NasdaqGS:MSTR

Stock Analysis Report

Executive Summary

MicroStrategy Incorporated provides enterprise analytics and mobility software platforms worldwide.

Rewards

PE ratio (44.4x) is below the Software industry average (52.1x)

Earnings grew by 52.7% over the past year

Risk Analysis

Earnings have declined by -24.66% per year over past 5 years



Snowflake Analysis

Flawless balance sheet with proven track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

MSTR

1.7%

US Software

1.5%

US Market


1 Year Return

5.5%

MSTR

42.3%

US Software

20.1%

US Market

Return vs Industry: MSTR underperformed the US Software industry which returned 42.2% over the past year.

Return vs Market: MSTR underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

MSTRIndustryMarket
7 Day-2.5%1.7%1.5%
30 Day1.4%7.7%1.4%
90 Day-4.1%18.4%8.7%
1 Year5.5%5.5%43.9%42.3%22.7%20.1%
3 Year-22.8%-22.8%152.8%142.4%50.1%40.5%
5 Year-17.1%-17.1%224.7%201.5%73.1%54.1%

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?

44.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MSTR ($148.84) is trading above our estimate of fair value ($57.93)

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


Price To Earnings Ratio

PE vs Industry: MSTR is good value based on its PE Ratio (44.4x) compared to the Software industry average (52.1x).

PE vs Market: MSTR is poor value based on its PE Ratio (44.4x) compared to the US market (18.4x).


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 good value based on its PB Ratio (3x) compared to the US Software industry average (6x).


Next Steps

Future Growth

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

11.4%

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 (1.7%).

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?

-24.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSTR has high quality earnings.

Growing Profit Margin: MSTR's current net profit margins (7.1%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: MSTR's earnings have declined by -24.7% per year over the past 5 years.

Accelerating Growth: MSTR's earnings growth over the past year (52.7%) exceeds its 5-year average (-24.7% per year).

Earnings vs Industry: MSTR earnings growth over the past year (52.7%) exceeded the Software industry 17.1%.


Return on Equity

High ROE: MSTR's Return on Equity (6.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MicroStrategy's financial position?


Financial Position Analysis

Short Term Liabilities: MSTR's short term assets ($753.4M) exceed its short term liabilities ($269.8M).

Long Term Liabilities: MSTR's short term assets ($753.4M) exceed its long term liabilities ($138.2M).


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

Inventory Level: MSTR has a low level of unsold assets or inventory.

Debt Coverage by Assets: MSTR's debt is not covered by short term assets (assets are -80.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

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

5.2yrs

Average management tenure


CEO

Michael Saylor (54yo)

30.3yrs

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

Compensation vs Market: Michael's total compensation ($USD1.21M) is below average for companies of similar size in the US market ($USD3.76M).

Compensation vs Earnings: Michael's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Saylor
Chairman30.3yrsUS$1.21m19.89% $299.1m
Phong Le
Senior EVP & COO1.7yrsUS$5.30mno data
Timothy Lang
Chief Technology Officer & Senior EVP5.3yrsUS$3.00mno data
Wei-Ming Shao
Senior EVP5.2yrsUS$2.21mno data
Lisa Mayr
CFO & Senior EVP0.3yrsno datano data
Saurabh Abhyankar
Executive Vice President of Marketing0.3yrsno datano data
John Gray
Executive Vice President of Worldwide Alliances and Channels5.4yrsno datano data
Susan Cook
Executive Vice President of North American Sales5.3yrsno datano data
Vijay Anand
Vice President of Product Marketing and Enterprise Analytics0yrsno datano data
David Rennyson
0yrsUS$2.03mno data

5.2yrs

Average Tenure

49yo

Average Age

Experienced Management: MSTR's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Saylor
Chairman30.3yrsUS$1.21m19.89% $299.1m
Carl Rickertsen
Independent Director17.3yrsUS$477.86k0.030% $446.1k
Leslie Rechan
Independent Director1.9yrsUS$1.14m0.019% $282.5k
Stephen Graham
Independent Director5.8yrsUS$454.35k0.0020% $29.8k
Jarrod Patten
Independent Director15.3yrsUS$464.35kno data

15.3yrs

Average Tenure

57yo

Average Age

Experienced Board: MSTR's board of directors are seasoned and experienced ( 15.3 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$1.504b
  • Shares outstanding: 10.11m
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:43
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
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.