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 (3.9/5)
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?
- The TTM operating margin was good at 23.1% for Microsoft.
- Net margins came in at average 19.6% for Microsoft over the last twelve months.
- Microsoft has an attractive ROIC (Return on Invested Capital) of 53.3%
- Microsoft has a good Return On Equity (ROE) of 23.1%.
- Microsoft has a healthy FCF (Free Cash Flow) margin of 17.9%.
Should you sell MSFT stock?
- 2017 Q2 revenue growth of 1.2% YoY was meagre.
- 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 6.1, which is higher in comparison to the Computer-Software industry average of 2.7, making MSFT stock expensive.