Microsoft Corporation (MSFT) Stock Guide

May 24, 2020
40

Before we start: if you're looking for MSFT stock price, you can quickly find it out by visiting Finny and typing "MSFT quote". If you're looking for a quick scoop on MSFT stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "MSFT". You'll get all this info in one place. Or you can just type "MSFT news" to get the latest stock news.

Looking to buy or sell Microsoft Corporation (MSFT)? Interested in getting the full scoop on MSFT, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this MSFT stock guide, we'll address key questions about MSFT, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are MSFT earnings?
2. When is MSFT earnings date?
3. What is MSFT dividend?
4. What is MSFT dividend yield?
5. What is MSFT stock forecast (i.e., prediction)?
6. MSFT buy or sell? What is MSFT Finny Score?
7. What are the reasons to buy MSFT? Why should I buy MSFT stock?
8. What are the reasons to sell MSFT? Why should I sell MSFT stock?
9. What are MSFT key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are MSFT earnings?

MSFT trailing 12-month earnings per share (EPS) is $6.00.

2. When is MSFT earnings date?

MSFT earnings date is July 16, 2020.

3. What is MSFT dividend?

MSFT forward dividend is $2.04.

4. What is MSFT dividend yield?

MSFT forward dividend yield is 1.13%.

Analyst Predictions

5. What is MSFT stock forecast (i.e., prediction)?

Based on MSFT analyst price targets, MSFT stock forecast is $193.94 (for a year from now). That means the average analyst price target for MSFT stock is $193.94. The prediction is based on 34 analyst estimates.

The low price target for MSFT is $133.00, while the high price target is $220.00.

MSFT analyst rating is Buy.

Analysis

6. MSFT buy or sell? What is MSFT Finny Score?

Our quantitative analysis shows 4 reasons to buy and 6 reasons to sell MSFT, resulting in Finny Score of 40.

7. What are the reasons to buy MSFT? Why should I buy MSFT stock?

Here are the reasons to buy MSFT stock:

  • Microsoft has solidified its position as the number-two public cloud vendor with its Azure platform, which should provide substantial growth for several years. The cloud model implies that information and applications are stored, managed and protected in the cloud, from where only necessary amounts of data are accessed by users. Microsoft is increasingly offering their software as-a-service on the basis of subscription for specified periods.
  • Windows 10 is the most rapidly adopted operating system Microsoft has released to date.
  • Microsoft’s newfound willingness to embrace third-party and open-source developer tools should help keep existing application developers on the Microsoft ecosystem, while attracting new ones.
  • Microsoft has a dominant position in the desktop PC market, with its operating systems being used in the majority of PCs worldwide. This is particularly true of the enterprise where the company generates much of its revenue and profits. But enterprise computing is undergoing changes with companies increasingly opting for the BYOD (bring-your-own-device) model.
  • Microsoft is one of the three largest providers of gaming hardware. Its Xbox console was one of the first gaming devices of its kind. Microsoft supplemented the hardware with a number of popular video game titles.
  • Microsoft’s Bing search engine is taking market share largely from smaller rivals and benefiting from its agreement with Yahoo. Strategic actions, such as the agreement with HP to put Bing as the default search engine on its PCs have also helped. Also, Apple and Google are increasingly competing with each other in the mobile segment, which is proving to be of strategic importance to Microsoft.
  • Microsoft's execution has been excellent. This has helped Microsoft build cash and short term investments balance. The significant amount of cash provides the flexibility required to pursue any growth strategy, whether by way of acquisitions or otherwise. Also, the focus on cost reduction has increased, which is a positive for cash flow.
  • MSFT quarterly revenue growth was 14.60%, higher than the industry and sector average revenue growth (2.44% and 1.51%, respectively). See MSFT revenue growth chart.
  • MSFT forward dividend yield is 1.13%, higher than the industry (0.14%) and sector (0.26%) forward dividend yields. See MSFT forward dividend chart.
  • MSFT average analyst rating is Buy. See MSFT analyst rating chart.
  • MSFT cash to debt ratio is 1.64, higher than the average industry (0.19) and sector (0.17) cash to debt ratio. See MSFT cash to debt chart.

8. What are the reasons to sell MSFT? Why should I sell MSFT stock?

Let's look at the reasons to sell MSFT stock (i.e., the bear case):

  • The Windows OS will likely continue to decline as alternatives flood the market and end users increasingly use a wider array of devices. Microsoft continues to be impacted by the tablet and mobile cannibalization of computers. This is a secular negative for the company; the future growth of Windows is greatly dependent on its ability to build position in mobile devices, particularly tablets.
  • Amazon maintains a commanding lead over Microsoft in the public cloud space, and any slip-ups could place Azure further behind the eight ball as Google and others nip at the firm’s heels.
  • Microsoft’s hardware business will remain considerably cyclical and will generally serve as a drag on margins for the foreseeable future.
  • Google poses a particular threat to Microsoft. Although Google’s focus has in the past been on search and online advertising, while Microsoft’s has been on selling its software, the two companies are increasingly pitted against each other because of the conditions in the market. Google is now interested in not just search, but also other digital goods, cloud infrastructure and hardware, which are all important to Microsoft.
  • MSFT stock price ($183.51) is close to the 52-week high ($188.70). Perhaps now is a good time to sell? See MSFT price chart.
  • MSFT profitability is declining. The YoY profit margin change was -8.56 percentage points. See MSFT profitability chart.
  • MSFT Price/Book ratio is 11.97, which is high compared to its industry peers’ P/B ratios. See MSFT forward Price/Book ratio chart.
  • MSFT Price/Sales ratio is 9.87, which is high compared to its industry peers’ P/S ratios. See MSFT forward Price/Sales ratio chart.
  • MSFT Enterprise Value/Revenue multiple is 9.71, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See MSFT Enterprise Value/Revenue chart.
  • MSFT Enterprise Value/EBITDA multiple is 21.02, which is high compared to its industry peers’ Enterprise Value/EBITDA ratios. See MSFT Enterprise Value/EBITDA chart.

Key Stats

9. What are MSFT key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for MSFT:

Metrics MSFT
Price $183.25
Average Price Target / Upside $193.94 / 5.83%
Average Analyst Rating Buy
Forward Dividend Yield 1.13%
Industry Software - Infrastructure
Sector Technology
Number of Employees 131,000
Market Cap $1,369.04B
Forward P/E Ratio 29.07
Price/Book Ratio 9.87
Revenue (TTM) $138.7B
YoY Quarterly Revenue Growth 14.60%
Profit Margin 33.36%

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