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?
- Microsoft's average operating margin of 23.1% was exceptional.
- Net margins came in at average 19.6% for Microsoft over the last twelve months.
- The Microsoft stock currently trades at a price to earnings ratio of 22.3. We rate this as a positive, compared to the industry average of 25.5.
- Microsoft generates a high return on invested capital of 53.3%.
- The LTM ROE of 23.1% for Microsoft is attractive.
- The company has a healthy free cash flow margin of 17.9%.
Should you sell MSFT stock?
- Microsoft had a low YoY revenue growth of 1.2% in the 2017 Q2.
- With a debt/equity ratio of 1.24, Microsoft is highly leveraged in comparison to Computer and Technology peers.
- The company is trading at a price to sales multiple of 5.8, which is higher in comparison to the Computer-Software industry average of 2.6, making MSFT stock expensive.