Microsoft CorporationMSFT
NMS • Technology
$529.76
P/E
29.41
PEG
0.94
FCF Yield
1.7%
Rev Growth YoY
+17.7% YoY
Gross Margin
67.2%
Health Score
8/10
D/E Ratio
0.09
Confidence
MEDIUM
Business Snapshot
Microsoft Corporation is a technology company operating in the Software - Infrastructure industry, generating revenue across cloud computing, productivity software, and enterprise platforms. It operates in one of the most competitive segments of global technology, where it functions as a dominant player with entrenched enterprise relationships and a broad product ecosystem. The company is a large-cap titan with a market capitalisation of $3.93 trillion and trailing twelve-month revenue of $331.84 billion, placing it among the largest businesses in the world by financial scale. Its defining characteristic is the sheer breadth of its enterprise footprint, which spans cloud infrastructure, operating systems, and business software, creating deep switching costs for corporate customers. This scale and diversification underpin a highly profitable model, with a TTM net income of $133.75 billion.
Financial Health
Gross margin stands at 67.2%, a slight decline from 67.6% in the prior year, while net margin is a robust 40.3%, reflecting exceptional bottom-line profitability. The balance sheet is fortress-like, with a debt/equity ratio of just 0.09x and a current ratio of 1.23x, indicating minimal leverage and adequate short-term liquidity...
Risk Assessment
- VALUATION — The current price of $529.76 represents a 79.7% premium to the Python DCF estimate of $294.82, indicating potential overvaluation on a cash flow basis.
- EARNINGS QUALITY — The company beat estimates in 4 out of 4 recent quarters, reflecting strong guidance credibility rather than a risk.
- DEBT / LIQUIDITY — Debt/equity of 0.09x and a current ratio of 1.23x indicate a conservative balance sheet with no leverage concerns.
- 52-WEEK POSITION — The current price of $529.76 is above the midpoint of the 52-week range ($451.46), sitting 4.3% below the 52-week high of $553.72.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow is positive at $66.99 billion, but the FCF yield of 1.7% is modest relative to the market capitalisation.
- INSIDER — Insiders recorded 0 buys versus 3 sells over the last 90 days, a net selling signal that warrants monitoring....
Gross margin stands at 67.2%, a slight decline from 67.6% in the prior year, while net margin is a robust 40.3%, reflecting exceptional bottom-line profitability. The balance sheet is fortress-like, with a debt/equity ratio of just 0.09x and a current ratio of 1.23x, indicating minimal leverage and adequate short-term liquidity. Free cash flow is substantial at $66.99 billion, though the FCF yield of 1.7% is modest relative to the company's massive market capitalisation. Return on equity of 34.0% demonstrates highly efficient use of shareholder capital. Overall, the financial health is excellent, providing ample capacity for reinvestment, dividends, and strategic acquisitions without meaningful dilution risk.
- VALUATION — The current price of $529.76 represents a 79.7% premium to the Python DCF estimate of $294.82, indicating potential overvaluation on a cash flow basis. - EARNINGS QUALITY — The company beat estimates in 4 out of 4 recent quarters, reflecting strong guidance credibility rather than a risk. - DEBT / LIQUIDITY — Debt/equity of 0.09x and a current ratio of 1.23x indicate a conservative balance sheet with no leverage concerns. - 52-WEEK POSITION — The current price of $529.76 is above the midpoint of the 52-week range ($451.46), sitting 4.3% below the 52-week high of $553.72. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow is positive at $66.99 billion, but the FCF yield of 1.7% is modest relative to the market capitalisation. - INSIDER — Insiders recorded 0 buys versus 3 sells over the last 90 days, a net selling signal that warrants monitoring.
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