Here's a quick analysis of $MSFT

Here's a quick analysis of $Microsoft(MSFT)$

1. Return on capital is high, but below what is was in the past.

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2. FCF per share growth has been high (typically between 10%-15% per annum) and exponential).

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3. Microsoft has impressively seen its COGS, OPEX and SG&A margins all come down over the years, although its CAPEX margin has been creeping up. CAPEX is currently just under 20% of revenue.

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4. Microsoft has been consistently buying back its shares.

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5. Long-term debt is a small part of its balance sheet, and the interest paid on this debt is a small part of its expenses.

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6. Dividend growth (10% per annum) follows FCF growth (also 10%). Dividend growth has been fairly exponential.

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7. FCF yield has consistently fallen since its high in 2012. It has recently nudged up compared to last year. What are your views on Microsoft? Do you own it?

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