Microsoft Stock Analysis, Valuation (NASDAQ:MSFT)
Microsoft Stock Analysis
View Microsoft stock analysis video. This is our 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 2017 Q4 earnings. The stock price analysis takes into account the company's valuation metrics.
Should you buy MSFT stock?
- Microsoft had a healthy average operating margin of 24.8% over the last 4 quarters.
- LTM Net margins were good at 23.6% for Microsoft.
- The company has an operating cash flow which is 1.7 times the net income. We see this as a positive signal.
- Microsoft's return on invested capital of 55.8% is good.
- Microsoft has a good Return On Equity (ROE) of 30%.
- Microsoft has a healthy FCF (Free Cash Flow) margin of 37.4%.
Should you sell MSFT stock?
- Microsoft has a debt/equity ratio of 1.19, which is worse than the average in the Computer and Technology sector.
- MSFT stock is trading at a PS multiple of 6.4, which is a negative when compared to the Computer-Software industry average multiple of 2.7.