| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
In the fast-paced and highly competitive business world of today, conducting thorough company analysis is essential for investors and industry observers. In this article, we will conduct an extensive industry comparison, evaluating Microsoft (NASDAQ:MSFT) in relation to its major competitors in the Software industry. Through a detailed examination of key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and illuminate company's performance in the industry.
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Microsoft Corp | 38.39 | 11.33 | 13.87 | 8.19% | $44.43 | $52.43 | 18.1% |
| Oracle Corp | 65.59 | 33.44 | 13.83 | 13.12% | $6.12 | $10.04 | 12.17% |
| ServiceNow Inc | 117 | 17.66 | 16.14 | 3.65% | $0.65 | $2.49 | 22.38% |
| Palo Alto Networks Inc | 135.69 | 18.78 | 16.70 | 3.37% | $0.68 | $1.86 | 15.84% |
| Fortinet Inc | 34.09 | 31.82 | 10.45 | 21.88% | $0.56 | $1.32 | 13.64% |
| Nebius Group NV | 152.29 | 7.80 | 106.64 | 16.85% | $0.61 | $0.08 | 594.48% |
| Gen Digital Inc | 28.35 | 7.09 | 4.01 | 5.83% | $0.58 | $0.99 | 30.26% |
| Monday.Com Ltd | 259.75 | 8.53 | 9.50 | 0.14% | $-0.01 | $0.27 | 26.64% |
| UiPath Inc | 549.33 | 5.25 | 6.02 | 0.09% | $-0.02 | $0.3 | 14.38% |
| CommVault Systems Inc | 94.93 | 20.71 | 7.30 | 6.81% | $0.03 | $0.23 | 25.51% |
| Dolby Laboratories Inc | 24.86 | 2.48 | 4.87 | 1.78% | $0.07 | $0.27 | 9.25% |
| Qualys Inc | 25.51 | 9.10 | 7.41 | 9.4% | $0.06 | $0.14 | 10.32% |
| BlackBerry Ltd | 119.50 | 3.89 | 5.31 | 1.83% | $0.02 | $0.1 | 2.69% |
| Average | 133.91 | 13.88 | 17.35 | 7.06% | $0.78 | $1.51 | 64.8% |
When closely examining Microsoft, the following trends emerge:
The Price to Earnings ratio of 38.39 is 0.29x lower than the industry average, indicating potential undervaluation for the stock.
With a Price to Book ratio of 11.33, significantly falling below the industry average by 0.82x, it suggests undervaluation and the possibility of untapped growth prospects.
The Price to Sales ratio is 13.87, which is 0.8x the industry average. This suggests a possible undervaluation based on sales performance.
The company has a higher Return on Equity (ROE) of 8.19%, which is 1.13% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $44.43 Billion is 56.96x above the industry average, highlighting stronger profitability and robust cash flow generation.
The gross profit of $52.43 Billion is 34.72x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
The company's revenue growth of 18.1% is significantly below the industry average of 64.8%. This suggests a potential struggle in generating increased sales volume.
The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
By evaluating Microsoft against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:
Compared to its top 4 peers, Microsoft has a stronger financial position indicated by its lower debt-to-equity ratio of 0.18.
This suggests that the company relies less on debt financing and has a more favorable balance between debt and equity, which can be seen as a positive attribute by investors.
For Microsoft in the Software industry, the PE, PB, and PS ratios are all low compared to peers, indicating potential undervaluation. On the other hand, Microsoft's high ROE, EBITDA, and gross profit suggest strong profitability and operational efficiency. However, the low revenue growth rate may be a concern for long-term performance compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Posted In: MSFT
