Microsoft Corp

Find Ratings Reports
MSFT : NASDAQ : Technology
$64.2 -0.42 | -0.65%
Today's Range: 64.045 - 64.54
Avg. Daily Volume: 2.44261E7
02/27/17 - 4:00 PM ET

Financial Analysis


MICROSOFT CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. MICROSOFT CORP has strong liquidity. Currently, the Quick Ratio is 1.94 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 10.38% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)24090.023796.0
EBITDA ($mil)8343.07570.0
EBIT ($mil)6177.06026.0
Net Income ($mil)5200.05018.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)122781.0102640.0
Total Assets ($mil)224610.0180098.0
Total Debt ($mil)84970.044429.0
Equity ($mil)68809.076780.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin67.8965.0
EBITDA Margin34.6331.81
Operating Margin25.6425.32
Sales Turnover0.380.49
Return on Assets7.466.5
Return on Equity24.3615.25
Debt Q2 FY17 Q2 FY16
Current Ratio2.053.0
Debt/Capital0.550.37
Interest Expense521.0309.0
Interest Coverage11.8619.5


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)7730.07925.0
Div / share0.390.36
EPS0.660.62
Book value / share8.99.69
Institutional Own % n/a n/a
Avg Daily Volume2.4115814E72.7374212E7

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 52.40 for the Software industry and a premium compared to the S&P 500 average of 26.53. To use another comparison, its price-to-book ratio of 7.26 indicates a significant premium versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 8.86. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, MICROSOFT CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MSFT 30.48 Peers 52.40   MSFT 13.50 Peers 23.05

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MSFT is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MSFT is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MSFT 19.79 Peers 58.71   MSFT 0.74 Peers 0.83

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

MSFT is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MSFT trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MSFT 7.26 Peers 8.86   MSFT 47.22 Peers 37.37

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MSFT is trading at a discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

MSFT is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MSFT 5.83 Peers 6.15   MSFT -2.73 Peers 7.42

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MSFT is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MSFT significantly trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades