Microsoft Corp

Technology
Computer Software: Prepackaged Software
www.microsoft.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $3.30T
PE 36
Debt $53.57B
Cash $20.84B
EV $3.33T
FCF $72.66B

Earnings

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Sales & Net Margins

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Earnings	$90.51B
EBIT	$112.70B
ROE	31%
ROA	22%
FCF	$72.66B
Equity	$287.72B
Growth Stability	99%
PE	36.41
PEG	2.28
PB	11.45
P/FCF	45.36
P/S	12.97
Price/Cash	0.01
Debt/Equity	0.19
Debt/FCF	0.74
Net Margins	38%
Gross Margins	69%
Op. Margins	44%
Earnings CAGR	28%
Sales Growth YoY	16%
Sales Growth QoQ	1%
Sales CAGR	14%
FCF CAGR	14%
Equity CAGR	15%
Earnings Stability	0.9
Earnings Growth YoY	11%
Earnings Growth QoQ	12%
Earnings CAGR 5Y	16%

Sales CAGR 5Y	14%
FCF CAGR 5Y	11%
Equity CAGR 5Y	22%
Earnings CAGR 3Y	11%
Sales CAGR 3Y	11%
FCF CAGR 3Y	6%
Equity CAGR 3Y	25%
Market Cap	$3.30T
Revenue	$254.19B
Dividend Yield	1%
Payout Ratio	25%
Assets	$523.01B
Total Debt	$53.57B
Cash	$20.84B
Shares Outstanding	7.43B
EV	3.33T
Earnings Score	95%
Moat Score	97%
Safety Score	97%
Final Score	96%
Working Capital	34.73B
Current Ratio	1.3
Gross Profit	$176.28B
Shares Growth 3y	-0%
Equity Growth QoQ	7%
Equity Growth YoY	30%

Assets & ROA

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Stockholders Equity & ROE

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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).

SEC Filings

Direct access to Microsoft Corp (MSFT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31

Sector Comparison

How does Microsoft Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Microsoft Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 28%

Stability 90%

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Microsoft Corp Discounted Cash Flow

Fully customizable DCF calculator online for Microsoft Corp.

Years

Calculation mode

= $2T

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$73B	$83B	$95B	$108B	$124B	$142B	$162B	$185B	$211B	$241B	$276B	$2.8T
DCF		$75B	$78B	$81B	$85B	$88B	$91B	$95B	$99B	$102B	$106B	$1.1T
Value	$2T

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	13%	18%	22%	15%	31%	31%	36%	37%	34%	36%	38%
ROA	-	11%	11%	15%	16%	18%	22%	23%	22%	21%	22%
ROE	-	23%	29%	20%	38%	37%	43%	44%	35%	33%	31%

Good Net Margins (37.61%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	2.15	2.75	2.49	2.05	1.57	1.28	0.89	0.98	0.72	0.74
Debt over Equity	0.44	0.75	1.19	0.97	0.77	0.6	0.51	0.35	0.28	0.2	0.19
Growth Stability	-	-	-	99%	100%	100%	100%	100%	100%	100%	99%

Good Debt/FCF ratio (0.74)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.19)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (99%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	-3%	6%	14%	14%	14%	18%	18%	7%	16%	14%
Earnings YoY growth	-	38%	26%	-22%	137%	13%	38%	19%	-1%	22%	16%
Equity YoY growth	-	-10%	1%	14%	24%	16%	20%	17%	24%	30%	22%
FCF YoY growth	-	8%	26%	3%	19%	18%	24%	16%	-9%	25%	11%