Microsoft Corporation MSFT
Composite 63/100; the shares have moved about 38% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 24/100 — a strong mark against it.
Quality ranks 82/100 — a strong point in its favour. Balance-sheet strength ranks 76/100 — a strong point in its favour. Growth ranks 73/100 — a moderate point in its favour.
Valuation ranks 24/100 — a strong mark against it. Income ranks 40/100 — a slight mark against it.
What the company does Microsoft operates three segments: Productivity and Business Processes (Microsoft 365, LinkedIn, Dynamics 365), Intelligent Cloud (Azure, server products), and More Personal Computing (Windows, gaming, devices). It generates revenue from cloud services, productivity software, and enterprise solutions.
Key financials Microsoft reports strong profitability with ROE 34%, ROA 14.1%, and ROCE 27.8%. Margins are robust: gross 67.9%, operating 45.1%, net 40.3%. Revenue and EPS growth are 17.7% and 31.7%, respectively. Financial health is solid with debt/equity 0.29 and interest coverage 50.88.
Stock health Momentum is mixed: 3m +18.75%, 6m +19.07%, 12m -8.27%. RSI(14) is 76.10, indicating overbought conditions. Quality pillars are strong (Quality 80.2, Strength 81.2), but Valuation is weak (30.0).
Price vs fair value Microsoft trades at a **discount of 15.40%** versus the analyst mean target of 562.73. - AI rally concerns may be overstated given Azure’s enterprise adoption (AI CapEx fears: Is big tech overspending? Yahoo Finance Video) - LinkedIn and Dynamics 365 growth supports productivity segment resilience (The companies emerging as new leaders in this renewed AI rally, Yahoo Finance Video) - Cloud margins remain robust despite macro uncertainty (AI CapEx fears: Is big tech overspending? Yahoo Finance Video)
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Data as of 2026-09-04, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.