Monday, January 30, 2006

M i c r o s o f t: (symbol: msft): Will the G r o w t h continue…………..

M i c r o s o f t: (symbol: msft): Will the G r o w t h continue…………..

Microsoft, the largest software company in the world, has enjoyed quite some publicity since past many years. Though Microsoft gets a lot of bad publicity for its faulty software, one can not ignore that it has been successful at bringing the PC on every desktop. Though some might not agree!…..however, fact is that today more than 90 percent of the world computers are using Microsoft windows operating system, windows server, Microsoft office productivity suite, etc. Microsoft is ubiquitous. It is every where be on the PC, handled, in your living rooms, in the games console market and the list goes on. However, with tough competition from Yahoo, Apple noticeably, Microsoft has been developing new strategies and products, which will be seen in the second half 2006 that will help maintain its market dominance. Many analysts yet maintain a buy recommendation for Microsoft. Some key Microsoft Financial information is given below – source: yahoo financials.

Market Cap (intraday): 281.02B

Enterprise Value (25-Jan-06)3: 240.43B

Trailing P/E (ttm, intraday): 22.30

Forward P/E (fye 30-Jun-07) 1: 17.37

PEG Ratio (5 yr expected): 1.62

Price/Sales (ttm): 6.93

Price/Book (mrq): 5.79

Enterprise Value/Revenue (ttm)3: 5.96

Enterprise Value/EBITDA (ttm)3: 13.398

Profitability

Profit Margin (ttm): 31.90%

Operating Margin (ttm): 42.19%

Management Effectiveness

Return on Assets (ttm): 12.85%

Return on Equity (ttm): 20.71%

Income Statement

Revenue (ttm): 40.34B

Revenue Per Share (ttm): 3.737

Qtrly Revenue Growth (yoy): 6.00%

Gross Profit (ttm): 33.59B

EBITDA (ttm): 17.95B

Net Income Avl to Common (ttm): 12.87B

Diluted EPS (ttm): 1.18

Qtrly Earnings Growth (yoy): 24.20%

Balance Sheet

Total Cash (mrq): 40.06B

Total Cash Per Share (mrq): 3.763

Total Debt (mrq): 0

Total Debt/Equity (mrq): 0

Current Ratio (mrq): 2.927

Book Value Per Share (mrq): 4.54


Share Price Info - Friday – 27th Jan

Last Trade: 26.45

Trade Time: 1:59PM ET

Change: 0.05 (0.19%)

Prev Close: 26.40

Open: 26.57

Bid: 26.45 x 13300

Ask: 26.46 x 37100

1y Target Est: 30.88

Day's Range: 26.31 - 26.72

52wk Range: 23.82 - 28.25

Volume: 41,666,625

Avg Vol (3m): 64,965,500

Market Cap: 281.55B

P/E (ttm): 22.34

EPS (ttm): 1.18

Div & Yield: 0.36 (1.40%)

Microsoft….with a good position in terms of assets and liabilities… (noticeably ..zero debt), looks favorable.

What I believe will fuel the future growth for Microsoft is the introduction of it next generation or as Microsoft calls next wave of technological advancement in computing products. Microsoft has been working continuously to meet it deadlines on the new windows vista expected to be out in second half of 2006, along with this there will be an array of new technologies like windows anti virus, windows anti spy ware, new programming language - XAML, new managed programming model called winfx, new msn portal – live.com, a new outlook style web based mail client called windows mail, new windows movie maker, windows player, windows graphic foundation – Avalon, new communication services for windows, and many many more…………………

Wednesday, January 25, 2006

Well here is a start for a person who never quite believed in blogging.

However, my initiative to join this revolution starts with this blog on Microsoft. I will be keeping a tab on all the news that happen as we go along. Do stop by and chek out the stuff....