Microsoft Corp (MSFT, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $455.51 and a daily gain of 0.74%, complemented by an 8.41% increase over the past three months, Microsoft Corp stands out as a formidable player in the tech sector. 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 developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Microsoft Corp has achieved a GF Score of 97, signaling strong future performance prospects.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Understanding Microsoft Corp's Business
Microsoft Corp, with a market cap of $3.39 trillion and annual sales of $236.58 billion, is a leader in both consumer and enterprise software. Known for its Windows operating systems and Office productivity suite, the company operates through three main segments: productivity and business processes, intelligent cloud, and more personal computing. This diversified business model not only fuels Microsoft's financial strength but also supports its expansive growth trajectory.
Financial Strength Breakdown
Microsoft Corp's financial robustness is evident through its impressive Interest Coverage ratio of 38.94 and an Altman Z-Score of 10.48, indicating a strong shield against financial distress. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.34, underscoring a prudent approach to leveraging and financial health.
Profitability Rank Breakdown
Microsoft Corp's profitability is unmatched, with an Operating Margin increase of 5.88% over the past five years, demonstrating its efficiency in converting sales into actual profits. This is further supported by a high Piotroski F-Score and a Predictability Rank of 4.0 stars, which reassures investors of its consistent operational performance.
Growth Rank Breakdown
Microsoft Corp's commitment to growth is evident from its 3-Year Revenue Growth Rate of 15.1%, surpassing 64.44% of its peers in the software industry. The company's EBITDA has also seen significant increases, highlighting its ongoing ability to expand and scale effectively.
Conclusion
Considering Microsoft Corp's exceptional financial strength, profitability, and growth metrics, the GF Score underscores the company's superior position for potential market outperformance. Investors looking for similar opportunities can explore more high-scoring companies through the GF Score Screen.
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.
