Microsoft Stock Analysis (NASDAQ:MSFT)
$74.19 $0.59 (0.8%) MSFT stock closing price Jul 25, 2017 (Closing)
Microsoft
Updated on : Jul 25, 2017
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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 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.
You may be interested in our Adobe Systems valuation video, HP Inc valuation video, Oracle valuation video, Red Hat valuation video, SAP valuation video
Comments on this video and Microsoft stock
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