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MicroStrategy

Nasdaq:MSTR
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MSTR
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Software
Company description

MicroStrategy Incorporated provides enterprise analytics and mobility software platforms worldwide. The last earnings update was 77 days ago. More info.


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MSTR Share Price and Events
7 Day Returns
0.4%
NasdaqGS:MSTR
1.7%
US Software
1.1%
US Market
1 Year Returns
-7.7%
NasdaqGS:MSTR
26.3%
US Software
4.7%
US Market
MSTR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MicroStrategy (MSTR) 0.4% -6.8% -15.9% -7.7% -33.3% -11%
US Software 1.7% 6.7% 10.5% 26.3% 126.5% 163.7%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • MSTR underperformed the Software industry which returned 26.3% over the past year.
  • MSTR underperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
MSTR
Industry
5yr Volatility vs Market

Value

 Is MicroStrategy 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 MicroStrategy 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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MicroStrategy.

NasdaqGS:MSTR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
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.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:MSTR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.12 (1 + (1- 21%) (9.08%))
1.134
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.134 * 5.96%)
9.49%

Discounted Cash Flow Calculation for NasdaqGS:MSTR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MicroStrategy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:MSTR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.49%)
2020 39.56 Analyst x1 36.13
2021 36.93 Est @ -6.65% 30.80
2022 35.51 Est @ -3.84% 27.05
2023 34.85 Est @ -1.87% 24.25
2024 34.68 Est @ -0.49% 22.04
2025 34.84 Est @ 0.48% 20.22
2026 35.24 Est @ 1.15% 18.68
2027 35.82 Est @ 1.63% 17.34
2028 36.52 Est @ 1.96% 16.15
2029 37.32 Est @ 2.19% 15.07
Present value of next 10 years cash flows $227.74
NasdaqGS:MSTR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $37.32 × (1 + 2.73%) ÷ (9.49% – 2.73%)
$567.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $567.04 ÷ (1 + 9.49%)10
$229.00
NasdaqGS:MSTR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $227.74 + $229.00
$456.74
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $456.74 / 10.24
$44.61
NasdaqGS:MSTR Discount to Share Price
Calculation Result
Value per share (USD) From above. $44.61
Current discount Discount to share price of $124.50
= -1 x ($124.50 - $44.61) / $44.61
-179.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of MicroStrategy is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 MicroStrategy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MicroStrategy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:MSTR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.16
NasdaqGS:MSTR Share Price ** NasdaqGS (2019-07-16) in USD $124.5
United States of America Software Industry PE Ratio Median Figure of 81 Publicly-Listed Software Companies 52.12x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MicroStrategy.

NasdaqGS:MSTR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MSTR Share Price ÷ EPS (both in USD)

= 124.5 ÷ 1.16

106.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MicroStrategy is overvalued based on earnings compared to the US Software industry average.
  • MicroStrategy is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does MicroStrategy's expected growth come at a high price?
Raw Data
NasdaqGS:MSTR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 106.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
85.6%per year
United States of America Software Industry PEG Ratio Median Figure of 68 Publicly-Listed Software Companies 3.08x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

NasdaqGS:MSTR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 106.9x ÷ 85.6%

1.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MicroStrategy is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on MicroStrategy's assets?
Raw Data
NasdaqGS:MSTR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $46.72
NasdaqGS:MSTR Share Price * NasdaqGS (2019-07-16) in USD $124.5
United States of America Software Industry PB Ratio Median Figure of 223 Publicly-Listed Software Companies 5.9x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGS:MSTR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MSTR Share Price ÷ Book Value per Share (both in USD)

= 124.5 ÷ 46.72

2.66x

* Primary Listing of MicroStrategy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MicroStrategy is good value based on assets compared to the US Software industry average.
X
Value checks
We assess MicroStrategy's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. MicroStrategy 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 MicroStrategy expected to perform in the next 1 to 3 years based on estimates from 2 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!
Annual Growth Rate
85.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MicroStrategy expected to grow at an attractive rate?
  • MicroStrategy's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • MicroStrategy's earnings growth is expected to exceed the United States of America market average.
  • MicroStrategy's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:MSTR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:MSTR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 85.6%
NasdaqGS:MSTR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 5.8%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 18.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*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
Raw Data
NasdaqGS:MSTR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:MSTR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 537 50 36 2
2019-12-31 496 67 8 2
NasdaqGS:MSTR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 490 18 13
2018-12-31 498 11 23
2018-09-30 503 52 -7
2018-06-30 507 65 -1
2018-03-31 505 71 4
2017-12-31 504 78 18
2017-09-30 508 66 75
2017-06-30 511 81 83
2017-03-31 515 86 92
2016-12-31 514 111 92
2016-09-30 516 120 99
2016-06-30 515 124 96

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MicroStrategy's earnings are expected to grow significantly at over 20% yearly.
  • MicroStrategy's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:MSTR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from MicroStrategy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MSTR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 3.57 3.96 3.18 2.00
2019-12-31 0.84 0.92 0.75 2.00
NasdaqGS:MSTR Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.16
2018-12-31 1.98
2018-09-30 -0.60
2018-06-30 -0.12
2018-03-31 0.38
2017-12-31 1.59
2017-09-30 6.54
2017-06-30 7.28
2017-03-31 8.06
2016-12-31 8.07
2016-09-30 8.67
2016-06-30 8.44

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if MicroStrategy will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess MicroStrategy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MicroStrategy 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 MicroStrategy 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
Below we compare MicroStrategy's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MicroStrategy's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • MicroStrategy's 1-year earnings growth exceeds its 5-year average (199.7% vs -7.3%)
  • MicroStrategy's earnings growth has exceeded the US Software industry average in the past year (199.7% vs 22%).
Earnings and Revenue History
MicroStrategy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MicroStrategy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MSTR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 490.04 12.92 289.52 107.15
2018-12-31 497.64 22.50 291.66 102.50
2018-09-30 502.80 -6.85 284.14 95.89
2018-06-30 506.66 -1.37 279.51 89.42
2018-03-31 504.58 4.31 268.87 83.90
2017-12-31 503.84 18.20 255.21 78.77
2017-09-30 507.57 74.82 245.67 75.69
2017-06-30 511.46 83.26 241.66 74.39
2017-03-31 515.38 92.19 242.65 73.99
2016-12-31 513.59 92.24 237.74 73.14
2016-09-30 515.58 98.90 231.70 71.96
2016-06-30 515.22 96.16 230.88 71.68
2016-03-31 525.01 99.74 226.01 67.38
2015-12-31 529.87 105.93 229.25 65.21
2015-09-30 535.22 89.52 239.24 61.94
2015-06-30 556.88 64.78 266.00 72.81
2015-03-31 565.80 31.98 294.89 90.69
2014-12-31 579.83 5.04 321.43 103.36
2014-09-30 596.84 -1.52 342.76 115.50
2014-06-30 587.56 16.48 334.82 108.82
2014-03-31 583.61 25.26 327.88 100.30
2013-12-31 575.89 26.55 319.82 98.06
2013-09-30 565.99 18.75 314.25 97.10
2013-06-30 560.15 6.74 309.20 97.04
2013-03-31 557.57 16.22 301.68 91.83
2012-12-31 565.72 22.47 303.36 88.19
2012-09-30 570.00 23.12 311.93 85.42

*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.
  • MicroStrategy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MicroStrategy used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • It is difficult to establish if MicroStrategy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess MicroStrategy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MicroStrategy has a total score of 2/6, 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 MicroStrategy'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 MicroStrategy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MicroStrategy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • MicroStrategy's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of MicroStrategy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • MicroStrategy has no debt, it does not need to be covered by short term assets.
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.
Raw Data

All data from MicroStrategy Company Filings, last reported 3 months ago.

NasdaqGS:MSTR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 478.31 0.00 551.06
2018-12-31 529.73 0.00 576.11
2018-09-30 635.42 0.00 699.18
2018-06-30 620.36 0.00 699.59
2018-03-31 613.58 0.00 695.47
2017-12-31 605.73 0.00 675.17
2017-09-30 612.34 0.00 646.10
2017-06-30 589.69 0.00 632.40
2017-03-31 572.04 0.00 618.49
2016-12-31 552.18 0.00 589.38
2016-09-30 519.90 0.00 578.90
2016-06-30 489.65 0.00 550.09
2016-03-31 467.85 0.00 536.30
2015-12-31 455.28 0.00 485.66
2015-09-30 408.51 0.00 456.88
2015-06-30 380.69 0.00 427.90
2015-03-31 348.32 0.00 391.82
2014-12-31 324.47 0.00 345.47
2014-09-30 299.06 0.00 354.60
2014-06-30 298.13 0.00 367.54
2014-03-31 305.66 0.00 365.83
2013-12-31 310.33 0.00 357.37
2013-09-30 292.08 0.00 343.95
2013-06-30 273.46 0.00 317.78
2013-03-31 274.83 0.00 330.20
2012-12-31 200.31 0.00 223.08
2012-09-30 190.42 0.00 216.61
  • MicroStrategy has no debt.
  • MicroStrategy has not taken on any debt in the past 5 years.
  • MicroStrategy has no debt, it does not need to be covered by operating cash flow.
  • MicroStrategy has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess MicroStrategy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MicroStrategy has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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 MicroStrategy'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
Dividend payments
0%
Current annual income from MicroStrategy dividends. Estimated to be 0% next year.
If you bought $2,000 of MicroStrategy shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate MicroStrategy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate MicroStrategy's dividend against the top 25% market benchmark as the company has not reported any payouts.
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.
Raw Data
NasdaqGS:MSTR Annualized Past and Future Dividends
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 2 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
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 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:MSTR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as MicroStrategy has not reported any payouts.
  • Unable to verify if MicroStrategy's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of MicroStrategy's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as MicroStrategy has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of MicroStrategy's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess MicroStrategy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MicroStrategy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MicroStrategy has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of MicroStrategy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Saylor
COMPENSATION $1,213,196
AGE 54
TENURE AS CEO 29.7 years
CEO Bio

Mr. Michael J. Saylor has been the Chairman of the Board and Chief Executive Officer of MicroStrategy Inc. since November 1989 and has been its President since January 8, 2016. Previously, Mr. Saylor served as the President of MicroStrategy Inc. from November 1989 to November 2000 and again from January 2005 to October 19, 2012. Prior to that, he served as Venture Manager at E.I. du Pont de Nemours & Company from 1988 to 1989 and as a Consultant of Federal Group, Inc. from 1987 to 1988. Mr. Saylor received S.B. in Aeronautics and Astronautics and SB in Science, Technology and Society and S.B. in Aeronautics and Astronautics from the Massachusetts Institute of Technology.

CEO Compensation
  • Michael's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Michael's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the MicroStrategy management team in years:

4.7
Average Tenure
49.5
Average Age
  • The tenure for the MicroStrategy management team is about average.
Management Team

Michael Saylor

TITLE
Chairman
COMPENSATION
$1M
AGE
54
TENURE
29.7 yrs

Phong Le

TITLE
Senior EVP
COMPENSATION
$5M
AGE
42
TENURE
3.9 yrs

Tim Lang

TITLE
Chief Technology Officer & Senior EVP
COMPENSATION
$3M
AGE
46
TENURE
4.7 yrs

Wei-Ming Shao

TITLE
Senior EVP
COMPENSATION
$2M
AGE
50
TENURE
4.6 yrs

Marge Breya

TITLE
Senior Executive VP & Chief Marketing Officer
COMPENSATION
$8M
AGE
57
TENURE
1 yrs

John Gray

TITLE
Executive Vice President of Worldwide Alliances and Channels
TENURE
4.8 yrs

Susan Cook

TITLE
Executive Vice President of North American Sales
TENURE
4.8 yrs

Dave Rennyson

TITLE
COMPENSATION
$2M
AGE
49
Board of Directors Tenure

Average tenure and age of the MicroStrategy board of directors in years:

14.7
Average Tenure
57
Average Age
  • The average tenure for the MicroStrategy board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Michael Saylor

TITLE
Chairman
COMPENSATION
$1M
AGE
54
TENURE
29.7 yrs

Rick Rickertsen

TITLE
Director
COMPENSATION
$478K
AGE
59
TENURE
16.8 yrs

Stephen Graham

TITLE
Director
COMPENSATION
$454K
AGE
66
TENURE
5.3 yrs

Jarrod Patten

TITLE
Director
COMPENSATION
$464K
AGE
47
TENURE
14.7 yrs

Les Rechan

TITLE
Director
COMPENSATION
$1M
AGE
57
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess MicroStrategy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MicroStrategy 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

The MicroStrategy (NASDAQ:MSTR) Share Price Is Down 29% So Some Shareholders Are Getting Worried

We regret to report that long term MicroStrategy Incorporated (NASDAQ:MSTR) shareholders have had that experience, with the share price dropping 29% in three years, versus a market return of about 47%. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the three years that the share price fell, MicroStrategy's earnings per share (EPS) dropped by 49% each year.

Simply Wall St -

How Much is MicroStrategy Incorporated's (NASDAQ:MSTR) CEO Getting Paid?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Michael Saylor's Compensation Compare With Similar Sized Companies. … According to our data, MicroStrategy Incorporated has a market capitalization of US$1.5b, and pays its CEO total annual compensation worth US$656k.

Simply Wall St -

Is MicroStrategy Incorporated's (NASDAQ:MSTR) 4.2% ROE Worse Than Average?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.042 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Did MicroStrategy Incorporated's (NASDAQ:MSTR) Recent Earnings Growth Beat The Trend?

Understanding how MicroStrategy Incorporated (NASDAQ:MSTR) is performing as a company requires looking at more than just a years' earnings. … Today I will run you through a basic sense check to gain perspective on how MicroStrategy is doing by comparing its latest earnings with its long-term trend as well as the performance of its software industry peers. … Were MSTR's earnings stronger than its past performances and the industry.

Simply Wall St -

Don't Sell MicroStrategy Incorporated (NASDAQ:MSTR) Before You Read This

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … That corresponds to an earnings yield of approximately 1.5%. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Does MicroStrategy Incorporated's (NASDAQ:MSTR) CEO Pay Compare Well With Peers?

Michael Saylor became the CEO of MicroStrategy Incorporated (NASDAQ:MSTR) in 1989. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Michael Saylor's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What Investors Should Know About MicroStrategy Incorporated's (NASDAQ:MSTR) Financial Strength

The direct benefit for MicroStrategy Incorporated (NASDAQ:MSTR), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … Is financial flexibility worth the lower cost of capital. … Debt capital generally has lower cost of capital compared to equity funding

Simply Wall St -

Should You Worry About MicroStrategy Incorporated's (NASDAQ:MSTR) CEO Pay Check?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Michael Saylor's Compensation Compare With Similar Sized Companies. … Most shareholders would consider it a positive that Michael Saylor takes less compensation than the CEOs of most similar size companies, leaving more for shareholders.

Simply Wall St -

What You Must Know About MicroStrategy Incorporated's (NASDAQ:MSTR) Return on Equity

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … MicroStrategy Incorporated’s (NASDAQ:MSTR) most recent return on equity was a substandard 0.61% relative to its industry performance of 13.11% over the past year. … View our latest analysis for MicroStrategy

Simply Wall St -

How Do Analysts See MicroStrategy Incorporated's (NASDAQ:MSTR) Margin Performing In The Years Ahead?

Check out our latest analysis for MicroStrategy Breaking Down MSTR's Profit Margin Attractive margins generally indicate a desirable ability to translate sales revenue in to earnings, and return for shareholders. … Margin Calculation for MSTR Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 17.64 Million ÷ 504.54 Million = 3.50% MicroStrategy's margin has expanded in the past five years, with 26.73% in average net income growth and decline in revenue growth of -1.52% on average, which means that the decrease in revenue has coincided with a larger portion falling to the bottom line as the company was able to maintain a positive earnings trajectory. … Based on future expectations, MSTR's profit margin will continue to expand, with 0.59% in expected annual revenue growth and a forecasted 19.99% in annual net income growth.

Simply Wall St -

Company Info

Description

MicroStrategy Incorporated provides enterprise analytics and mobility software platforms worldwide. It offers MicroStrategy Consulting that provides customers with assessment, advisory, architecture, and deployment services to guide their customers in defining, developing, and delivering business analytics solutions for their enterprises across various industries; and MicroStrategy Education, which consists of classroom-based courses, instructor-led courses, recorded courses, self-paced e-learning modules, customer on-site training, and enterprise E-Courseware options for large organizations in various languages. The company’s products also include MicroStrategy’s software, such as technical support services for customers, business partners, and prospects; and software maintenance and renewal contract services, as well as educational programs and other support services. MicroStrategy Incorporated provides its services through enterprise sales force and channel partners. It serves companies from a range of industries, including retail, consulting, technology, manufacturing, finance, banking, insurance, healthcare, education, and telecommunications, as well as the public sector. The company was founded in 1989 and is headquartered in Tysons Corner, Virginia.

Details
Name: MicroStrategy Incorporated
MSTR
Exchange: NasdaqGS
Founded: 1989
$1,274,827,585
10,239,579
Website: http://www.microstrategy.com
Address: MicroStrategy Incorporated
1850 Towers Crescent Plaza,
Tysons Corner,
Virginia, 22182,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MSTR Class A Common Stock Nasdaq Global Select US USD 11. Jun 1998
DB MIGA Class A Common Stock Deutsche Boerse AG DE EUR 11. Jun 1998
XTRA MIGA Class A Common Stock XETRA Trading Platform DE EUR 11. Jun 1998
Number of employees
Current staff
Staff numbers
2,494
MicroStrategy employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 23:41
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/09
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


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.