Microsoft Corp Stock Research

Market Summary

USD267.56+10.79

Market Closed

4.20%

MSFT Stock Price

MSFT RSI Chart

MSFT Valuation

Market Cap

2.0T

Price/Earnings (Trailing)

29.54

Price/Sales (Trailing)

9.76

EV/EBITDA

23.94

Price/Free Cashflow

33.42

MSFT Price/Sales (Trailing)

MSFT Profitability

EBT Margin

40.47%

Return on Equity

36.83%

Return on Assets

18.5%

Free Cashflow Yield

2.99%

MSFT Fundamentals

MSFT Revenue

Revenue (TTM)

204.1B

Revenue Y/Y

1.97%

Revenue Q/Q

5.24%

MSFT Earnings

Earnings (TTM)

67.4B

Earnings Y/Y

-12.47%

Earnings Q/Q

-6.44%

Price Action

52 Week Range

212.83313.66

(Low)(High)

Last 7 days

8.0%

Last 30 days

19.0%

Last 90 days

19.5%

Trailing 12 Months

-10.3%

MSFT Financial Health

Current Ratio

1.93

Debt/Equity

0.27

Debt/Cashflow

1.74

MSFT Investor Care

Dividend Yield

0.97%

Dividend/Share (TTM)

2.6

Buy Backs (1Y)

0.77%

Diluted EPS (TTM)

9.01

Peers (Alternatives to Microsoft)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
MSFT	2.0T	204.1B	18.95%	-10.26%	29.54	9.76	10.38%	-5.25%
ORCL	236.5B	46.1B	2.81%	10.15%	26.88	5.13	11.29%	-14.28%
ADBE	177.3B	17.6B	15.35%	-24.31%	37.28	10.07	11.54%	-1.37%
CRM	170.8B	-	21.90%	-21.06%	614.27	5.56	24.56%	-84.01%
ZM	25.0B	4.3B	21.80%	-40.14%	35.82	5.76	11.14%	-39.03%
AZPN	12.1B	693.1M	-3.12%	59.08%	44.35	17.39	-2.84%	-14.76%
MID-CAP
PLAN	9.6B	631.5M	-1.97%	16.85%	-45.68	15.19	33.30%	-26.60%
MANH	9.1B	767.1M	23.12%	16.51%	81.59	12.3	15.59%	16.73%
GWRE	6.4B	842.0M	20.72%	-20.92%	-32.02	7.55	13.87%	-103.37%
APPN	3.1B	447.2M	37.23%	-21.13%	-22.12	7.04	29.28%	-105.78%
EPAY	2.6B	506.4M	0.39%	55.58%	-71.14	5.11	10.10%	-203.10%
PING	2.4B	308.3M	1.17%	7.67%	-23.16	7.93	13.75%	-237.98%
SMALL-CAP
ZUO	1.2B	383.7M	35.49%	-46.43%	-9.29	3.03	14.43%	-50.89%
YEXT	947.6M	399.9M	24.32%	-4.57%	-11.66	2.37	4.73%	8.15%
UPLD	284.4M	314.2M	13.01%	-53.55%	-5.35	0.91	3.18%	5.68%

Financials for Microsoft

Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	0.5%	204,094	203,075	198,270	192,557	184,903
Gross Profit	0.4%	139,110	138,619	135,620	132,345	127,261
S&GA Expenses	1.3%	22,704	22,404	21,825	21,378	20,865
R&D Expenses	4.3%	26,627	25,541	24,512	23,350	22,248
EBITDA	-2.5%	84,612	86,788	98,379	94,054	-
EBITDA Margin	-3.0%	0.41*	0.43*	0.50*	0.49*	-
Earnings Before Taxes	-2.6%	82,588	84,764	83,716	82,634	79,680
EBT Margin	-3.1%	0.40*	0.42*	0.42*	0.43*	-
Interest Expenses	-1.9%	2,024	2,063	2,120	2,250	-
Net Income	-3.4%	67,449	69,789	72,738	72,456	71,185
Net Income Margin	-3.8%	0.33*	0.34*	0.37*	0.38*	-
Free Cahsflow	-5.9%	59,618	63,334	65,149	63,649	-

* denotes actual numbers (not divided by Millions)

Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	1.3%	364,552	359,784	364,840	344,607	340,389
Current Assets	-1.9%	157,823	160,812	169,684	153,922	174,188
Cash Equivalents	-31.6%	15,646	22,884	13,931	12,498	20,604
Inventory	-30.2%	2,980	4,268	3,742	3,296	3,019
Net PPE	7.4%	82,755	77,037	74,398	70,298	67,214
Goodwill	0.7%	67,905	67,459	67,524	67,371	50,921
Liabilities	-2.6%	181,416	186,218	198,298	181,683	180,379
Current Liabilities	-6.5%	81,718	87,389	95,082	77,439	77,510
Long Term Debt	-2.3%	48,622	49,781	49,926	53,258	-
LT Debt, Current	23.1%	3,997	3,248	2,749	1,749	4,998
LT Debt, Non Current	-2.8%	44,119	45,374	47,032	48,177	48,260
Shareholder's Equity	5.5%	183,136	173,566	166,542	162,924	160,010
Retained Earnings	7.6%	99,368	92,374	84,281	79,633	75,045
Accumulated Depreciation	4.7%	63,459	60,638	59,660	58,053	55,277
Shares Outstanding	-0.1%	7,447	7,457	7,464	7,483	7,505
Float	-	2,500,000	-	-	-	-

* denotes actual numbers (not divided by Millions)

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	-3.8%	84,386	87,693	89,035	87,116	83,909
Share Based Compensation	8.0%	8,633	7,992	7,502	7,076	6,695
Cashflow From Investing	-19.8%	-36,182.00	-30,193.00	-30,311.00	-31,435.00	-24,948.00
Cashflow From Financing	1.2%	-52,846.00	-53,483.00	-58,876.00	-56,978.00	-52,825.00
Dividend Payments	2.2%	18,964	18,550	18,135	17,717	17,293
Buy Backs	-6.5%	28,611	30,585	32,696	31,116	29,224

Risks for MSFT

What is the probability of a big loss on MSFT?

35%

Probability that Microsoft stock will be more than 20% underwater in next one year

5.4%

Probability that Microsoft stock will be more than 30% underwater in next one year.

Probability that Microsoft stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does MSFT drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Microsoft was unfortunately bought at previous high price.

Drawdowns

Returns for MSFT

Cumulative Returns on MSFT

28.0%

10-Year Cumulative Returns

29.3%

7-Year Cumulative Returns

27.3%

5-Year Cumulative Returns

14.4%

3-Year Cumulative Returns

What are the long-term rolling returns for MSFT?

FIve years rolling returns for Microsoft.

Annualized Returns

Which funds bought or sold MSFT recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-02-06	FLOSSBACH VON STORCH AG	added	1.86	60,095,900	1,288,850,000	4.92%
2023-02-06	DILLON & ASSOCIATES INC	added	0.63	118,000	3,322,000	0.72%
2023-02-06	CHECK CAPITAL MANAGEMENT INC/CA	reduced	-0.42	35,000	1,422,000	0.07%
2023-02-06	AMARILLO NATIONAL BANK	reduced	-6.62	-167,942	4,186,060	0.97%
2023-02-06	Main Street Research LLC	added	6.78	340,332	3,764,330	0.92%
2023-02-06	Ramsay, Stattman, Vela & Price, Inc.	added	0.98	1,129,500	29,494,500	6.64%
2023-02-06	MARTIN & CO INC /TN/	reduced	-2.58	25,674	8,002,670	2.11%
2023-02-06	WRAPMANAGER INC	added	4.98	416,000	5,551,000	1.78%
2023-02-06	Cumberland Partners Ltd	reduced	-12.22	-4,325,220	40,689,800	4.29%
2023-02-06	MERIDIAN INVESTMENT COUNSEL INC.	reduced	-0.16	196,000	7,193,000	2.87%

Latest Funds Activity

Are funds buying MSFT calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own MSFT

No. of Funds

Microsoft News

Schedule 13G FIlings of Microsoft

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Jan 31, 2023	blackrock inc.	7.1%	532,084,843	SC 13G/A
Feb 10, 2022	vanguard group inc	8.20%	615,950,062	SC 13G/A
Feb 08, 2022	blackrock inc.	6.9%	519,712,655	SC 13G/A
Feb 10, 2021	vanguard group inc	8.12%	614,100,233	SC 13G/A
Feb 05, 2021	blackrock inc.	6.8%	515,872,379	SC 13G/A
Feb 12, 2020	vanguard group inc	8.17%	623,667,281	SC 13G/A
Feb 05, 2020	blackrock inc.	6.8%	515,197,221	SC 13G/A

MSFT Fair Value

Microsoft fair value in different scenarios

The table shows the Fair Value estimates for Microsoft for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	196.21 -26.67%	358.75 34.08%	513.95 92.09%	610.28 128.09%	734.80 174.63%
Current Inflation	177.42 -33.69%	315.51 17.92%	442.29 65.30%	523.48 95.65%	625.82 133.90%
Very High Inflation	154.70 -42.18%	264.90 -0.99%	360.47 34.72%	424.63 58.70%	502.73 87.89%

Fair Value

Very Pessimistic

Pessimistic

Base Case

Optimistic

Very Optimistic

Very Low Inflation

196.21

-26.67%

358.75

34.08%

513.95

92.09%

610.28

128.09%

734.80

174.63%

Current Inflation

177.42

-33.69%

315.51

17.92%

442.29

65.30%

523.48

95.65%

625.82

133.90%

Very High Inflation

154.70

-42.18%

264.90

-0.99%

360.47

34.72%

424.63

58.70%

502.73

87.89%

Historical Microsoft Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Microsoft

View All Filings

Date Filed	Form Type	Document
Feb 01, 2023	4	Insider Trading
Feb 01, 2023	4	Insider Trading
Feb 01, 2023	4	Insider Trading
Feb 01, 2023	4	Insider Trading
Feb 01, 2023	4	Insider Trading
Feb 01, 2023	4	Insider Trading
Feb 01, 2023	4	Insider Trading
Feb 01, 2023	4	Insider Trading
Feb 01, 2023	4	Insider Trading
Feb 01, 2023	4	Insider Trading

Latest Insider Trading transactions for MSFT

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-01-31	STANTON JOHN W	acquired	-	-	237	-
2023-01-31	SCHARF CHARLES W	acquired	-	-	237	-
2023-01-31	Walmsley Emma N	acquired	-	-	237	-
2023-01-31	WARRIOR PADMASREE	acquired	-	-	237	-
2023-01-31	List Teri	acquired	-	-	237	-
2023-01-31	Johnston Hugh F	acquired	-	-	237	-
2023-01-31	Walmsley Emma N	sold (taxes)	-17,619.3	247.81	-71.1	-
2023-01-17	Jolla Alice L.	sold (taxes)	-48,067.5	239.23	-200.926	chief accounting officer
2022-12-15	Jolla Alice L.	sold (taxes)	-68,017.5	257.22	-264.433	chief accounting officer
2022-12-12	List Teri	acquired	-	-	233	-

About Microsoft

Satya Nadella

www.microsoft.com

65535

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, as well as related Client Access Licenses (CAL); Skype, Outlook.com, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions. Its Intelligent Cloud segment licenses SQL, Windows Servers, Visual Studio, System Center, and related CALs; GitHub that provides a collaboration platform and code hosting service for developers; and Azure, a cloud platform. It also offers support services and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions; and training and certification on Microsoft products. Its More Personal Computing segment provides Windows original equipment manufacturer (OEM) licensing and other non-volume licensing of the Windows operating system; Windows Commercial, such as volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows Internet of Things; and MSN advertising. It also offers Surface, PC accessories, PCs, tablets, gaming and entertainment consoles, and other devices; Gaming, including Xbox hardware, and Xbox content and services; video games and third-party video game royalties; and Search, including Bing and Microsoft advertising. It sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online stores, and retail stores. It has collaborations with Dynatrace, Inc., Morgan Stanley, Micro Focus, WPP plc, ACI Worldwide, Inc., and iCIMS, Inc., as well as strategic relationships with Avaya Holdings Corp. and wejo Limited. Microsoft Corporation was founded in 1975 and is based in Redmond, Washington.

MSFT Income Statement

2022-12-31

INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Revenue	$ 52,747	$ 51,728	$ 102,869	$ 97,045
Cost of revenue	17,488	16,960	32,940	30,606
Gross margin	35,259	34,768	69,929	66,439
Research and development	6,844	5,758	13,472	11,357
Sales and marketing	5,679	5,379	10,805	9,926
General and administrative	2,337	1,384	3,735	2,671
Operating income	20,399	22,247	41,917	42,485
Other income (expense), net	(60)	268	(6)	554
Income before income taxes	20,339	22,515	41,911	43,039
Provision for income taxes	3,914	3,750	7,930	3,769
Net income	$ 16,425	$ 18,765	$ 33,981	$ 39,270
Earnings per share:
Basic	$ 2.20	$ 2.50	$ 4.56	$ 5.23
Diluted	$ 2.20	$ 2.48	$ 4.54	$ 5.19
Weighted average shares outstanding:
Basic	7,451	7,505	7,454	7,509
Diluted	7,473	7,555	7,479	7,561
Product
Revenue	$ 16,517	$ 20,779	$ 32,258	$ 37,410
Cost of revenue	5,690	6,331	9,992	10,123
Service and Other
Revenue	36,230	30,949	70,611	59,635
Cost of revenue	$ 11,798	$ 10,629	$ 22,948	$ 20,483

MSFT Balance Sheet

2022-12-31

BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2022	Jun. 30, 2022
Current assets:
Cash and cash equivalents	$ 15,646	$ 13,931
Short-term investments	83,862	90,826
Total cash, cash equivalents, and short-term investments	99,508	104,757
Accounts receivable, net of allowance for doubtful accounts of $485 and $633	35,833	44,261
Inventories	2,980	3,742
Other current assets	19,502	16,924
Total current assets	157,823	169,684
Property and equipment, net of accumulated depreciation of $63,459 and $59,660	82,755	74,398
Operating lease right-of-use assets	13,624	13,148
Equity investments	7,097	6,891
Goodwill	67,905	67,524
Intangible assets, net	10,354	11,298
Other long-term assets	24,994	21,897
Total assets	364,552	364,840
Current liabilities:
Accounts payable	15,354	19,000
Current portion of long-term debt	3,997	2,749
Accrued compensation	9,030	10,661
Short-term income taxes	3,553	4,067
Short-term unearned revenue	36,982	45,538
Other current liabilities	12,802	13,067
Total current liabilities	81,718	95,082
Long-term debt	44,119	47,032
Long-term income taxes	24,169	26,069
Long-term unearned revenue	2,644	2,870
Deferred income taxes	289	230
Operating lease liabilities	11,998	11,489
Other long-term liabilities	16,479	15,526
Total liabilities	181,416	198,298
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,447 and 7,464	90,225	86,939
Retained earnings	99,368	84,281
Accumulated other comprehensive loss	(6,457)	(4,678)
Total stockholders’ equity	183,136	166,542
Total liabilities and stockholders’ equity	$ 364,552	$ 364,840