NasdaqGS:MSTR

Stock Analysis Report

Executive Summary

MicroStrategy Incorporated provides enterprise analytics and mobility software platforms worldwide.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.

Risks

  • MicroStrategy is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-1.0%

NasdaqGS:MSTR

-1.5%

US Software

-1.2%

US Market


1 Year Return

-10.0%

NasdaqGS:MSTR

23.7%

US Software

3.4%

US Market

MSTR underperformed the Software industry which returned 23.7% over the past year.

MSTR underperformed the Market in United States of America which returned 3.4% over the past year.


Share holder returns

MSTRIndustryMarket
7 Day-1.0%-1.5%-1.2%
30 Day-17.7%1.9%1.2%
90 Day-16.9%8.7%1.7%
1 Year-10.0%-10.0%25.5%23.7%5.7%3.4%
3 Year-35.2%-35.2%127.2%118.0%45.0%35.5%
5 Year-12.2%-12.2%179.1%158.4%59.3%41.6%

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 based on future cash flows and its price relative to the stock market?

104.54x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

MicroStrategy's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

MicroStrategy's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

MicroStrategy is poor value based on expected growth next year.


Price Based on Value of Assets

MicroStrategy is good value based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is MicroStrategy expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

85.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MicroStrategy's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).

MicroStrategy's earnings are expected to grow significantly at over 20% yearly.

MicroStrategy's revenue growth is positive but not above the United States of America market average.

MicroStrategy's earnings growth is expected to exceed the United States of America market average.

MicroStrategy's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if MicroStrategy will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has MicroStrategy performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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%).


Return on Equity

MicroStrategy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

MicroStrategy used its assets less efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

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.


Next Steps

Financial Health

How is MicroStrategy's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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.


Balance Sheet

Low level of unsold assets.

MicroStrategy has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Michael Saylor (54yo)

29.7yrs

Tenure

US$1,213,196

Compensation

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 serve ...


CEO Compensation Analysis

Michael's remuneration is lower than average for companies of similar size in United States of America.

Michael's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.7yrs

Average Tenure

49.5yo

Average Age

The tenure for the MicroStrategy management team is about average.


Board Age and Tenure

14.7yrs

Average Tenure

57yo

Average Age

The average tenure for the MicroStrategy board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Michael Saylor (54yo)

    Chairman

    • Tenure: 29.7yrs
    • Compensation: $1.21m
  • Marge Breya (57yo)

    Senior Executive VP & Chief Marketing Officer

    • Tenure: 1.0yrs
    • Compensation: $7.52m
  • Dave Rennyson (49yo)

    • Compensation: $2.03m
  • Tim Lang (46yo)

    Chief Technology Officer & Senior EVP

    • Tenure: 4.7yrs
    • Compensation: $3.00m
  • John Gray

    Executive Vice President of Worldwide Alliances and Channels

    • Tenure: 4.8yrs
  • Phong Le (42yo)

    Senior EVP

    • Tenure: 3.9yrs
    • Compensation: $5.30m
  • Susan Cook

    Executive Vice President of North American Sales

    • Tenure: 4.8yrs
  • Wei-Ming Shao (50yo)

    Senior EVP

    • Tenure: 4.6yrs
    • Compensation: $2.21m

Board Members

  • Michael Saylor (54yo)

    Chairman

    • Tenure: 29.7yrs
    • Compensation: $1.21m
  • Rick Rickertsen (59yo)

    Director

    • Tenure: 16.8yrs
    • Compensation: $477.86k
  • Les Rechan (57yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: $1.14m
  • Stephen Graham (66yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: $454.35k
  • Jarrod Patten (47yo)

    Director

    • Tenure: 14.7yrs
    • Compensation: $464.35k

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$1.247b
  • Shares outstanding: 10.24m
  • Website: Click here

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 and mobility software platforms worldwide. It offers MicroStrategy Consulting that provides customers with assessment, advisory, architecture, and d ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/20 23:49
End of Day Share Price2019/07/19 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.