NasdaqGS:MSTR

Stock Analysis Report

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Market Cap

US$5.0b

Last Updated

2021/06/13 23:09 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Weak fundamentals or lack of information.


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 +/- 12% a week.

Volatility Over Time: MSTR's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

6.6%

MSTR

3.5%

US Software

0.8%

US Market


1 Year Return

337.6%

MSTR

41.2%

US Software

44.4%

US Market

Return vs Industry: MSTR exceeded the US Software industry which returned 41.2% over the past year.

Return vs Market: MSTR exceeded the US Market which returned 44.3% over the past year.


Shareholder returns

MSTRIndustryMarket
7 Day6.6%3.5%0.8%
30 Day-0.9%7.4%3.0%
90 Day-32.8%7.6%4.4%
1 Year337.6%337.6%42.1%41.2%46.7%44.4%
3 Year283.3%283.3%128.2%121.6%60.3%50.4%
5 Year188.2%188.2%326.7%304.2%128.3%102.8%

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?

13.79x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MSTR ($516.44) is trading above our estimate of fair value ($477.84)

Significantly Below Fair Value: MSTR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MSTR is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: MSTR is unprofitable, so we can't compare its PE Ratio to the US market.


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 (7.9x).


Future Growth

How is MicroStrategy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

130.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSTR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MSTR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MSTR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MSTR's revenue (6.2% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: MSTR's revenue (6.2% per year) is forecast to grow slower 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


Past Performance

How has MicroStrategy performed over the past 5 years?

-55.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSTR is currently unprofitable.

Growing Profit Margin: MSTR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MSTR is unprofitable, and losses have increased over the past 5 years at a rate of 55.4% per year.

Accelerating Growth: Unable to compare MSTR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MSTR is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (30.1%).


Return on Equity

High ROE: MSTR has a negative Return on Equity (-32.38%), as it is currently unprofitable.


Financial Health

How is MicroStrategy's financial position?


Financial Position Analysis

Short Term Liabilities: MSTR's short term assets ($250.8M) do not cover its short term liabilities ($283.6M).

Long Term Liabilities: MSTR's short term assets ($250.8M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: MSTR's debt to equity ratio (455.3%) is considered high.

Reducing Debt: Insufficient data to determine if MSTR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MSTR's debt is not well covered by operating cash flow (5.3%).

Interest Coverage: MSTR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


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?

6.5yrs

Average management tenure


CEO

Michael Saylor (55 yo)

31.58yrs

Tenure

US$407,160

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 ($USD407.16K) is below average for companies of similar size in the US market ($USD6.52M).

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


Leadership Team

Experienced Management: MSTR's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: MSTR's board of directors are seasoned and experienced ( 16.6 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$5.033b
  • Shares outstanding: 9.75m
  • Website: https://www.microstrategy.com

Number of Employees


Location

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

Listings


Biography

MicroStrategy Incorporated provides enterprise analytics software and services worldwide. It offers MicroStrategy 2021, 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 Analysis2021/06/13 23:09
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.