Microsoft Corp (MSFT, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position and promising market prospects. With a current share price of $441.04, Microsoft Corp has experienced a slight daily decrease of 0.12%, yet it maintains a positive three-month performance with a gain of 3.97%. A detailed evaluation using the GF Score indicates that Microsoft Corp is poised for significant growth, making it a compelling choice for investors.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects of a company's financials. This system, which has been backtested from 2006 to 2021, suggests that stocks with higher GF Scores typically yield better long-term returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Microsoft Corp boasts a GF Score of 97, indicating top-tier growth prospects.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Understanding Microsoft Corp's Business
Microsoft Corp, with a market cap of $3.28 trillion and annual sales of $236.58 billion, is a powerhouse in both consumer and enterprise software. Known for its Windows operating systems and Office productivity suite, the company operates across three major segments: productivity and business processes, intelligent cloud, and more personal computing. This diversification across high-demand areas positions Microsoft well for sustained growth.
Financial Strength Breakdown
Microsoft Corp's financial robustness is evident in its Financial Strength rating of 8/10. The company's Interest Coverage ratio stands at an impressive 38.94, significantly above the benchmark set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 10.27 indicates a strong buffer against financial distress, complemented by a strategic Debt-to-Revenue ratio of 0.34.
Profitability and Growth Metrics
Microsoft Corp's Profitability Rank is exceptional at 10/10, supported by a consistent increase in Operating Margin over the past five years. The company's growth is equally impressive, with a 3-Year Revenue Growth Rate of 15.1%, outperforming a significant portion of its industry peers. This sustained growth is further highlighted by a robust increase in EBITDA over recent years.
Conclusion
Considering Microsoft Corp's strong financial metrics, profitability, and growth, the GF Score underscores the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen available to GuruFocus Premium members.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
