10-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Microsoft

RESEARCH HISTORY	2022		2023		2024		2025
VALUE
VALUE	49		45		57		59
GROWTH
GROWTH	95		59		51		49
SAFETY
SAFETY	95		89		72		74
SENTIMENT
SENTIMENT	100		96		100		new
360° VIEW
360° VIEW	100		100		86		new

Most recent update of the stock research: 10-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Microsoft is in the corresponding investment strategy.
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Combined financial peformance in Detail

ANALYSIS: With an Obermatt Combined Rank of 72 (better than 72% compared with investment alternatives), Microsoft (Systems Software, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Microsoft are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives), are safely financed (Safety Rank of 74, which means low debt burdens), but show below-average growth (Growth Rank of 49). ...read more

RECOMMENDATION: A Combined Rank of 72, is a buy recommendation based on Microsoft's financial characteristics. As the company Microsoft's key financial metrics exhibit good value (Obermatt Value Rank of 59) but low growth (Obermatt Growth Rank of 49) while being safely financed (Obermatt Safety Rank of 74), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 59% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

RESEARCH HISTORY	2022		2023		2024		2025
VALUE
VALUE	49		45		57		59
GROWTH
GROWTH	95		59		51		49
SAFETY
SAFETY	95		89		72		74
COMBINED
COMBINED	100		85		78		72

Last update of combined financial performance: 10-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Microsoft the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 59 (better than 59% compared with alternatives), Microsoft shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Microsoft. Price-to-Profit (also referred to as price-earnings, P/E) is 52 which means that the stock price compared with what market professionals expect for future profits is lower than for 52% of comparable companies, indicating a good value concerning Microsoft's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 34, which means that the stock price is lower as regards to invested capital than for 34% of comparable investments. On the other hand, Price-to-Sales is less favorable than 85% of alternatives (only 15% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 17% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 59, is a buy recommendation based on Microsoft's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022		2023		2024		2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	13		12		19		15
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	50		45		59		52
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	31		34		34		34
DIVIDEND YIELD
DIVIDEND YIELD	80		83		85		83
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	49		45		57		59

Last update of Value Rank: 10-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Microsoft; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 49 (better than 49% compared with alternatives), Microsoft shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Microsoft. Sales Growth has a rank of 68, which means that, currently, professionals expect the company to grow more than 68% of its competitors. Profit Growth with a rank of 51 is also above average. But Capital Growth has only a rank of 43, and Stock Returns with 49 are also below-average. Stock returns for Microsoft have recently been below 51% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 49, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Microsoft. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022		2023		2024		2025
REVENUE GROWTH
REVENUE GROWTH	51		71		64		68
PROFIT GROWTH
PROFIT GROWTH	62		36		46		51
CAPITAL GROWTH
CAPITAL GROWTH	60		34		39		43
STOCK RETURNS
STOCK RETURNS	100		61		49		49
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	95		59		51		49

Last update of Growth Rank: 10-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Microsoft.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 74 (better than 74% compared with alternatives), the company Microsoft has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Microsoft is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Microsoft. Leverage is at a rank of 54, meaning the company has a below-average debt-to-equity ratio. It has less debt than 54% of its competitors. Liquidity is also good at a rank of 82, meaning the company generates more profit to service its debt than 82% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 37, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 74 (better than 74% compared with alternatives), Microsoft has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Microsoft. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Microsoft and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022		2023		2024		2025
LEVERAGE
LEVERAGE	31		56		50		54
REFINANCING
REFINANCING	97		37		30		37
LIQUIDITY
LIQUIDITY	78		92		86		82
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	95		89		72		74

Last update of Safety Rank: 10-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Microsoft and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022		2023		2024		2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a		93		89		new
OPINIONS CHANGE
OPINIONS CHANGE	50		50		84		new
PRO HOLDINGS
PRO HOLDINGS	97		78		97		new
MARKET PULSE
MARKET PULSE	92		86		98		new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	100		96		100		new

Last update of Sentiment Rank: 10-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Microsoft.
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Free stock analysis by the purely fact based Obermatt Method for Microsoft from July 10, 2025.

Obermatt Portfolio Performance
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