| 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 today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Microsoft (NASDAQ:MSFT) against its key competitors in the Software industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within 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 | 35.80 | 10.30 | 12.79 | 7.85% | $48.06 | $53.63 | 18.43% |
| Oracle Corp | 50.36 | 25.68 | 10.62 | 13.12% | $6.12 | $10.04 | 12.17% |
| ServiceNow Inc | 102.74 | 15.60 | 14.05 | 4.52% | $0.89 | $2.63 | 21.81% |
| Palo Alto Networks Inc | 127.98 | 17.90 | 15.75 | 3.37% | $0.68 | $1.86 | 15.84% |
| Fortinet Inc | 33.35 | 81.97 | 9.54 | 33.9% | $0.64 | $1.39 | 14.38% |
| Nebius Group NV | 103.58 | 4.64 | 61.43 | -2.79% | $0.01 | $0.1 | 355.14% |
| Gen Digital Inc | 29.37 | 6.71 | 3.73 | 5.56% | $0.5 | $0.95 | 25.26% |
| Monday.Com Ltd | 130.58 | 6.53 | 7.31 | 1.06% | $0.0 | $0.28 | 26.24% |
| UiPath Inc | 469.67 | 4.49 | 5.15 | 0.09% | $-0.02 | $0.3 | 14.38% |
| Dolby Laboratories Inc | 24.28 | 2.42 | 4.76 | 1.78% | $0.07 | $0.27 | 9.25% |
| CommVault Systems Inc | 71.94 | 26.53 | 5.23 | 5.12% | $0.02 | $0.22 | 18.39% |
| Qualys Inc | 27.75 | 9.70 | 8.04 | 9.7% | $0.06 | $0.14 | 10.41% |
| Teradata Corp | 22.30 | 11.48 | 1.58 | 20.25% | $0.09 | $0.25 | -5.45% |
| Average | 99.49 | 17.8 | 12.27 | 7.97% | $0.76 | $1.54 | 43.15% |
By closely examining Microsoft, we can identify the following trends:
At 35.8, the stock's Price to Earnings ratio is 0.36x less than the industry average, suggesting favorable growth potential.
Considering a Price to Book ratio of 10.3, which is well below the industry average by 0.58x, the stock may be undervalued based on its book value compared to its peers.
The Price to Sales ratio of 12.79, which is 1.04x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
With a Return on Equity (ROE) of 7.85% that is 0.12% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $48.06 Billion, which is 63.24x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
With higher gross profit of $53.63 Billion, which indicates 34.82x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
The company's revenue growth of 18.43% is significantly lower compared to the industry average of 43.15%. This indicates a potential fall in the company's sales performance.
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.
When examining Microsoft in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
Microsoft is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.17.
This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.
For Microsoft in the Software industry, the PE and PB ratios suggest the stock is undervalued compared to peers, indicating potential for growth. However, the high PS ratio implies the stock may be overvalued based on revenue. In terms of ROE, EBITDA, and gross profit, Microsoft shows strong performance, indicating efficient operations and profitability. The low revenue growth suggests a slower expansion rate compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Posted In: MSFT
