Microsoft Stock Analysis (NASDAQ:MSFT)
Microsoft Analysis Video
View Microsoft stock analysis video. This is our MSFT analyst opinion covering the buy and sell arguments for MSFT stock.
Microsoft Corporation Stock Rating (4/5)
Our Microsoft stock opinion is based on fundamentals of the company. This Microsoft stock analysis is based on latest Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy MSFT stock?
- The TTM operating margin was good at 23.1% for Microsoft.
- LTM Net margins were good at 19.6% for Microsoft.
- The price to earnings multiple of 22.4 is attractive when compared with the industry average PE ratio of 25.7.
- Microsoft has an attractive ROIC (Return on Invested Capital) of 53.3%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Microsoft at 23.1%.
- The company has a good Free Cash Flow (FCF) margin of 17.9%.
Should you sell MSFT stock?
- Microsoft salesgrew by a marginal 1.2% year over year in 2017 Q2.
- Microsoft has a debt/equity ratio of 1.24, which is worse than the average in the Computer and Technology sector.
- The company is trading at a price to sales multiple of 5.9, which is overvalued in comparison to the Computer-Software industry average multiple of 2.6.