STOCKREPORTS |
Microsoft Corporation | Nasdaq Symbol MSFT In S&P 500 |
15-AUG-98 | Industry: Computer (Software & Services) |
Summary: Microsoft, the world's largest software company, develops and markets PC software, including the Windows operating system and Office application suite. |
Recent Price 104.25 52 Wk Range 119.63 - 59.00 |
Yield Nil 12-Mo. P/E 62.4 |
Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) 3- Fair Value 119.00 Risk LOW Earn/Div Rank B+ |
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Technical Evaluation: BULLISH since 02/96 Rel. Strength Rank (1 Lowest - 99 Highest) 88 Insider Activity UnFavorable |
Overview 22-JUL-98
Valuation 22-JUL-98
Key Stock Statistics
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Fiscal Year Ending Jun. 30
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Business Summary 22-JUL-98
MSFT is best known for its operating systems software programs, which run about 90% of the PCs currently in use. Its original DOS operating system gave way to Windows, a graphical user interface program run in conjunction with DOS, which made using a PC easier. Windows 98, MSFT's newest version of its flagship PC operating system, with sales closely tied to PC shipments, was introduced on June 25, 1998. Its predecessor, Windows 95, has an installed base of more than 100 million users. Windows NT, a network operating system providing network management and administration tools, security and operating stability, now has an installed base of more than seven million users, and continues to grow rapidly. MSFT entered the business applications market in the early 1990s through a line-up of strong offerings combined with aggressive and innovative marketing and sales techniques. Its Office 97 suite, which includes the popular Word (word processing), Excel (spreadsheet) and PowerPoint (graphics) software programs, is now by far the number one selling application software package. The company is also devoting resources and forming alliances to offer interactive media, including children's titles, games and information products. Microsoft owns 50% of Dreamworks Interactive, MSNBC Cable, and MSNBC Interactive News. The company also recently acquired WebTV Networks, and made investments in Comcast and Apple Computer. MSFT has rapidly repositioned itself as a major provider of software and services for the Internet. Its Explorer browser is challenging Netscape's Navigator, the market leader. In addition, MSFT's server and development tools for the Internet are being well received. The company continues to spend heavily on research and development. Some $2.2 billion (about 20% of revenues) was spent in FY 97 (Jun.), of which about $400 million was targeted directly at the Internet. An additional $2.9 billion was spent in FY 98. Powerful distribution channels, including strong relationships with original equipment manufacturers (OEMs, the makers of PCs), relationships with resellers, as well as guaranteed shelf space in retail stores, all give MSFT an advantage over smaller, less well established rivals.
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1998 | 1997 | 1996 | 1995 | 1994 | 1993 | 1992 | 1991 | 1990 | 1989 | |
Curr. Ratio | NA | 2.9 | 3.2 | 4.2 | 4.7 | 5.1 | 4.0 | 3.5 | 3.9 | 3.0 |
% LT Debt of Cap. | NA | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
% Net Inc.of Revs. | Nil | 30.3 | 25.3 | 24.5 | 24.7 | 25.4 | 25.7 | 25.1 | 23.6 | 21.2 |
% Ret. on Assets | NA | 28.2 | 25.4 | 23.1 | 25.0 | 29.1 | 32.5 | 33.4 | 30.1 | 27.9 |
% Ret. on Equity | NA | 41.2 | 35.9 | 29.7 | 29.8 | 34.6 | 39.3 | 40.4 | 37.1 | 36.1 |
Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. Bold denotes diluted EPS (FASB 128). E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.
Office--One Microsoft Way, Redmond, WA 98052-6399. Tel--(206) 882-8080. Website--http://www.microsoft.com Chrmn & CEO--W. H. Gates III. Pres--S. Ballmer. EVP & COO--R. J. Herbold. VP-Fin & CFO--G. B. Maffei. Secy--W. H. Neukom. Investor Contact--Carla Lewis (425-936-3703). Dirs--P. G. Allen, J. E. Barad, W. H. Gates III, R. Hackborn, D. F. Marquardt, R. D. O'Brien, W. G. Reed Jr., J. A. Shirley. Transfer Agent--ChaseMellon Shareholder Services, Ridgefield Park, NJ. Incorporated--in Washington in 1981; reincorporated in Delaware in 1986. Empl-- 22,232. S&P Analyst: Brian Goodstadt
This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1998