馃捇 MICROSOFT: ANALYSIS 馃捇
Copyright: Joel Padilla 2024
MSFT: https://www.microsoft.com/en-us/investor
Last report: 30 June 2024
Based on a sample of the last year [July/24 TTM], its average margins have been:
- Gross margin: ≈ 69.7%
- Operating margin: ≈ 44.2%
- EBITDA margin: ≈ 52.8%
- Net margin: ≈ 36.2%
Pros:
- 14 out of 15 segments have grown
- Annual growth of 14% and slightly improvement in margins
- Increase in CAPEX and reduction in Net Debt
Cons:
- Stagnation in its AZURE segment
- EPS and ROIC stagnation
- Doubts about the future profitability of AI development
Based on the last report, their normalized annual EPS was ≈ $11.85 USD and its last average ROIC [TTM] was ≈ 25.96%. If an annual average Forward PER 33 is set as a benchmark with an EPS intensity of ± 0.1855x, the potential forward spread target for the next 12 months could be:
- Optimistic: ≈ $463.80 USD
- Neutral: ≈ $391.24 USD
- Negative: ≈ $318.67 USD
At least, an EPS of $2.99 USD is required for the next quarter, to keep the metrics.
In other hand, if an annual average Forward EV/EBITDA 22 is set, an EBITDA increases of ± 29%, a Net Debt increases of 14.3%, a Dividends increase of 0% and Shares Outstanding increases of ± 0.19%, the potencial spread price target for the next 12 months could be:
- Optimistic: ≈ $487.1 USD
- Neutral: ≈ $376.6 USD
- Negative: ≈ $259.4 USD
Finally, according to its current P/S ratio, a possible spread might be at:
- P/S 15: ≈ $494.6 USD
- P/S 10: ≈ $329.7 USD
The best analysis is yours!
M.F. J. Joel Padilla
https://whatsapp.com/channel/0029Va9EHFk8fewujZelbM3t
https://jjplindex.blogspot.com/
Last report: 30 June 2024
Based on a sample of the last year [July/24 TTM], its average margins have been:
- Gross margin: ≈ 69.7%
- Operating margin: ≈ 44.2%
- EBITDA margin: ≈ 52.8%
- Net margin: ≈ 36.2%
Pros:
- 14 out of 15 segments have grown
- Annual growth of 14% and slightly improvement in margins
- Increase in CAPEX and reduction in Net Debt
Cons:
- Stagnation in its AZURE segment
- EPS and ROIC stagnation
- Doubts about the future profitability of AI development
Based on the last report, their normalized annual EPS was ≈ $11.85 USD and its last average ROIC [TTM] was ≈ 25.96%. If an annual average Forward PER 33 is set as a benchmark with an EPS intensity of ± 0.1855x, the potential forward spread target for the next 12 months could be:
- Optimistic: ≈ $463.80 USD
- Neutral: ≈ $391.24 USD
- Negative: ≈ $318.67 USD
At least, an EPS of $2.99 USD is required for the next quarter, to keep the metrics.
In other hand, if an annual average Forward EV/EBITDA 22 is set, an EBITDA increases of ± 29%, a Net Debt increases of 14.3%, a Dividends increase of 0% and Shares Outstanding increases of ± 0.19%, the potencial spread price target for the next 12 months could be:
- Optimistic: ≈ $487.1 USD
- Neutral: ≈ $376.6 USD
- Negative: ≈ $259.4 USD
Finally, according to its current P/S ratio, a possible spread might be at:
- P/S 15: ≈ $494.6 USD
- P/S 10: ≈ $329.7 USD
The best analysis is yours!
M.F. J. Joel Padilla
https://whatsapp.com/channel/0029Va9EHFk8fewujZelbM3t
https://jjplindex.blogspot.com/
Copyright: Joel Padilla 2024
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