Strategy Inc
Strategy Inc Fundamental Analysis
Strategy Inc (MSTR) shows weak financial fundamentals with a PE ratio of -12.55, profit margin of -8.45%, and ROE of -8.35%. The company generates $0.5B in annual revenue with weak year-over-year growth of -6.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -620.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MSTR's fundamental strength across five key dimensions:
Efficiency Score
WeakMSTR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMSTR trades at attractive valuation levels.
Growth Score
WeakMSTR faces weak or negative growth trends.
Financial Health Score
ExcellentMSTR maintains a strong and stable balance sheet.
Profitability Score
WeakMSTR struggles to sustain strong margins.
Key Financial Metrics
Is MSTR Expensive or Cheap?
P/E Ratio
MSTR trades at -12.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MSTR's PEG of -0.03 indicates potential undervaluation.
Price to Book
The market values Strategy Inc at 0.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -7.69 times EBITDA. This is generally considered low.
How Well Does MSTR Make Money?
Net Profit Margin
For every $100 in sales, Strategy Inc keeps $-8.45 as profit after all expenses.
Operating Margin
Core operations generate -11.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-8.35 in profit for every $100 of shareholder equity.
ROA
Strategy Inc generates $-6.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Strategy Inc generates limited operating cash flow of $-63.50M, signaling weaker underlying cash strength.
Free Cash Flow
Strategy Inc generates weak or negative free cash flow of $-73.49M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.26 in free cash annually.
FCF Yield
MSTR converts -0.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-12.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
100.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.08
vs 25 benchmark
ROA
Return on assets percentage
-0.07
vs 25 benchmark
ROCE
Return on capital employed
-0.09
vs 25 benchmark
How MSTR Stacks Against Its Sector Peers
| Metric | MSTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -12.55 | 35.31 | Better (Cheaper) |
| ROE | -8.35% | 1063.00% | Weak |
| Net Margin | -844.76% | 5920926810.00% | Weak |
| Debt/Equity | 0.16 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 5.62 | 4.97 | Strong Liquidity |
| ROA | -6.54% | -296056.00% (disorted) | Weak |
MSTR outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Strategy Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-49.24%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-1908.80%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-146.41%
Industry Style: Growth, Innovation, High Beta
Declining