Microsoft Stock Analysis, Valuation (NASDAQ:MSFT)

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$74.41 $0.2 (0.27%) MSFT stock closing price Sep 22, 2017 (Closing)
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Microsoft
Updated on : Sep 22, 2017
previous close
MSFT 74.4 (0%)
NASDAQ 6426.9 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
24.8%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
86.19B
Debt/Equity Ratio:
 1.19
Compared to the industry
Cash Flow
Operating cash flow:
$11.01B
Net Income:
$6.51B
Dividend Yield
MSFT dividend yield:
2.06%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MSFT PS :
6.4
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
55.8%
Return on Equity:
30%
Free Cash Flow Margin:
37.4%
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Microsoft Stock Analysis

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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.

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