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 (4/5)
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's average operating margin of 23% was exceptional.
- Net margins came in at average 20.4% for Microsoft over the last twelve months.
- The company has an operating cash flow which is 2.2 times the net income.
- Microsoft's return on invested capital of 51% is good.
- The LTM ROE of 25% for Microsoft is attractive.
- The company has a healthy free cash flow margin of 40.6%.
Should you sell MSFT stock?
- With a debt/equity ratio of 1.21, Microsoft is highly leveraged in comparison to Computer and Technology peers.
- MSFT stock is trading at a PS multiple of 6.6, which is a negative when compared to the Computer-Software industry average multiple of 2.8.