NasdaqGS:MSTR

Stock Analysis Report

Executive Summary

MicroStrategy Incorporated provides enterprise analytics and mobility software platforms worldwide.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.


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

-0.8%

MSTR

-2.7%

US Software

1.0%

US Market


1 Year Return

12.7%

MSTR

19.2%

US Software

8.0%

US Market

Return vs Industry: MSTR underperformed the US Software industry which returned 19.2% over the past year.

Return vs Market: MSTR exceeded the US Market which returned 8% over the past year.


Shareholder returns

MSTRIndustryMarket
7 Day-0.8%-2.7%1.0%
30 Day-4.0%-2.7%-0.07%
90 Day16.5%-7.0%-1.0%
1 Year12.7%12.7%21.0%19.2%10.4%8.0%
3 Year-17.0%-17.0%111.2%102.7%46.2%36.7%
5 Year-9.5%-9.5%164.9%145.8%64.3%46.2%

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?

54.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MSTR ($143.02) is trading above our estimate of fair value ($44.17)

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


Price To Earnings Ratio

PE vs Industry: MSTR is poor value based on its PE Ratio (54.2x) compared to the Software industry average (45.8x).

PE vs Market: MSTR is poor value based on its PE Ratio (54.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: MSTR is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: MSTR is good value based on its PB Ratio (2.9x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

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

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSTR's forecast earnings growth (11.4% per year) is above the savings rate (2.7%).

Earnings vs Market: MSTR's earnings (11.4% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: MSTR's earnings are forecast to grow, but not significantly.

Revenue vs Market: MSTR's revenue (5.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MSTR's revenue (5.4% 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


Next Steps

Past Performance

How has MicroStrategy performed over the past 5 years?

-12.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MSTR's earnings have declined by -12.1% per year over the past 5 years.

Accelerating Growth: MSTR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MSTR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (19.1%).


Return on Equity

High ROE: MSTR's Return on Equity (5.7%) is considered low.


Return on Assets

ROA vs Industry: MSTR's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: MSTR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is MicroStrategy's financial position?


Financial Position Analysis

Short Term Liabilities: MSTR's short term assets ($727.3M) exceeds its short term liabilities ($250.6M)

Long Term Liabilities: MSTR's short term assets (727.3M) exceeds its long term liabilities (146.4M)


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: Insufficient data to determine if MSTR's debt is covered by short term assets.


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%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

4.9yrs

Average management tenure


CEO

Michael Saylor (54yo)

29.9yrs

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 ($USD1.21M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

4.9yrs

Average Tenure

49.5yo

Average Age

Experienced Management: MSTR's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

14.9yrs

Average Tenure

57yo

Average Age

Experienced Board: MSTR's board of directors are seasoned and experienced ( 14.9 years average tenure).


Insider Trading

Insider Buying: MSTR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$260,26205 Aug 19
Leslie Rechan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,900
Max PriceUS$136.98

Ownership Breakdown


Management Team

  • Michael Saylor (54yo)

    Chairman

    • Tenure: 29.9yrs
    • Compensation: US$1.21m
  • Marge Breya (57yo)

    Senior Executive VP & Chief Marketing Officer

    • Tenure: 1.3yrs
    • Compensation: US$5.41m
  • Dave Rennyson (49yo)

    • Tenure: 0yrs
    • Compensation: US$2.03m
  • Tim Lang (46yo)

    Chief Technology Officer & Senior EVP

    • Tenure: 4.9yrs
    • Compensation: US$3.00m
  • John Gray

    Executive Vice President of Worldwide Alliances and Channels

    • Tenure: 5.1yrs
  • Phong Le (42yo)

    Senior EVP

    • Tenure: 4.2yrs
    • Compensation: US$5.30m
  • Susan Cook

    Executive Vice President of North American Sales

    • Tenure: 5yrs
  • Wei-Ming Shao (50yo)

    Senior EVP

    • Tenure: 4.8yrs
    • Compensation: US$2.21m

Board Members

  • Michael Saylor (54yo)

    Chairman

    • Tenure: 29.9yrs
    • Compensation: US$1.21m
  • Rick Rickertsen (59yo)

    Director

    • Tenure: 17yrs
    • Compensation: US$477.86k
  • Les Rechan (57yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$1.14m
  • Stephen Graham (66yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$454.35k
  • Jarrod Patten (47yo)

    Director

    • Tenure: 14.9yrs
    • Compensation: US$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$1.464b
  • Shares outstanding: 10.24m
  • 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 d ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:37
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.