MSFT
MICROSOFT CORP·Technology·Services-Prepackaged Software· 228,000
Composite Profile Radar
7 category composites vs sector median benchmark (50)
Final Composite Scores
Special Metrics
Composite Score Drilldown
Final composites blend multiple category scores with research-backed weights. Click any composite to see which categories drive the score.
Overall Health
final composite · weighted average renormalized
Fundamental Beta
Fundamental beta derived from 8 accounting-based risk factors (Beaver-Kettler-Scholes framework). β > 1 = riskier than market average. Positive contributions increase systematic risk exposure.
Composite Snapshot: MSFT
Retrospective: 3-Year Competitive Position
Moat Trajectory: ▲ STRONG — Widening
Durability score of 70/100 combined with growth consistency of 75/100 suggests the company is actively widening its competitive moat. This is rare and indicates structural advantages.
Capital Deployment:
The company excels at capital allocation, with a returns composite of 78/100 and profitability composite of 87/100. This suggests management is deploying capital into high-return projects while maintaining pricing discipline.
ROIC of 26.3% meaningfully exceeds the sector benchmark of 10%, suggesting genuine competitive advantages.
Current Snapshot: Fundamental Reality
Earnings Quality Deep Dive:
Earnings quality is excellent. OCF/NI of 134% indicates cash generation exceeds reported earnings by 34pp — the gold standard for earnings reliability. Accruals ratio of 0.8% is well-contained.
Piotroski F-Score of 5/9: Mixed — some fundamental concerns present.
Balance Sheet Reality:
The balance sheet is healthy. Leverage (composite: 70/100) and liquidity (55/100) are manageable, though there's room for improvement.
D/E of 0.10x is conservative, with strong interest coverage (52.0x).
Forward Outlook: Investment Thesis & Action
Investment Profile: QUALITY YIELD
Solid quality (health: 66/100) combined with meaningful shareholder yield (8.5%). Suitable for income-oriented portfolios seeking quality over pure yield.
Leading Indicators to Monitor:
- ▲ Margin trend is positive (+0.4pp) — watch for continuation
- ▼ Current ROIC (26.3%) trails 5-year average (29.2%) — declining efficiency
- 5-year revenue CAGR of 14.8% provides growth runway
Material Changes (Q-over-Q Analysis)
Comparing current quarter composite scores vs prior quarter, with year-over-year financial metrics.
New / Expanded Risks
No new risks detected this quarter
Improvements
No material improvements this quarter
YoY Changes
Activity by Insider
No buy/sell activity (180d)