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 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.