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Microsoft Corp MSFT

Morningstar Rating
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Stock XNAS Rating as of
$432.68 +4.81 (1.12%)
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As of Delayed Price Post-Trading: $433.44 +0.75
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Company Report

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Microsoft Is the Early Leader in AI and Remains Well-Positioned for Public Cloud

Dan Romanoff

Microsoft is one of two public cloud providers that can deliver a wide variety of PaaS/IaaS solutions at scale. Based on its investment in OpenAI, the company has also emerged as a leader in artificial intelligence. The company has also enjoyed great success in upselling users on higher priced Office 365 versions, notably to include advanced telephony features. These factors have combined to drive a more focused company that offers impressive revenue growth with high and expanding margins.

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Price vs Fair Value

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MSFT is trading at a 472% premium.
Price
$427.87
Fair Value
$226.00
Uncertainty
Medium
1-Star Price
$325.41
5-Star Price
$142.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Public cloud is widely considered to be the future of enterprise computing, and Azure is a leading service that benefits the evolution to first to hybrid environments, and then ultimately to public cloud environments.

Bears

Momentum is slowing in the ongoing shift to subscriptions, particularly in Office, which is generally considered a mature product.

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Trading Information

Previous Close Price
$427.87
Day Range
$425.25–432.82
52-Week Range
$309.45–433.60
Bid/Ask
$433.36 / $433.50
Market Cap
$3.22 Tril
Volume/Avg
14.5 Mil / 19.6 Mil

Key Statistics

Price/Earnings (Normalized)
37.05
Price/Sales
13.50
Dividend Yield (Trailing)
0.68%
Dividend Yield (Forward)
0.70%
Total Yield
1.21%

Company Profile

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Large Growth
Total Number of Employees
221,000
Website
https://www.microsoft.com

Competitors

Valuation

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Metric
MSFT
CRM
GOOGL
Price/Earnings (Normalized)
 37.0526.9026.73
Price/Book Value
 12.563.937.40
Price/Sales
 13.506.656.96
Price/Cash Flow
 28.7217.0319.28
Price/Earnings
MSFT
CRM
GOOGL

Financial Strength

Metric
MSFT
CRM
GOOGL
Quick Ratio
 1.020.951.98
Current Ratio
 1.221.112.15
Interest Coverage
 41.4947.36285.78
Quick Ratio
MSFT
CRM
GOOGL

Profitability

Metric
MSFT
CRM
GOOGL
Return on Assets (Normalized)
 19.65%9.32%25.77%
Return on Equity (Normalized)
 38.71%15.06%36.64%
Return on Invested Capital (Normalized)
 28.79%12.53%32.10%
Return on Assets
MSFT
CRM
GOOGL
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