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Downgrading the Moat Ratings on Six Wide-Moat Companies Based on AI Concerns
The pace of change in the software industry has accelerated in recent monthsleading to heightened uncertainty and prompting us to reassess our moat ratings.
Microsoft Corp MSFT
Bulls SayBears Say
Bulls
Public cloud is widely considered to be the future of enterprise computingand Azure is a leading service that benefits the evolution to first to hybrid environmentsand then ultimately to public cloud environments.
Bears
Momentum is slowing in the ongoing shift to subscriptionsparticularly in Officewhich is generally considered a mature product.
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Trading Information
- Previous Close Price
- $356.77
- Day Range
- $356.28–365.36
- 52-Week Range
- $344.79–555.45
- Bid/Ask
- $358.80 / $358.85
- Shares Outstanding
- 7.43B
- Market Cap
- $2.67T
- Volume/Avg
- 43M / 33M
Key Statistics
- Price/Earnings (Normalized)
- 23.28
- Price/Sales
- 8.72
- Dividend Yield (Trailing)
- 0.95%
- Dividend Yield (Forward)
- 0.99%
- Total Yield
- 1.74%
Company Profile
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Officecloud-based Office 365ExchangeSharePointSkypeLinkedInDynamics)intelligence cloud (infrastructure- and platform-as-a-service offerings AzureWindows Server OSSQL Server)and more personal computing (Windows ClientXboxBing searchdisplay advertisingand Surface laptopstabletsand desktops).
- Sector
- Technology
- Industry
- Software - Infrastructure
- Stock Style Box
- Large Core
- Total Number of Employees
- 228,000
- Website
- https://www.microsoft.com
Competitors
Valuation
|
Metric
|
MSFT
|
ORCL
|
CRM
|
|---|---|---|---|
Price/Earnings (Normalized) | 23.28 | 19.35 | 14.29 |
Price/Book Value | 6.78 | 11.97 | 2.82 |
Price/Sales | 8.72 | 6.33 | 4.13 |
Price/Cash Flow | 16.13 | 15.29 | 10.87 |
Price/Earnings
MSFT
ORCL
CRM
Financial Strength
|
Metric
|
MSFT
|
ORCL
|
CRM
|
|---|---|---|---|
Quick Ratio | 1.12 | 0.77 | 0.64 |
Current Ratio | 1.39 | 0.91 | 0.76 |
Interest Coverage | 55.24 | 5.36 | 28.72 |
Quick Ratio
MSFT
ORCL
CRM
Profitability
|
Metric
|
MSFT
|
ORCL
|
CRM
|
|---|---|---|---|
Return on Assets (Normalized) | 21.43% | 10.91% | 11.81% |
Return on Equity (Normalized) | 37.55% | 83.96% | 19.79% |
Return on Invested Capital (Normalized) | 31.85% | 16.80% | 16.18% |
Return on Assets
MSFT
ORCL
CRM
Software - Infrastructure Industry Comparables
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Oracle Corp
ORCL
| Kyymhjl | Mscjvs | $402B | |||
| Palantir Technologies Inc Ordinary Shares - Class A
PLTR
| Kpljwmwr | Rpmjlcg | $342B | |||
| Palo Alto Networks Inc
PANW
| Mmxvcqnpy | Gnph | $119B | |||
| CrowdStrike Holdings Inc Class A
CRWD
| Wqtbjwfbr | Tslq | $94B | |||
| Synopsys Inc
SNPS
| Jqcxwkzkw | Ttgr | $73B | |||
| Cloudflare Inc
NET
| Vsrkbshjqn | Mtqct | $71B | |||
| Fortinet Inc
FTNT
| Nrqvhbhcp | Qvb | $58B | |||
| CoreWeave Inc Ordinary Shares - Class A
CRWV
| Frljkrzr | Srjrm | $39B | |||
| Block Inc Class A
XYZ
| Txhtzxst | Dqngx | $34B |
United States