I decided to take a look myself, so here is my analysis of Microsoft...
Microsoft (NASDAQ: MSFT) is engaged in developing, manufacturing, licensing and supporting a range of software products and services for different types of computing devices.
Officially established on April 4, 1975 by Bill Gates and Paul Allen, Microsoft grew from a two man operation into a world-wide software giant. MSFT operates in 5 business segments.
- Windows and Windows Live Division- windows products and personal computers
- Servers and Tools- SQL server, silverlight
- Online Services- online advertising platform
- Microsoft Business- office suite and desktop programs
- Entertainment and Devices- Xbox, Zune
Dividends, EPS, Free Cash Flow
The companies first dividend was paid in 2003. In 2005 they issued a special, one time $3 per share dividend. In the past 5 years, dividend growth has averaged 10.4%
Revenue and Margins
MSFT has increased it's revenue by an average of 10.5% per year
Current Ratio - 2.13
MSFT has a share price of 26.84, with a trailing p/e of 12.78 and a forward p/e of 10.96. The dividend yield, when calculated using the new 2011 dividend of .16 a share per quarter, is 2.38%. This is below it's 5 year average low p/e and above it's 5 year average high yield.
At this price, I think MSFT is a buy. If not a buy, it is a least a strong watch.
How do you feel about MSFT?
Full Disclosure: I do not own any MSFT. My portfolio holdings can be seen here