Microsoft Stock Piotroski F Score

MSFT Stock  USD 415.50  1.86  0.45%   
This module uses fundamental data of Microsoft to approximate its Piotroski F score. Microsoft F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Microsoft. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Microsoft financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out Microsoft Altman Z Score, Microsoft Correlation, Microsoft Valuation, as well as analyze Microsoft Alpha and Beta and Microsoft Hype Analysis.
For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.
  
At this time, Microsoft's Total Debt is comparatively stable as compared to the past year. Debt Current is likely to gain to about 5 B in 2024, whereas Issuance Repayment of Debt Securities is likely to drop (2.5 B) in 2024. At this time, Microsoft's Cash Flow Per Share is comparatively stable as compared to the past year. Revenue to Assets is likely to gain to 0.61 in 2024, whereas Return on Investment is likely to drop 40.26 in 2024.
At this time, it appears that Microsoft's Piotroski F Score is Frail. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
3.0
Piotroski F Score - Frail
Current Return On Assets

Positive

Focus
Change in Return on Assets

Decreased

Focus
Cash Flow Return on Assets

Positive

Focus
Current Quality of Earnings (accrual)

Decreasing

Focus
Asset Turnover Growth

Decrease

Focus
Current Ratio Change

Increase

Focus
Long Term Debt Over Assets Change

Higher Leverage

Focus
Change In Outstending Shares

Increase

Focus
Change in Gross Margin

No Change

Focus

Microsoft Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Microsoft is to make sure Microsoft is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Microsoft's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Microsoft's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Shares Diluted6.9 B6.7 B
Fairly Up
Slightly volatile
Weighted Shares6.8 B6.7 B
Fairly Up
Slightly volatile
Return on Assets0.190.22
Fairly Down
Slightly volatile
Net Cash Flow from Operations83.2 B100.7 B
Significantly Down
Slightly volatile
Current Liabilities101.8 B119.8 B
Fairly Down
Slightly volatile
Total Liabilities212.1 B236.6 B
Moderately Down
Slightly volatile
Gross Margin0.610.62
Fairly Down
Slightly volatile
Total Debt69.9 B69 B
Fairly Up
Slightly volatile
Asset Turnover0.480.5
Sufficiently Down
Slightly volatile
Current Assets201.3 B211.9 B
Notably Down
Slightly volatile
Total Assets401.5 B473.8 B
Fairly Down
Slightly volatile

Microsoft F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Microsoft's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Microsoft in a much-optimized way.

About Microsoft Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value per Share

34.36

At this time, Microsoft's Book Value per Share is comparatively stable as compared to the past year.

Microsoft Current Valuation Drivers

We derive many important indicators used in calculating different scores of Microsoft from analyzing Microsoft's financial statements. These drivers represent accounts that assess Microsoft's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Microsoft's important valuation drivers and their relationship over time.
201920202021202220232024 (projected)
Net Income Per Employee270.9K338.5K329.1K327.4K294.7K250.5K
Revenue Per Employee875.0K928.7K897.1K958.9K863.0K804.8K
Average Assets287.1B311.9B346.3B379.1B436.0B372.4B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA68.4B85.1B100.2B105.1B120.9B96.8B
Earnings Before Interest Taxes and Depreciation Amortization USD68.4B85.1B100.2B105.1B120.9B96.8B
Earnings before Tax53.0B71.1B83.7B89.3B102.7B110.8B
Average Equity112.2B132.5B160.4B189.4B217.8B176.1B
Enterprise Value1.5T2.0T1.9T2.5T2.9T3.1T
Free Cash Flow45.2B56.1B65.1B59.5B68.4B58.5B
Invested Capital113.1B125.1B147.4B179.3B206.2B163.6B
Invested Capital Average113.5B120.7B141.3B166.1B191.0B152.5B
Market Capitalization1.5T2.0T1.9T2.5T2.9T3.1T
Tangible Asset Value250.9B276.3B286.0B334.7B384.9B328.9B
Working Capital109.6B95.7B74.6B80.1B92.1B99.6B

Microsoft ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Microsoft's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Microsoft's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Microsoft Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Microsoft's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Microsoft using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Microsoft based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington. Microsoft Corp operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 221000 people.

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When determining whether Microsoft is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Microsoft Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Microsoft Stock. Highlighted below are key reports to facilitate an investment decision about Microsoft Stock:
Check out Microsoft Altman Z Score, Microsoft Correlation, Microsoft Valuation, as well as analyze Microsoft Alpha and Beta and Microsoft Hype Analysis.
For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.
Note that the Microsoft information on this page should be used as a complementary analysis to other Microsoft's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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Is Microsoft's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Microsoft. If investors know Microsoft will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Microsoft listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.332
Dividend Share
2.86
Earnings Share
11.05
Revenue Per Share
30.612
Quarterly Revenue Growth
0.176
The market value of Microsoft is measured differently than its book value, which is the value of Microsoft that is recorded on the company's balance sheet. Investors also form their own opinion of Microsoft's value that differs from its market value or its book value, called intrinsic value, which is Microsoft's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Microsoft's market value can be influenced by many factors that don't directly affect Microsoft's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Microsoft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microsoft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.