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 had a healthy average operating margin of 23.1% over the last 4 quarters.
- Net margins stood at a healthy 19.6% (average) for Microsoft in the Trailing Twelve Months.
- The price to earnings multiple of 22.4 is attractive when compared with the industry average PE ratio of 25.8.
- Microsoft generates a high return on invested capital of 53.3%.
- The LTM ROE of 23.1% for Microsoft is attractive.
- Microsoft has a healthy FCF (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.
- 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.