 18 | Sell | Frank Brod | Individual | 05. Nov 18 | 05. Nov 18 | -2,000 | $107.18 | $-214,363 | ||
| 01. Nov 18 | Sell | Frank Brod | Individual | 31. Oct 18 | 31. Oct 18 | -20,000 | $107.70 | $-2,153,900 | ||
| 10. Sep 18 | Sell | Christopher Capossela | Individual | 07. Sep 18 | 10. Sep 18 | -59,162 | $109.22 | $-6,431,596 | ||
| 05. Sep 18 | Sell | Amy Hood | Individual | 04. Sep 18 | 04. Sep 18 | -118,000 | $110.90 | $-13,086,766 | ||
| 05. Sep 18 | Sell | Kathleen Hogan | Individual | 04. Sep 18 | 04. Sep 18 | -40,000 | $111.31 | $-4,452,400 | ||
| 10. Aug 18 | Sell | Satya Nadella | Individual | 10. Aug 18 | 10. Aug 18 | -328,000 | $109.44 | $-35,896,189 | ||
| 10. Aug 18 | Sell | Jean-Philippe Courtois | Individual | 09. Aug 18 | 09. Aug 18 | -28,939 | $110.00 | $-3,183,290 | ||
| 08. Aug 18 | Sell | Jean-Philippe Courtois | Individual | 07. Aug 18 | 07. Aug 18 | -28,941 | $109.00 | $-3,154,569 | ||
| 06. Aug 18 | Sell | Margaret Johnson | Individual | 02. Aug 18 | 02. Aug 18 | -47,000 | $107.67 | $-5,060,565 | ||
| 08. Jun 18 | Sell | Christopher Capossela | Individual | 07. Jun 18 | 07. Jun 18 | -10,000 | $100.99 | $-1,009,880 | ||
| 06. Jun 18 | Buy | Sandra Peterson | Individual | 05. Jun 18 | 05. Jun 18 | 5,400 | $101.96 | $550,606 | ||
| 26. Feb 18 | Sell | Christopher Capossela | Individual | 23. Feb 18 | 23. Feb 18 | -3,500 | $93.00 | $-325,500 | ||
Management checks
We assess Microsoft's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Microsoft has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Microsoft Corporation (NASDAQ:MSFT): Ex-Dividend Is In 2 Days
Microsoft Corporation (NASDAQ:MSFT) will be distributing its dividend of US$0.46 per share on the 14 March 2019, and will start trading ex-dividend in 2 days time on the 20 February 2019. … 5 questions to ask before buying a dividend stock? … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?
Simply Wall St - – Full articleShould You Worry About Microsoft Corporation's (NASDAQ:MSFT) CEO Pay Cheque?
This analysis aims first to contrast CEO compensation with other large companies. … And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. … How Does Satya Nadella's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleCan Microsoft Corporation (NASDAQ:MSFT) Maintain Its Strong Returns?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Microsoft has a return on equity of 22% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleMicrosoft Corporation (NASDAQ:MSFT) Has Attractive Fundamentals
Microsoft Corporation (NASDAQ:MSFT) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … that has been able to sustain great financial health over the past
Simply Wall St - – Full articleHave Insiders Been Selling Microsoft Corporation (NASDAQ:MSFT) Shares This Year?
So we'll take a look at whether insiders have been buying or selling shares in Microsoft Corporation (NASDAQ:MSFT). … That means that an insider was selling shares at around the current price of US$97.40. … Over the last year we saw more insider selling of Microsoft shares, than buying
Simply Wall St - – Full articleIs Microsoft Corporation (NASDAQ:MSFT) A Financially Sound Company?
its financial health remains the key to continued success. … Let’s take a look at Microsoft’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further
Simply Wall St - – Full articleMicrosoft Corporation (NASDAQ:MSFT) Earns A Nice Return On Capital Employed
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Simply Wall St - – Full articleWhat Is Microsoft Corporation's (NASDAQ:MSFT) Share Price Doing?
received a lot of attention from a substantial price movement on the NasdaqGS over the last few months, increasing to $115.61 at one point, and dropping to the lows of $101.71. … A question to answer is whether Microsoft's current trading price of $110.19 reflective of the actual value of the? … Let’s take a look at Microsoft’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleIs Microsoft Corporation's (NASDAQ:MSFT) P/E Ratio Really That Good?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Microsoft Corporation's (NASDAQ:MSFT) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhat Are Analysts Saying About The Future Of Microsoft Corporation's (NASDAQ:MSFT)?
On 30 September 2018, Microsoft Corporation (NASDAQ:MSFT) announced its earnings update. … analyst consensus outlook appear vastly optimistic, … as a 89% rise in profits is expected in the upcoming year,
Simply Wall St - – Full articleCompany Info
Map
Description
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its company’s Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, such as Office, Exchange, SharePoint, Skype for Business, Microsoft Teams, and related Client Access Licenses (CALs); Office 365 consumer services, including Skype, Outlook.com, and OneDrive; LinkedIn online professional network; and Dynamics business solutions comprising financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and medium businesses, large organizations, and divisions of enterprises. The company’s Intelligent Cloud segment licenses server products and cloud services, such as SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure, a cloud platform; and enterprise services, including premier support and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions, as well as provides training and certification to developers and IT professionals on Microsoft products. Its More Personal Computing segment offers Windows OEM, volume, and other non-volume licensing of the Windows operating system; patent licensing, Windows Internet of Things, and MSN display advertising; devices comprising Surface, PC accessories, and other intelligent devices; Xbox hardware and software and services; and Bing and Bing Ads search advertising. The company markets its products through original equipment manufacturers, distributors, and resellers; and online and Microsoft retail stores. Microsoft Corporation has collaboration with E.ON; strategic alliance with Nielsen Holdings plc and PAREXEL International Corp.; and a strategic collaboration with Mastercard Incorporated. The company was founded in 1975 and is headquartered in Redmond, Washington.
Details
| Name: | Microsoft Corporation |
| MSFT | |
| Exchange: | NasdaqGS |
| Founded: | 1975 |
| $839,416,873,126 | |
| 7,672,213,446 | |
| Website: | http://www.microsoft.com |
| Address: |
Microsoft Corporation One Microsoft Way, Redmond, Washington, 98052, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | MSFT | Common Stock | Nasdaq Global Select | US | USD | 13. Mar 1986 | |
| DB | MSF | Common Stock | Deutsche Boerse AG | DE | EUR | 13. Mar 1986 | |
| XTRA | MSF | Common Stock | XETRA Trading Platform | DE | EUR | 13. Mar 1986 | |
| SWX | MSFT | Common Stock | SIX Swiss Exchange | CH | CHF | 13. Mar 1986 | |
| SEHK | 4338 | Common Stock | The Stock Exchange of Hong Kong Ltd. | HK | HKD | 13. Mar 1986 | |
| ENXTBR | MSF | Common Stock | Euronext Brussels | BE | USD | 13. Mar 1986 | |
| WBAG | MSFT | Common Stock | Wiener Boerse AG | AT | EUR | 13. Mar 1986 | |
| SNSE | MSFT | Common Stock | Santiago Stock Exchange | CL | USD | 13. Mar 1986 | |
| BVC | MSFT | Common Stock | Bolsa de Valores de Colombia | CO | COP | 13. Mar 1986 | |
| BMV | MSFT * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 13. Mar 1986 | |
| BOVESPA | MSFT34 | BDR EACH REPR 1 COM SHS | Bolsa de Valores de Sao Paulo | BR | BRL | 21. Dec 2011 | |
| BASE | MSFT | CEDEARS EACH REP 1/5 ORD USD0.000025 | Buenos Aires Stock Exchange | AR | ARS | 22. Dec 1999 |
Number of employees
Current staff
Industry
| Systems Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/21 23:42 |
| End of day share price update: | 2019/02/21 00:00 |
| Last estimates confirmation: | 2019/02/21 |
| Last earnings filing: | 2019/01/30 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
