| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 6/6 |
| Financial Health | 6/6 |
| Dividends | 4/6 |
MSFT Stock Overview
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.
Microsoft Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$336.63 |
| 52 Week High | US$349.67 |
| 52 Week Low | US$209.11 |
| Beta | 0.86 |
| 1 Month Change | 1.51% |
| 3 Month Change | 11.51% |
| 1 Year Change | 57.25% |
| 3 Year Change | 200.32% |
| 5 Year Change | 459.00% |
| Change since IPO | 54,519.44% |
Recent News & Updates
Insider Weekends: Satya Nadella Sells Half His Microsoft Shares
Corporate insiders rang the bell on the market almost three weeks ago with elevated levels of insider selling. A third insider of a trillion-dollar market cap company joined the selling spree last week with Microsoft CEO Satya Nadella selling almost exactly half of his shares over. Dustin Moskovitz bought $37 million worth of Asana stock last week.
Here's Why We Think Microsoft (NASDAQ:MSFT) Is Well Worth Watching
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
FAANG Leader Microsoft Is Banking On 4 Key Trends
Microsoft once again regained the title of the world's largest company by market capitalization. Microsoft Cloud's market share has nearly doubled within the last three years. The company’s revenue in fiscal Q1 2022 increased by 22% YoY to $45.3B, which beat the consensus estimates by 3%.
Shareholder Returns
| MSFT | US Software | US Market | |
|---|---|---|---|
| 7D | -0.9% | -0.4% | -0.9% |
| 1Y | 57.3% | 36.8% | 23.3% |
Return vs Industry: MSFT exceeded the US Software industry which returned 33.7% over the past year.
Return vs Market: MSFT exceeded the US Market which returned 21.3% over the past year.
Price Volatility
| MSFT volatility | |
|---|---|
| MSFT Average Weekly Movement | 2.8% |
| Software Industry Average Movement | 7.4% |
| Market Average Movement | 6.0% |
| 10% most volatile stocks in US Market | 15.0% |
| 10% least volatile stocks in US Market | 2.3% |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1975 | 181,000 | Satya Nadella | https://www.microsoft.com |
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, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions. Its Intelligent Cloud segment licenses SQL, 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.
Microsoft Fundamentals Summary
| MSFT fundamental statistics | |
|---|---|
| Market Cap | US$2.53t |
| Earnings (TTM) | US$67.88b |
| Revenue (TTM) | US$176.25b |
37.2x
P/E Ratio14.3x
P/S RatioIs MSFT overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MSFT income statement (TTM) | |
|---|---|
| Revenue | US$176.25b |
| Cost of Revenue | US$54.88b |
| Gross Profit | US$121.38b |
| Expenses | US$53.49b |
| Earnings | US$67.88b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 9.04 |
| Gross Margin | 68.86% |
| Net Profit Margin | 38.51% |
| Debt/Equity Ratio | 35.1% |
How did MSFT perform over the long term?
See historical performance and comparisonDividends
0.7%
Current Dividend Yield26%
Payout RatioValuation
Is Microsoft undervalued compared to its fair value and its price relative to the market?
14.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MSFT ($336.63) is trading below our estimate of fair value ($393.94)
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 (37.2x) compared to the US Software industry average (43.6x).
PE vs Market: MSFT is poor value based on its PE Ratio (37.2x) compared to the US market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: MSFT is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: MSFT is overvalued based on its PB Ratio (16.6x) compared to the US Software industry average (6.4x).
Future Growth
How is Microsoft forecast to perform in the next 1 to 3 years based on estimates from 38 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 (2%).
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 (12.5% per year) is forecast to grow faster than the US market (10.1% per year).
High Growth Revenue: MSFT's revenue (12.5% 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 (38.1%)
Past Performance
How has Microsoft performed over the past 5 years?
27.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MSFT has high quality earnings.
Growing Profit Margin: MSFT's current net profit margins (38.5%) are higher than last year (32.3%).
Past Earnings Growth Analysis
Earnings Trend: MSFT's earnings have grown significantly by 27.7% per year over the past 5 years.
Accelerating Growth: MSFT's earnings growth over the past year (42.9%) exceeds its 5-year average (27.7% per year).
Earnings vs Industry: MSFT earnings growth over the past year (42.9%) exceeded the Software industry 20.5%.
Return on Equity
High ROE: MSFT's Return on Equity (44.7%) is considered outstanding.
Financial Health
How is Microsoft's financial position?
Financial Position Analysis
Short Term Liabilities: MSFT's short term assets ($174.3B) exceed its short term liabilities ($80.5B).
Long Term Liabilities: MSFT's short term assets ($174.3B) exceed its long term liabilities ($102.9B).
Debt to Equity History and Analysis
Debt Level: MSFT has more cash than its total debt.
Reducing Debt: MSFT's debt to equity ratio has reduced from 106.6% to 35.1% over the past 5 years.
Debt Coverage: MSFT's debt is well covered by operating cash flow (153.8%).
Interest Coverage: MSFT's interest payments on its debt are well covered by EBIT (373.3x coverage).
Balance Sheet
Dividend
What is Microsoft current dividend yield, its reliability and sustainability?
0.74%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MSFT's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: MSFT's dividend (0.74%) is low compared to the top 25% of dividend payers in the US market (3.58%).
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 (25.5%), 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 (21.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.2yrs
Average management tenure
CEO
Satya Nadella (54 yo)
7.67yrs
Tenure
US$49,858,280
Compensation
Mr. Satya Nadella is Chief Executive Officer and Director of Microsoft Corporation since February 2014 and has been its Chairman since June 2021. Before being named CEO in February 2014, he held leadership...
CEO Compensation Analysis
Compensation vs Market: Satya's total compensation ($USD49.86M) is above average for companies of similar size in the US market ($USD11.11M).
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 (6.2 years average tenure).
Board Members
Experienced Board: MSFT's board of directors are considered experienced (4.4 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 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$2.527t
- Shares outstanding: 7.51b
- Website: https://www.microsoft.com
Number of Employees
Location
- Microsoft Corporation
- One Microsoft Way
- Redmond
- Washington
- 98052-6399
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/11/30 00:09 |
| End of Day Share Price | 2021/11/29 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/06/30 |
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.