MSTRMSTR
US • —
$86.93
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+6.8% YoY
Gross Margin
68.1%
Health Score
6/10
D/E Ratio
0.16
Confidence
LOW
Business Snapshot
MicroStrategy (MSTR) operates as a business intelligence and enterprise software company, primarily generating revenue through subscription services and product licenses for its analytics platform. The company operates in the competitive enterprise software market, holding a niche position as a provider of analytics and mobility solutions. While market capitalisation is not available in this data, the company trades at a price-to-book ratio of 0.86x and a price-to-sales multiple of 61.06x, indicating the market ascribes significant premium to its revenue stream relative to its book value. A defining characteristic of MicroStrategy is its substantial investment in digital assets, which has introduced significant balance sheet volatility and fundamentally altered its financial profile, making traditional valuation metrics less straightforward.
Financial Health
MicroStrategy reports a gross margin of 68.1%, which indicates solid pricing power in its software business. However, the net margin is unreliably reported at -2482.0% — note this figure may be distorted or reflect a data error, likely due to a significant non-operating write-down or impairment event...
Risk Assessment
- VALUATION — Price/Sales of 61.06x is exceptionally high and implies aggressive growth expectations that may not materialise.
- EARNINGS QUALITY — MicroStrategy beat analyst estimates in only 2 of the last 4 quarters, indicating inconsistent earnings predictability.
- PROFITABILITY — Return on equity of -23.7% confirms the company is destroying shareholder value on an earnings basis.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- DATA INTEGRITY — Reported net margin of -2482.0% is outside a plausible range — note this figure may be distorted or reflect a data error, impairing confidence in fundamental analysis....
MicroStrategy reports a gross margin of 68.1%, which indicates solid pricing power in its software business. However, the net margin is unreliably reported at -2482.0% — note this figure may be distorted or reflect a data error, likely due to a significant non-operating write-down or impairment event. The balance sheet appears conservative with a low debt-to-equity ratio of 0.16x, and strong short-term liquidity is evidenced by a current ratio of 5.62x. Return on equity stands at -23.7%, reflecting sustained net losses that are eroding shareholder equity. Free cash flow is unavailable, making it impossible to assess the company’s ability to self-fund operations. Overall, the company maintains a low-debt, high-liquidity financial structure, but persistent losses and impairment risks constrain its reinvestment capacity and raise the potential for future capital raises.
- VALUATION — Price/Sales of 61.06x is exceptionally high and implies aggressive growth expectations that may not materialise. - EARNINGS QUALITY — MicroStrategy beat analyst estimates in only 2 of the last 4 quarters, indicating inconsistent earnings predictability. - PROFITABILITY — Return on equity of -23.7% confirms the company is destroying shareholder value on an earnings basis. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - DATA INTEGRITY — Reported net margin of -2482.0% is outside a plausible range — note this figure may be distorted or reflect a data error, impairing confidence in fundamental analysis.
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