NasdaqGS:MSFT

Stock Analysis Report

Executive Summary

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.

Snowflake

Fundamentals

Solid track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Microsoft's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

NasdaqGS:MSFT

3.2%

US Software

2.9%

US Market


1 Year Return

29.6%

NasdaqGS:MSFT

19.1%

US Software

0.2%

US Market

MSFT outperformed the Software industry which returned 18.6% over the past year.

MSFT outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

MSFTIndustryMarket
7 Day3.6%3.2%2.9%
30 Day0.3%-2.8%-2.3%
90 Day10.0%4.6%3.1%
1 Year31.7%29.6%20.8%19.1%2.4%0.2%
3 Year153.6%139.5%117.8%109.2%41.7%32.4%
5 Year245.5%209.3%166.1%146.9%55.1%37.9%

Price Volatility Vs. Market

How volatile is Microsoft's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Microsoft undervalued based on future cash flows and its price relative to the stock market?

27.14x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Microsoft's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Microsoft's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Microsoft is good value based on earnings compared to the US Software industry average.

Microsoft is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Microsoft is poor value based on expected growth next year.


Price Based on Value of Assets

Microsoft is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is Microsoft expected to perform in the next 1 to 3 years based on estimates from 31 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Microsoft's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).

Microsoft's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

Microsoft's revenue growth is expected to exceed the United States of America market average.

Microsoft's earnings growth is positive but not above the United States of America market average.

Microsoft's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Microsoft is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Microsoft performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Microsoft's year on year earnings growth rate has been positive over the past 5 years.

Microsoft's 1-year earnings growth exceeds its 5-year average (136.8% vs 12.6%)

Microsoft's earnings growth has exceeded the US Software industry average in the past year (136.8% vs 45.5%).


Return on Equity

Microsoft has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Microsoft used its assets more efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

Microsoft's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Microsoft's financial position?


Financial Position Analysis

Microsoft is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Microsoft's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Microsoft's level of debt (70.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (25.9% vs 70.5% today).

Debt is well covered by operating cash flow (72.3%, greater than 20% of total debt).

Microsoft earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.4x debt.


Next Steps

Dividend

What is Microsoft's current dividend yield, its reliability and sustainability?

1.53%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Microsoft's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Microsoft's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).


Next Steps

Management

What is the CEO of Microsoft's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Satya Nadella (52yo)

5.5yrs

Tenure

US$25,843,263

Compensation

Mr. Satya Nadella is Chief Executive Officer and Director of Microsoft Corporation since February 2014. Before being named CEO in February 2014, he held leadership roles in both enterprise and consumer bus ...


CEO Compensation Analysis

Satya's remuneration is higher than average for companies of similar size in United States of America.

Satya's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.9yrs

Average Tenure

57.5yo

Average Age

The tenure for the Microsoft management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

62yo

Average Age

The tenure for the Microsoft board of directors is about average.


Insider Trading

Microsoft individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$967,05014 Aug 19
Christopher Capossela
EntityIndividual
Shares7,000
Max PriceUS$138.15
SellUS$483,00612 Aug 19
Christopher Capossela
EntityIndividual
Shares3,500
Max PriceUS$138.00
SellUS$465,54205 Aug 19
Christopher Capossela
EntityIndividual
Shares3,372
Max PriceUS$138.06
SellUS$564,21630 Jul 19
Frank Brod
EntityIndividual
Role
Chief Accounting Officer
Corporate VP of Finance & Administration and Chief Accounting Officer
Shares4,000
Max PriceUS$141.05
SellUS$2,123,65411 Jun 19
Kathleen Hogan
EntityIndividual
Shares15,947
Max PriceUS$133.17
SellUS$630,09915 May 19
Christopher Capossela
EntityIndividual
Shares5,000
Max PriceUS$126.34
SellUS$386,62007 May 19
Christopher Capossela
EntityIndividual
Shares3,000
Max PriceUS$128.87
SellUS$25,064,20902 May 19
Bradford Smith
EntityIndividual
Role
President
President & Chief Legal Officer
Shares192,300
Max PriceUS$130.34
SellUS$1,170,54311 Mar 19
Christopher Capossela
EntityIndividual
Shares10,500
Max PriceUS$112.41
SellUS$3,043,75719 Feb 19
Jean-Philippe Courtois
EntityIndividual
Role
Chief Operating Officer
Executive VP and President of Microsoft Global Sales
Shares28,147
Max PriceUS$108.14
SellUS$422,00011 Dec 18
Christopher Capossela
EntityIndividual
Shares4,000
Max PriceUS$105.50
SellUS$432,00007 Dec 18
Christopher Capossela
EntityIndividual
Shares4,000
Max PriceUS$108.00
SellUS$1,117,66005 Dec 18
Christopher Capossela
EntityIndividual
Shares10,000
Max PriceUS$111.77
SellUS$4,061,86609 Nov 18
Kathleen Hogan
EntityIndividual
Shares36,500
Max PriceUS$111.28
SellUS$214,36306 Nov 18
Frank Brod
EntityIndividual
Role
Chief Accounting Officer
Corporate VP of Finance & Administration and Chief Accounting Officer
Shares2,000
Max PriceUS$107.18
SellUS$2,153,90001 Nov 18
Frank Brod
EntityIndividual
Role
Chief Accounting Officer
Corporate VP of Finance & Administration and Chief Accounting Officer
Shares20,000
Max PriceUS$107.70
SellUS$6,431,59610 Sep 18
Christopher Capossela
EntityIndividual
Shares59,162
Max PriceUS$109.22
SellUS$13,086,76605 Sep 18
Amy Hood
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares118,000
Max PriceUS$110.90
SellUS$4,452,40005 Sep 18
Kathleen Hogan
EntityIndividual
Shares40,000
Max PriceUS$111.31

Ownership Breakdown


Management Team

  • Frank Brod (64yo)

    Corporate VP of Finance & Administration and Chief Accounting Officer

    • Tenure: 0.0yrs
  • Bill Gates (64yo)

    Co-Founder

    • Tenure: 38.6yrs
  • Jean-Philippe Courtois (58yo)

    Executive VP and President of Microsoft Global Sales

    • Tenure: 3.1yrs
    • Compensation: US$11.13m
  • Satya Nadella (52yo)

    CEO & Director

    • Tenure: 5.5yrs
    • Compensation: US$25.84m
  • Brad Smith (60yo)

    President & Chief Legal Officer

    • Tenure: 3.9yrs
    • Compensation: US$13.51m
  • Peggy Johnson (57yo)

    Executive Vice President of Business Development

    • Tenure: 4.9yrs
    • Compensation: US$8.76m
  • Amy Hood (47yo)

    Executive VP & CFO

    • Tenure: 6.3yrs
    • Compensation: US$14.92m
  • J. Scott (46yo)

    CTO & Executive VP

    • Tenure: 2.6yrs
  • Vikas Mehta

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Nick Coleman

    Chief Technology Officer

    • Tenure: 0.8yrs

Board Members

  • Charlie Scharf (54yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$325.00k
  • Bill Gates (64yo)

    Co-Founder

    • Tenure: 38.6yrs
  • John Thompson (70yo)

    Independent Chairman

    • Tenure: 5.5yrs
    • Compensation: US$690.00k
  • Chuck Noski (66yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: US$370.00k
  • John Stanton (64yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$355.00k
  • Sandi Peterson (60yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: US$355.00k
  • Helmut Gunter Panke (73yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: US$357.50k
  • Satya Nadella (52yo)

    CEO & Director

    • Tenure: 5.5yrs
    • Compensation: US$25.84m
  • Padmasree Warrior (58yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: US$325.00k
  • Teri List-Stoll (56yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$355.00k

Company Information

Microsoft Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Microsoft Corporation
  • Ticker: MSFT
  • Exchange: NasdaqGS
  • Founded: 1975
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$1.060t
  • Shares outstanding: 7.64b
  • Website: https://www.microsoft.com

Number of Employees


Location

  • Microsoft Corporation
  • One Microsoft Way
  • Redmond
  • Washington
  • 98052
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSFTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1986
US_MSFTKAS (Kazakhstan Stock Exchange)YesCommon StockKZKZTMar 1986
MSFT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1986
MSFDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1986
4338SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon StockHKHKDMar 1986
MSFTSWX (SIX Swiss Exchange)YesCommon StockCHCHFMar 1986
MSFXTRA (XETRA Trading Platform)YesCommon StockDEEURMar 1986
MSFENXTBR (Euronext Brussels)YesCommon StockBEUSDMar 1986
MSFTBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPMar 1986
MSFTSNSE (Santiago Stock Exchange)YesCommon StockCLUSDMar 1986
MS-UETLX (Eurotlx)YesCommon StockITEURMar 1986
MSFTWBAG (Wiener Boerse AG)YesCommon StockATEURMar 1986
MSFTBASE (Buenos Aires Stock Exchange)CEDEARS EACH REP 1/5 ORD USD0.000025ARARSDec 1999
MSFT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHSBRBRLDec 2011

Biography

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company’s Productivity and Business Processes segment offers Office, Exchange, SharePoint, M ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:42
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.