Microsoft Corporation [NASDAQ: MSFT] shares went lower by -1.05% from its previous closing of $137.52, now trading at the price of $136.08, also adding -1.44 points. Is MSFT stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 28.68 million contracts. Compared to the average trading volume of MSFT shares, the company saw a far better performance. Moreover, the stock has a 7.53B float and a +0.03% run over in the last seven days. MSFT share price has been hovering between $141.68 and $93.96 lately, and is definitely worthy of attention.
Microsoft Corporation [NASDAQ:MSFT]: Analyst Rating and Earnings
Its stock price has been found in the range of 93.96 to 141.68. This is compared to its latest closing price of $137.52.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Wed 23 Oct (In 43 Days).
Fundamental Analysis of Microsoft Corporation [MSFT]
Now let’s turn to look at profitability: with a current Operating Margin for Microsoft Corporation [MSFT] sitting at +33.96 and its Gross Margin at +65.81, this company’s Net Margin is now 31.20%. These measurements indicate that Microsoft Corporation [MSFT] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 23.74, and its Return on Invested Capital has reached 19.90%. Its Return on Equity is 42.41, and its Return on Assets is 14.39. These metrics all suggest that Microsoft Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Microsoft Corporation [MSFT] has generated a Total Debt to Total Equity ratio of 84.49. Similarly, its Total Debt to Total Capital is 42.52, while its Total Debt to Total Assets stands at 30.17. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 15.87, and its Long-Term Debt to Total Capital is 77.31.
What about valuation? This company’s Enterprise Value to EBITDA is 18.85 and its Total Debt to EBITDA Value is 1.59. The Enterprise Value to Sales for this firm is now 8.14, and its Total Debt to Enterprise Value stands at 0.09. Microsoft Corporation [MSFT] has a Price to Book Ratio of 10.01, a Price to Cash Flow Ratio of 19.90 and P/E Ratio of 26.84. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Microsoft Corporation [MSFT] earns $871,542 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.48 and its Total Asset Turnover is 0.46. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.50 and its Current Ratio is 2.53. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Microsoft Corporation [MSFT] has 7.69B shares outstanding, amounting to a total market cap of $1046.12B. Its stock price has been found in the range of 93.96 to 141.68. At its current price, it has moved down by -3.95% from its 52-week high, and it has moved up 44.83% from its 52-week low.
This stock’s Beta value is currently 1.23, which indicates that it is 1.53% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 47.28. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Microsoft Corporation [MSFT] a Reliable Buy?
Shares of Microsoft Corporation [MSFT], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.