Microsoft Stock Analysis (NASDAQ:MSFT)

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$69.62 $0.85 (1.24%) MSFT stock closing price May 25, 2017 (Closing)
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Microsoft
Updated on : May 25, 2017
previous close
MSFT 69.6 (0%)
NASDAQ 6205.3 (0%)
Closing Price On: May 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
23%
Sector Average:
5.9%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
84.01B
Debt/Equity Ratio:
 1.21
Compared to the industry
Cash Flow
Operating cash flow:
$10.66B
Net Income:
$4.8B
Dividend Yield
MSFT dividend yield:
2.15%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MSFT PS :
6.2
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
51%
Return on Equity:
25%
Free Cash Flow Margin:
40.6%
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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 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.

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 reply