Microsoft Stock Analysis (NASDAQ:MSFT)

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$74.19 $0.59 (0.8%) MSFT stock closing price Jul 25, 2017 (Closing)
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Microsoft
Updated on : Jul 25, 2017
previous close
MSFT 74.2 (0%)
NASDAQ 6412.2 (0%)
Closing Price On: Jul 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
24.8%
Sector Average:
6%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
86.19B
Debt/Equity Ratio:
 1.19
Compared to the industry
Cash Flow
Operating cash flow:
$11.01B
Net Income:
$6.51B
Dividend Yield
MSFT dividend yield:
2.06%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MSFT PS :
6.4
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
55.8%
Return on Equity:
30%
Free Cash Flow Margin:
37.4%
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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 (4.1/5)

Our Microsoft stock opinion is based on fundamentals of the company. This Microsoft stock analysis is based on latest Q4 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 24.8% for Microsoft.
  • Net margins stood at a healthy 23.6% (average) for Microsoft in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.7 times the net income. We see this as a positive signal.
  • The price to earnings multiple of 22.5 is attractive when compared with the industry average PE ratio of 26.8.
  • Microsoft generates a high return on invested capital of 55.8%.
  • The LTM ROE of 30% for Microsoft is attractive.
  • The company has a healthy free cash flow margin of 37.4%.

Should you sell MSFT stock?

  • Microsoft is debt laden and has a high debt/equity ratio of  1.19.
  • The company is trading at a price to sales multiple of 6.4, which is overvalued in comparison to the Computer-Software industry average multiple of 2.8.

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 1 reply