MicroStrategy, Inc. (MSTR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is MicroStrategy, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.15% and Operating profit at -193.56% over the last 5 years

Positive results in Dec 25

CASH AND EQV(HY) Highest at USD 2,359.54 MM
DEBT-EQUITY RATIO (HY) Lowest at 11.65 %
NET PROFIT(Q) Highest at USD 4,999.18 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -50.41%, its profits have risen by 928.3% ; the PEG ratio of the company is 0

High Institutional Holdings at 62.48%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 7.17% over the previous quarter.

Below par performance in long term as well as near term

Along with generating -50.41% 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 Report

Verdict Report

How 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, Low Return

Absolute

Risk Adjusted

Volatility

MicroStrategy, Inc.

-50.41%

-0.10

75.51%

S&P 500

18.81%

0.98

19.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.15%

EBIT Growth (5y)

-193.56%

EBIT to Interest (avg)

5.66

Debt to EBITDA (avg)

71.11

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.05

Tax Ratio

30.43%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

62.48%

ROCE (avg)

0.99%

ROE (avg)

26.43%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.96

EV to EBIT

-1347.43

EV to EBITDA

-3875.01

EV to Capital Employed

0.97

EV to Sales

115.50

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

-0.07%

ROE (Latest)

13.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

CASH AND EQV(HY)

Highest at USD 2,359.54 MM

DEBT-EQUITY RATIO (HY)

Lowest at 11.65 %

NET PROFIT(Q)

Highest at USD 4,999.18 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -67.24 MM

RAW MATERIAL COST(Y)

Grown by 7.89% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.36 times

EPS(Q)

Lowest at USD -42.93

Here's what is working for MicroStrategy, Inc.

Net Profit

At USD 4,999.18 MM has Grown at 909.96%

over average net sales of the previous four periods of USD 494.99 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Profit

Highest at USD 4,999.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 2,359.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 11.65 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for MicroStrategy, Inc.

Operating Cash Flow

Lowest at USD -67.24 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

EPS

Lowest at USD -42.93

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 2.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.89% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales