ScoreWhy is Microsoft Corp. ?
1
High Management Efficiency with a high ROE of 37.11%
2
The company is Net-Debt Free
3
Healthy long term growth as Net Sales has grown by an annual rate of 14.79% and Operating profit at 18.84%
4
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at USD 170,141 MM
- DIVIDEND PER SHARE(HY) Highest at USD 4.54
- NET SALES(Q) Highest at USD 82,886 MM
5
With ROE of 30.20%, it has a attractive valuation with a 6.78 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -21.00%, its profits have risen by 26.2% ; the PEG ratio of the company is 0.9
6
High Institutional Holdings at 74.61%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Below par performance in long term as well as near term
- Along with generating -21.00% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Microsoft Corp. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Microsoft Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Microsoft Corp.
-21.0%
-0.43
26.11%
S&P 500
25.41%
1.92
13.25%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.79%
EBIT Growth (5y)
18.84%
EBIT to Interest (avg)
39.26
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.09
Sales to Capital Employed (avg)
0.73
Tax Ratio
18.29%
Dividend Payout Ratio
24.34%
Pledged Shares
0
Institutional Holding
74.61%
ROCE (avg)
62.25%
ROE (avg)
37.11%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
6.78
EV to EBIT
18.30
EV to EBITDA
14.12
EV to Capital Employed
7.44
EV to Sales
8.54
PEG Ratio
0.86
Dividend Yield
5.86%
ROCE (Latest)
40.62%
ROE (Latest)
30.20%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 170,141 MM
DIVIDEND PER SHARE(HY)
Highest at USD 4.54
NET SALES(Q)
Highest at USD 82,886 MM
RAW MATERIAL COST(Y)
Fallen by 1.61% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 97.59 times
-7What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 21.32%
INTEREST COVERAGE RATIO(Q)
Lowest at 6,242.29
DEBT-EQUITY RATIO
(HY)
Highest at 11.38 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.54 times
INTEREST(Q)
Highest at USD 778 MM
Here's what is working for Microsoft Corp.
Operating Cash Flow
Highest at USD 170,141 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 82,886 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Dividend per share
Highest at USD 4.54 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Inventory Turnover Ratio
Highest at 97.59 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 1.61% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Microsoft Corp.
Interest Coverage Ratio
Lowest at 6,242.29
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Dividend Payout Ratio
Lowest at 21.32% and Fallen
In each year in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Interest
Highest at USD 778 MM
in the last five periods and Increased by 5.71% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 11.38 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 4.54 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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