Microsoft CorporationMSFT
NMS • Technology
$390.49
P/E
23.17
PEG
1.00
FCF Yield
2.5%
Rev Growth YoY
+18.3% YoY
Gross Margin
67.6%
Health Score
10/10
D/E Ratio
0.10
Confidence
MEDIUM
Business Snapshot
Microsoft Corporation is a leading technology company whose primary revenue-generating segments include cloud computing (Azure and other cloud services), productivity software (Office, LinkedIn, Dynamics), and personal computing (Windows, Surface, Xbox, search advertising). It operates in the software-infrastructure market and is a dominant player across cloud services, enterprise software, and operating systems. As a large-cap company with a market capitalisation of $2.90T and trailing twelve month revenue of $318.27B, it possesses vast financial scale. A defining characteristic is its entrenched ecosystem of enterprise customers and its leading position in the shift to cloud computing, providing substantial recurring revenue streams.
Financial Health
Gross margin stands at 67.6%, showing slight compression from 68.0% in the prior year, while net margin is a strong 39.3%. The balance sheet is fortress-quality with a debt/equity ratio of just 0.1x and a current ratio of 1.28x, indicating minimal leverage and adequate short-term liquidity...
Risk Assessment
- VALUATION DIVERGENCE — The FMP DCF fair value is not available, but the Python DCF estimate of $304.8 suggests the current price of $390.49 represents a significant premium.
- 52-WEEK POSITION — The current price of $390.49 is 43% below its 52-week high of $555.45, and also below the midpoint of the 52-week range ($452.33), indicating a downtrending price over the long term.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- MARGIN PRESSURE — Gross margin has contracted slightly from 68.0% to 67.6% year-over-year, suggesting modest cost pressure despite strong net margins....
Gross margin stands at 67.6%, showing slight compression from 68.0% in the prior year, while net margin is a strong 39.3%. The balance sheet is fortress-quality with a debt/equity ratio of just 0.1x and a current ratio of 1.28x, indicating minimal leverage and adequate short-term liquidity. The company generated a massive $71.61B in free cash flow, translating to a free cash flow yield of 2.5%. This exceptional cash generation provides immense capacity for reinvestment in growth initiatives, acquisitions, and shareholder returns through dividends and buybacks, with no risk of dilution.
- VALUATION DIVERGENCE — The FMP DCF fair value is not available, but the Python DCF estimate of $304.8 suggests the current price of $390.49 represents a significant premium. - 52-WEEK POSITION — The current price of $390.49 is 43% below its 52-week high of $555.45, and also below the midpoint of the 52-week range ($452.33), indicating a downtrending price over the long term. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - MARGIN PRESSURE — Gross margin has contracted slightly from 68.0% to 67.6% year-over-year, suggesting modest cost pressure despite strong net margins.
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