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.
CountryUS
ExchangeNASDAQ
IndustrySoftware - Infrastructure
SectorTechnology
Market Cap$3.18T
CEOMr. 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
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XboxGaming console
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LinkedInProfessional network
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Windows OSOperating system
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Microsoft 365Productivity suite
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Microsoft AzureCloud services
Business Type
Mixed Business Model
Competitive Advantages
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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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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Income Statement Flow
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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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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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