Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.5%. Since the same quarter one year prior, revenues rose by 17.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MSFT's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.71, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for MICROSOFT CORP is currently very high, coming in at 81.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 29.55% is above that of the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income increased by 18.5% when compared to the same quarter one year prior, going from $5,108.00 million to $6,055.00 million.
Microsoft Corporation develops, licenses, and supports software products and services; and designs and sells hardware worldwide. Microsoft has a market cap of $289.0 billion and is part of the technology sector and computer software & services industry. The company has a P/E ratio of 18.00, above the S&P 500 P/E ratio of 18.00. Shares are up 29.6% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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