ScoreWhy is MicroStrategy, Inc. ?
1
With a Operating Losses, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of -0.55% and Operating profit at -224.73% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Capital Employed (avg) of 0.99% signifying low profitability per unit of total capital (equity and debt)
2
Flat results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at USD -95.59 MM
- INTEREST(9M) At USD 51.47 MM has Grown at 31.04%
- CASH AND EQV(HY) Lowest at USD 114.39 MM
3
With ROCE of -0.16%, it has a risky valuation with a 2.66 Enterprise value to Capital Employed
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -57.32%, its profits have risen by 979.9%
4
High Institutional Holdings at 53.78%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 4.7% over the previous quarter.
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to MicroStrategy, Inc. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is MicroStrategy, Inc. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
MicroStrategy, Inc.
-50.19%
0.10
79.77%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.55%
EBIT Growth (5y)
-224.73%
EBIT to Interest (avg)
5.66
Debt to EBITDA (avg)
71.11
Net Debt to Equity (avg)
0.24
Sales to Capital Employed (avg)
0.09
Tax Ratio
30.43%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
53.78%
ROCE (avg)
0.99%
ROE (avg)
26.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
47
Industry P/E
Price to Book Value
3.05
EV to EBIT
-1662.20
EV to EBITDA
-3024.97
EV to Capital Employed
2.65
EV to Sales
240.51
PEG Ratio
NA
Dividend Yield
0.00%
ROCE (Latest)
-0.16%
ROE (Latest)
6.55%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
NET PROFIT(HY)
Higher at USD 1,658.81 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 16.2 %
EPS(Q)
Highest at USD 32.6
-11What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD -95.59 MM
INTEREST(9M)
At USD 51.47 MM has Grown at 31.04%
CASH AND EQV(HY)
Lowest at USD 114.39 MM
PRE-TAX PROFIT(Q)
At USD -41.69 MM has Fallen at -22.85%
NET PROFIT(Q)
Lowest at USD -29.83 MM
Here's what is working for MicroStrategy, Inc.
EPS
Highest at USD 32.6
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 16.2 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at USD 11.4 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 11.4 MM has Grown at 29.37%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for MicroStrategy, Inc.
Net Profit
At USD -29.83 MM has Fallen at -105.43%
over average net sales of the previous four periods of USD 549.06 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Operating Cash Flow
Lowest at USD -95.59 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
At USD 51.47 MM has Grown at 31.04%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
At USD -41.69 MM has Fallen at -22.85%
over average net sales of the previous four periods of USD -33.94 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD -29.83 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Cash and Eqv
Lowest at USD 114.39 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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