Microsoft Corporation
Microsoft Corporation Fundamental Analysis
Microsoft Corporation (4338.HK) shows strong financial fundamentals with a PE ratio of 12.73, profit margin of 39.04%, and ROE of 33.61%. The company generates $634.6B in annual revenue with strong year-over-year growth of 14.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 90.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze 4338.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent4338.HK demonstrates superior asset utilization.
Valuation Score
Moderate4338.HK shows balanced valuation metrics.
Growth Score
Excellent4338.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent4338.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent4338.HK achieves industry-leading margins.
Key Financial Metrics
Is 4338.HK Expensive or Cheap?
P/E Ratio
4338.HK trades at 12.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 4338.HK's PEG of 7.25 indicates potential overvaluation.
Price to Book
The market values Microsoft Corporation at 3.88 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.31 times EBITDA. This signals the market has high growth expectations.
How Well Does 4338.HK Make Money?
Net Profit Margin
For every $100 in sales, Microsoft Corporation keeps $39.04 as profit after all expenses.
Operating Margin
Core operations generate 46.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.61 in profit for every $100 of shareholder equity.
ROA
Microsoft Corporation generates $17.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Microsoft Corporation generates strong operating cash flow of $333.46B, reflecting robust business health.
Free Cash Flow
Microsoft Corporation generates strong free cash flow of $160.83B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.42 in free cash annually.
FCF Yield
4338.HK converts 2.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How 4338.HK Stacks Against Its Sector Peers
| Metric | 4338.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.73 | 34.43 | Better (Cheaper) |
| ROE | 33.61% | 1135.00% | Weak |
| Net Margin | 39.04% | -134808.00% (disorted) | Strong |
| Debt/Equity | 0.15 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 1.39 | 5.77 | Neutral |
| ROA | 17.93% | -310795.00% (disorted) | Strong |
4338.HK outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Microsoft Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
101.68%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
135.44%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
129.76%
Industry Style: Growth, Innovation, High Beta
High Growth