Microsoft Corporation (MSFT) Stock Analysis & Winston Score

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business; Skype, Outlook.com, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and o

Winston Score History

Politician Trades

125 trades / 12mo

66 Congressional buys and 59 sells on MSFT in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+18.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+23.6% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$32.5B/ year

↑ Rising (+10% vs prior year)

11.5% of revenue

Below sector average (15%)

Investing heavily in future products and technology

Insider Activity

0.1%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$30.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Microsoft Corporation is a rare growth stock that's already generating positive cash flow while growing at 18%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count falling — buybacks

−1.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 7.61B (2021) → 7.46B (2025)

Score breakdown

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Quality

Gross Margin

68.6%

Premium pricing power — 68.6% gross margin

Operating Margin

44.9%

Excellent — 44.9% operating margin

ROCE

8.9%

Below par — 8.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+16.7%

Fast-growing sales (16.7% YoY)

EPS YoY

+28.6%

Earnings growing fast (28.6% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

135%

Turns 135% of profit into real cash

FCF Margin

25.3%

Converts sales into free cash efficiently (25.3%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.13

Conservative — low debt load (0.13)

Interest Cover

53.94x

Comfortably covers interest (53.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

22.8x

Growth-priced — P/E 22.8

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+6.7

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (22.8 → 16.1)

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Dividends

Dividend Yield

0.97%

Small dividend — 0.97% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+9.6%

Dividend growing modestly (9.6% YoY)

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