NasdaqGS:MSTR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

MicroStrategy Incorporated provides enterprise analytics software and services worldwide. More Details


Snowflake Analysis

Excellent balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has MicroStrategy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MSTR is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: MSTR's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

8.7%

MSTR

-2.3%

US Software

-0.9%

US Market


1 Year Return

293.9%

MSTR

38.5%

US Software

19.6%

US Market

Return vs Industry: MSTR exceeded the US Software industry which returned 39.4% over the past year.

Return vs Market: MSTR exceeded the US Market which returned 21% over the past year.


Shareholder returns

MSTRIndustryMarket
7 Day8.7%-2.3%-0.9%
30 Day93.3%-1.3%3.0%
90 Day251.0%1.3%11.5%
1 Year293.9%293.9%39.4%38.5%22.3%19.6%
3 Year310.0%310.0%124.9%117.8%45.3%35.7%
5 Year285.6%285.6%251.6%233.3%124.8%99.9%

Long-Term Price Volatility Vs. Market

How volatile is MicroStrategy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

2882.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MSTR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MSTR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MSTR is poor value based on its PE Ratio (2882.8x) compared to the US Software industry average (58.7x).

PE vs Market: MSTR is poor value based on its PE Ratio (2882.8x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MSTR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MSTR is overvalued based on its PB Ratio (13.8x) compared to the US Software industry average (9.6x).


Next Steps

Future Growth

How is MicroStrategy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.2%

Forecasted Software industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MSTR's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if MSTR's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if MSTR's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if MSTR's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MSTR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has MicroStrategy performed over the past 5 years?

-40.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSTR has a large one-off loss of $44.2M impacting its September 30 2020 financial results.

Growing Profit Margin: MSTR's current net profit margins (0.4%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: MSTR's earnings have declined by 40.5% per year over the past 5 years.

Accelerating Growth: MSTR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MSTR had negative earnings growth (-92.3%) over the past year, making it difficult to compare to the Software industry average (14.3%).


Return on Equity

High ROE: MSTR's Return on Equity (0.5%) is considered low.


Next Steps

Financial Health

How is MicroStrategy's financial position?


Financial Position Analysis

Short Term Liabilities: MSTR's short term assets ($218.4M) do not cover its short term liabilities ($243.7M).

Long Term Liabilities: MSTR's short term assets ($218.4M) exceed its long term liabilities ($139.9M).


Debt to Equity History and Analysis

Debt Level: MSTR is debt free.

Reducing Debt: MSTR has not had any debt for past 5 years.

Debt Coverage: MSTR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MSTR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is MicroStrategy current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MSTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MSTR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MSTR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MSTR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MSTR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Michael Saylor (55 yo)

31.17yrs

Tenure

US$1,070,232

Compensation

Mr. Michael J. Saylor has been the Chairman of the Board and Chief Executive Officer of MicroStrategy Inc. since November 1989 and had been its President since January 8, 2016 until July 2020. Previously, ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.07M) is below average for companies of similar size in the US market ($USD6.20M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Saylor
Chairman & CEO31.17yrsUS$1.07m21.17%
$ 1.1b
Phong Le
CFO & President0.50yrUS$6.81m0%
$ 0
Timothy Lang
CTO & Senior EVP6.17yrsUS$2.09m0%
$ 0
Wei-Ming Shao
Senior EVP6.08yrsUS$2.08m0.000050%
$ 2.7k
Jeanine Montgomery
Senior VP & Chief Accounting Officer0.50yrno datano data
Saurabh Abhyankar
Executive Vice President of Marketing1.17yrsno datano data
John Gray
Executive Vice President of Worldwide Alliances and Channels6.33yrsno datano data
Susan Cook
Executive Vice President of North American Sales6.25yrsno datano data
Vijay Anand
Vice President of Product Marketing and Enterprise Analyticsno datano datano data
Vasant Paranjpe
Senior Sales Engineerno datano datano data
Robert Davis
Vice President of Solution Managementno datano datano data
Rick Nelson
VP & General Manager of Public Sectorno datano datano data

6.1yrs

Average Tenure

51yo

Average Age

Experienced Management: MSTR's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Saylor
Chairman & CEO31.17yrsUS$1.07m21.17%
$ 1.1b
Carl Rickertsen
Independent Director18.25yrsUS$470.05k0.054%
$ 2.9m
Leslie Rechan
Independent Director2.83yrsUS$412.25k0.021%
$ 1.1m
Stephen Graham
Independent Director6.75yrsUS$445.81k0.0022%
$ 115.7k
Jarrod Patten
Independent Director16.17yrsUS$452.25k0%
$ 0

16.2yrs

Average Tenure

58yo

Average Age

Experienced Board: MSTR's board of directors are seasoned and experienced ( 16.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

MicroStrategy Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MicroStrategy Incorporated
  • Ticker: MSTR
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$5.357b
  • Shares outstanding: 9.27m
  • Website: https://www.microstrategy.com

Number of Employees


Location

  • MicroStrategy Incorporated
  • 1850 Towers Crescent Plaza
  • Tysons Corner
  • Virginia
  • 22182
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSTRNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJun 1998
MIGADB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 1998
MIGAXTRA (XETRA Trading Platform)YesClass A Common StockDEEURJun 1998

Biography

MicroStrategy Incorporated provides enterprise analytics software and services worldwide. It offers MicroStrategy 2020, an enterprise platform, which provides a modern analytics experience by delivering in...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 00:40
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.