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 Q1 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% for Microsoft.
- Net margins came in at average 19.4% for Microsoft over the last twelve months.
- The company has an operating cash flow which is 2.5 times the net income.
- MSFT stock is trading at an earnings multiple of 22.1 which is better than the industry average of 25.3.
- Microsoft has an attractive ROIC (Return on Invested Capital) of 60.2%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Microsoft at 22.3%.
- Microsoft has a healthy FCF (Free Cash Flow) margin of 45.9%.
Should you sell MSFT stock?
- 2017 Q1 revenue growth of 0.4% YoY was meagre.
- Over the last 5 years, the company registered a poor revenue growth of .
- Microsoft has a debt/equity ratio of 1.06, which is worse than the average in the Computer and Technology sector.
- The company is trading at a price to sales multiple of 5.7, which is overvalued in comparison to the Computer-Software industry average multiple of 2.4.