Microsoft Corporation (MSFT) on Decifer

Decifer ranks MSFT number 32 of 276 tracked names on durable business quality.

Why it ranks here

• It earns strong returns on the money it puts to work, around 21%.
• Revenue is expected to grow about 19% a year, profits grew 31% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.
• It is one of 3 credible suppliers of enterprise AI run against a firm's own data with revenue expected to grow about 19%, but momentum of 10 out of 35 says the market is not paying attention right now.

The current read

The evidence on MSFT lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 7.5% this week. The drop is large enough to signal near-term caution, worth watching but not the weight of the evidence.

Themes

• Software, Cloud & AI Platforms: Microsoft Corporation sits in the cloud platforms layer of the Software, Cloud & AI Platforms story.

Read the full MSFT research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.