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MSFT

MicrosoftNasdaqGS:MSFT Stock Report

Last Price

US$296.03

Market Cap

US$2.2t

7D

-4.6%

1Y

31.0%

Updated

21 Jan, 2022

Data

Company Financials +
MSFT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance6/6
Financial Health6/6
Dividends4/6

MSFT Stock Overview

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.

Microsoft Competitors

Oracle

NYSE:ORCL

US$219.6b

ServiceNow

NYSE:NOW

US$101.0b

VMware

NYSE:VMW

US$52.0b

Fortinet

NasdaqGS:FTNT

US$47.2b

Price History & Performance

Summary of all time highs, changes and price drops for Microsoft
Historical stock prices
Current Share PriceUS$296.03
52 Week HighUS$349.67
52 Week LowUS$224.22
Beta0.86
1 Month Change-11.16%
3 Month Change-4.25%
1 Year Change31.02%
3 Year Change176.23%
5 Year Change350.03%
Change since IPO47,931.94%

Recent News & Updates

Jan 19
Microsoft's (NASDAQ:MSFT) Gigantic Acquisition is Fueling the K-shaped Tech Performance

Microsoft's (NASDAQ:MSFT) Gigantic Acquisition is Fueling the K-shaped Tech Performance

M&A activity is undoubtedly heating up as Microsoft Corporation (NASDAQ: MSFT) is pursuing its most significant acquisition so far. A US$69b buyout of Activision Blizzard will make it one of the largest gaming companies. Yet, the move of this magnitude is not without concerns, as the cross-platform competition draws scrutiny from the regulators.

Jan 18

Microsoft: Ultimate Definition Of An Economic Moat

Microsoft is the whole package deal, encompassing past (technology leader since 80s), present (net income of $68 B), and future (metaverse, AI, etc.). Economic moat is about as wide as it gets. When is the last time you turned on a computer and expected something other than a Windows logo to show up? Their revenue is still growing at 13% (5-year average) 40 years after DOS, and there are multiple tailwinds that can accelerate the growth. I expect 15-25% upside from the current level.

Jan 16
Microsoft (NASDAQ:MSFT) Knows How To Allocate Capital Effectively

Microsoft (NASDAQ:MSFT) Knows How To Allocate Capital Effectively

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Jan 12

Microsoft: Possibly A Bearish Sign - Part 2

It is rational to assume that the price of a company should grow in harmony with its ability to generate free cash flow. In the case of Microsoft, the free cash flow yield has been declining since 2013 and this cannot be explained simply by a decline in the cost of investment capital. Perhaps, Microsoft's price has somewhat detached from its rational value.

Jan 05
Microsoft's (NASDAQ:MSFT) Growth Can Hide the Broad Market Slowdown

Microsoft's (NASDAQ:MSFT) Growth Can Hide the Broad Market Slowdown

Few companies have succeeded in revitalizing their brand, like Microsoft Corporation (NASDAQ: MSFT). Years ago, its brand perception was more aligned with established industrial stocks than IT growth companies. Yet, it delivered a multi-bagger performance just in the last few years. However, at this point, it is so big that it can hide a lot of weakness in the broad market.

Shareholder Returns

MSFTUS SoftwareUS Market
7D-4.6%-5.5%-6.1%
1Y31.0%6.1%4.2%

Return vs Industry: MSFT exceeded the US Software industry which returned 9.6% over the past year.

Return vs Market: MSFT exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is MSFT's price volatile compared to industry and market?
MSFT volatility
MSFT Average Weekly Movement3.6%
Software Industry Average Movement8.6%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: MSFT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MSFT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1975181,000Satya Nadellahttps://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

How do Microsoft's earnings and revenue compare to its market cap?
MSFT fundamental statistics
Market CapUS$2.22t
Earnings (TTM)US$67.88b
Revenue (TTM)US$176.25b

32.7x

P/E Ratio

12.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MSFT income statement (TTM)
RevenueUS$176.25b
Cost of RevenueUS$54.88b
Gross ProfitUS$121.38b
ExpensesUS$53.49b
EarningsUS$67.88b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 25, 2022

Earnings per share (EPS)9.04
Gross Margin68.86%
Net Profit Margin38.51%
Debt/Equity Ratio35.1%

How did MSFT perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

26%

Payout Ratio

Does MSFT pay a reliable dividends?

See MSFT dividend history and benchmarks
When do you need to buy MSFT by to receive an upcoming dividend?
Microsoft dividend dates
Ex Dividend DateFeb 16 2022
Dividend Pay DateMar 10 2022
Days until Ex dividend25 days
Days until Dividend pay date47 days

Does MSFT pay a reliable dividends?

See MSFT dividend history and benchmarks

Valuation

Is Microsoft undervalued compared to its fair value and its price relative to the market?

25.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MSFT ($296.03) is trading below our estimate of fair value ($397.92)

Significantly Below Fair Value: MSFT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MSFT is good value based on its PE Ratio (32.7x) compared to the US Software industry average (41.9x).

PE vs Market: MSFT is poor value based on its PE Ratio (32.7x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: MSFT is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: MSFT is overvalued based on its PB Ratio (14.6x) compared to the US Software industry average (4.9x).


Future Growth

How is Microsoft forecast to perform in the next 1 to 3 years based on estimates from 42 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSFT's forecast earnings growth (10.8% per year) is above the savings rate (2%).

Earnings vs Market: MSFT's earnings (10.8% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: MSFT's earnings are forecast to grow, but not significantly.

Revenue vs Market: MSFT's revenue (12.3% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: MSFT's revenue (12.3% 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 (36.1%)


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?

0.84%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 22 2022Ex Dividend DateFeb 16 2022Dividend Pay DateMar 10 202222 days from Ex DividendBuy in the next 25 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: MSFT's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: MSFT's dividend (0.84%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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 (20.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Satya Nadella (54 yo)

7.92yrs

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 ($USD49.86M) is above average for companies of similar size in the US market ($USD11.42M).

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 (6.3 years average tenure).


Board Members

Experienced Board: MSFT's board of directors are considered experienced (6.1 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
  • Implied Market Cap: US$2.223t
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:33
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/06/30


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.