Microsoft Stock Analysis (NASDAQ:MSFT)

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$64.87 $0.16 (0.25%) MSFT stock closing price Mar 23, 2017 (Closing)
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Microsoft
Updated on : Mar 23, 2017
previous close
MSFT 64.9 (0%)
NASDAQ 5817.7 (0%)
Closing Price On: Mar 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
23.1%
Sector Average:
2.7%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
84.97B
Debt/Equity Ratio:
 1.24
Compared to the industry
Cash Flow
Operating cash flow:
$6.29B
Net Income:
$5.2B
Dividend Yield
MSFT dividend yield:
2.27%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
Recent Growth
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MSFT PS :
5.9
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
53.3%
Return on Equity:
23.1%
Free Cash Flow Margin:
17.9%
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Microsoft Analysis Video

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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.

Comments on this video and Microsoft stock

Mike-Zaman on Microsoft stock analysis ($43.34)
bullish
Keep a close eye on Microsoft Corporation (MSFT), which reported third quarter fiscal 2015 profit and revenue numbers that exceeded Wall Street estimates

Read more at Mike Zaman website http://mikezaman.com/33784/stocks/gigamo...
1 reply