NEW YORK (TheStreet) -- Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report shares are down 0.84% to $46 in trading on Wednesday as the international software giant unveiled the newest version of its ubiquitous Windows operating system at an event at its Redmond, WA headquarters today.
The hardware and software company unveiled Windows 10 at its event today and announced that it would be a free upgrade to users of the most recent versions of Windows and Windows Phone software, according to Reuters.
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The company said that it would add its personal digital assistant, Cortana, to PCs running the new software among other upgrades at the ongoing event. Cortana had previously only been available to Windows Phone users.
Windows 7, Windows 8.1 and Windowns Phone 8.1 users will all be eligible for the free upgrade for one year after the software is rolled out in the third quarter of this year.
Microsoft shares have changed hands 21.6 million times so far today. The company's three month daily trading average is just over 30 million shares.
TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, reasonable valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 26.6%. Since the same quarter one year prior, revenues rose by 25.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Although MSFT's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. To add to this, MSFT has a quick ratio of 2.28, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has slightly increased to $8,354.00 million or 1.81% when compared to the same quarter last year. Despite an increase in cash flow, MICROSOFT CORP's average is still marginally south of the industry average growth rate of 11.33%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: MSFT Ratings Report