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Microsoft Corp

MSFT • Technology

$390.74 $0.4 (0.1%) Last updated: Jun 12, 08:00 PM UTC
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AI Summary

Microsoft's robust 29.8% EPS growth and a high ROE of 33.1% underscore its strong earnings power and competitive advantage in cloud computing, software, and AI investments. Currently trading at a significant discount to its fair value (410.36 vs. 533.57), the stock offers an attractive entry point for growth-oriented investors seeking exposure to technological innovation with solid financial fundamentals.

GoodStock Company Score

7.0/10
Good

Score Breakdown

Management 7.0/10
Balance Sheet 7.9/10
Earnings Power 6.8/10
Sentiment 6.5/10

GoodStock Estimated Valuation

$533.57 – $660.94
Excellent

Valuation Range vs. Current Price

$390.74
Current
$533.57
Avg
$660.94
High
Downside: N/A
Upside: +69.15%

GoodStock Price Momentum

Trending Down
Negative

Momentum Indicators

100-Day Moving Avg Below
YTD vs S&P 500 -22.0%
Price vs 52-Week High 70.35%
RSI 44.08 – Support

MSFT Stock Price

$390.74 +$0.40 (0.10%)
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GoodStockClassification

Theme Quality Momentum Value
Best in Class + + +
Quality at a Price + + -
Contrarian + - +
Yesterday's News + - -
Restructuring - + +
Momentum Trap - + -
Value Trap - - +
Worst in Class - - -
Classification: Contrarian

Contrarian investments go against prevailing market trends. Savvy investors seek opportunities in undervalued assets with potential for a turnaround, betting on market misperceptions. Success depends on accurate analysis and the ability to identify positive catalysts others overlook.

Earnings History

Last Beat
Latest EPS
$3.46
+5.3% surprise
Report Date
Q1
Mar 31, 2025

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Financial Ratios

AI Financial Ratios Summary

The company's strong Earnings Per Share (EPS) of 16.79, combined with a healthy P/E ratio of 24.47, indicates solid profitability and market valuation expectations. Its high Return on Equity (33.13%) reflects efficient use of shareholder capital, while a low Debt-to-Equity ratio of 0.26 and an exceptional Interest Coverage Ratio of 891.8 suggest prudent leverage and ample capacity to meet interest obligations, bolstering financial stability. These ratios interconnect to portray a financially robust company with efficient operations and low financial risk, positioning it favorably for stock appreciation; however, valuation multiples should be monitored to ensure they remain justified by underlying fundamentals.

$16.8
24.47
33.13%
0.26%
891.8
$1.24 M
1.35%
$3060 B

Operational Ratios

AI Operational Ratios Summary

The company's high operating margin of 46.75% and gross margin of 68.31% indicate strong operational efficiency, allowing it to effectively control costs while generating substantial revenue. The net profit margin of 39.34% further reflects robust profitability, supported by a solid return on assets of 19.15%, suggesting efficient asset utilization. Additionally, the positive free cash flow CAGR of 9.62% and significant CAPEX growth of 33.12% point to ongoing investments and potential for future expansion, which could enhance profitability and sustain long-term growth.

46.75%
68.31%
39.34%
19.15%
$3.48
0.84%
9.62%
33.12%

Valuation Ratios

AI Valuation Ratios Summary

The company's EBITD per share of 25.14 and a PEG ratio of 0.82 suggest solid earnings growth potential, with the PEG ratio being below 1 indicating the stock may be undervalued relative to its earnings growth prospects. However, the negative price-to-SAP ratio of -35.27 raises concerns and likely indicates data inconsistency or a misinterpretation, making it difficult to draw definitive conclusions from that metric alone. Overall, the company's favorable PFCF and book value per share suggest reasonable valuation levels, pointing to potential investment opportunity if the negative ratio is clarified or corrected.

$555
$356
$25.1
-35.27%
0.82
$42
$46.2
12.7