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 (4.1/5)
Our Microsoft stock opinion is based on fundamentals of the company. This Microsoft stock analysis is based on latest Q3 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% over the last 4 quarters.
- LTM Net margins were good at 20.4% for Microsoft.
- The company has an operating cash flow which is 2.2 times the net income.
- Microsoft has an attractive ROIC (Return on Invested Capital) of 51%
- The LTM ROE of 25% for Microsoft is attractive.
- Microsoft has a healthy FCF (Free Cash Flow) margin of 40.6%.
Should you sell MSFT stock?
- Microsoft is debt laden and has a high debt/equity ratio of 1.21.
- The company is trading at a price to sales multiple of 6.2, which is overvalued in comparison to the Computer-Software industry average multiple of 2.7.