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MSFT
Microsoft Corporation
Summary
Business
Earnings Call
Valuation
Profitability
Financial Health
Intel
Yearly Return 10Y annualized return is excellent at 26.7% per year
Earnings Expectations MSFT has met or exceeded earnings expectations in all recent quarters (10/10)
Positive Strong Return on Equity
Positive High Gross and Operating Profit Margins
Negative High Price-to-Earnings Ratio
Negative Elevated Price-to-Sales Ratio

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Overall, Microsoft demonstrates strong business quality with significant growth in cloud and AI revenue, bolstered by high customer commitment. However, challenges in execution within certain segments present risks. Looking ahead, innovation in product offerings and sustained demand for AI services suggest promising future growth, albeit with some short-term capacity constraints.

Analysis Date: January 29, 2025
Last Updated: May 29, 2025

+965%
+26.7% per year

Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.

Country US
Exchange NASDAQ
Industry Software - Infrastructure
Sector Technology
Market Cap $3.18T
CEO Mr. Satya Nadella

Microsoft Corporation is a large technology company that creates software and devices used by people and businesses around the world. They are best known for popular products like Windows (the operating system for computers) and Microsoft Office (which includes tools like Word and Excel). Microsoft also offers cloud services through Azure, helping businesses store and manage data online. Additionally, they provide gaming consoles like Xbox and other devices such as tablets and PCs.

Streams of revenue

Server Products And Tools: 57%
Gaming: 14%
Linked In Corporation: 11%
Search And News Advertising: 8%
Enterprise Services: 5%
Dynamics Products And Cloud Services: 5%
Other Products And Services: 0%

Geographic Distribution

UNITED STATES: 52%
Non Us: 48%

Core Products

🎮
Xbox Gaming console
🔗
LinkedIn Professional network
🖥️
Windows OS Operating system
💼
Microsoft 365 Productivity suite
☁️
Microsoft Azure Cloud services

Business Type

Hybrid Mixed Business Model

Competitive Advantages

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Key Business Risks

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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

Graham Value Metrics

Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.

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ROE: 32.73582173230374

ROA: None

Gross Profit Margin: 69.07484907966371

Net Profit Margin: 35.78941520684419

Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

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About Profitability Metrics

Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.

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About Financial Health Metrics

Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.

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Meeting Expectations

10 /10

Higher values indicate better execution and credibility

Recent Results

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EPS

3.22
Estimated
3.46
Actual
+7.45%
Difference

Revenue

$68439856878
Estimated
$70066000000
Actual
+2.38%
Difference
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Insider trading data shows purchase and sale activities by company executives and board members.

Insider Sentiment Analysis

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MSFT Stock Analysis: Microsoft Corporation Investment Guide

MSFT (Microsoft Corporation) is a Technology company listed on NASDAQ Global Select. The stock has generated 26.7% annual returns with an overall investment score of None/100.

Overall, Microsoft demonstrates strong business quality with significant growth in cloud and AI revenue, bolstered by high customer commitment. However, challenges in execution within certain segments present risks. Looking ahead, innovation in product offerings and sustained demand for AI services suggest promising future growth, albeit with some short-term capacity constraints.

MSFT Key Financial Metrics

MSFT financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 0.3047681744118531/100 and profitability score of 5.0/100 with financial health rated 7.45/100.

About Microsoft Corporation

Microsoft Corporation is a large technology company that creates software and devices used by people and businesses around the world. They are best known for popular products like Windows (the operating system for computers) and Microsoft Office (which includes tools like Word and Excel). Microsoft also offers cloud services through Azure, helping businesses store and manage data online. Additionally, they provide gaming consoles like Xbox and other devices such as tablets and PCs.

MSFT Investment Recommendation

Based on our comprehensive analysis of MSFT, investors should consider the company's strong performance track record, earnings consistency (10/10 quarters beat expectations), and current valuation metrics when making investment decisions.

Technology Sector Analysis

MSFT operates in the Software - Infrastructure industry within the Technology sector. This analysis compares Microsoft Corporation performance against industry and sector benchmarks to provide context for investment decisions.

Frequently Asked Questions about MSFT Stock

Is MSFT a good investment?

MSFT (Microsoft Corporation) has generated 26.7% annual returns with an overall score of None/100. Overall, Microsoft demonstrates strong business quality with significant growth in cloud and AI revenue, bolstered by high customer commitment. However, challenges in execution within certain segments present risks. Looking ahead, … Investors should consider their risk tolerance and investment goals when evaluating MSFT.

What is MSFT P/E ratio and valuation?

MSFT valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Software - Infrastructure industry and Technology sector benchmarks. The company currently has a valuation score of 0.3047681744118531/100.

Should I buy MSFT stock now?

The decision to buy MSFT stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 5.0/100, financial health score of 7.45/100, and detailed performance metrics to help inform your investment decision.

What are MSFT financial health indicators?

MSFT financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 7.45/100 based on comprehensive analysis of balance sheet strength and operational efficiency.

How does MSFT compare to competitors?

MSFT performance is benchmarked against Software - Infrastructure industry peers and Technology sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for Microsoft Corporation's market position.

What are MSFT historical returns?

MSFT has generated 26.7% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.

MSFT Key Investment Metrics Summary

  • Annual Return: 26.7%
  • Valuation Score: 0.3047681744118531/100
  • Profitability Score: 5.0/100
  • Financial Health Score: 7.45/100
  • Growth Score: 1.6965536681389168/100
  • Earnings Beat Rate: 10/10 quarters
  • Sector: Technology
  • Industry: Software - Infrastructure
  • Exchange: NASDAQ Global Select
  • Market Cap: 3181013408000

MSFT Investment Thesis

Microsoft Corporation (MSFT) represents an excellent investment opportunity in the Technology sector. With an overall score of None/100, the company demonstrates areas for financial improvement.

Investment Strengths

  • Strong Return on Equity
  • High Gross and Operating Profit Margins
  • Strong Net Profit Margin
  • Impressive Free Cash Flow per Share
  • Low Debt Levels
  • Strong Liquidity Ratios
  • Strong Cloud Growth
  • AI Business Expansion
  • High Customer Commitment
  • Innovative Product Offerings
  • Sustained AI Demand

Investment Risks

  • High Price-to-Earnings Ratio
  • Elevated Price-to-Sales Ratio
  • Low Cash Ratio
  • Execution Challenges in Non-AI Azure Services
  • Capacity Constraints
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