Microsoft - MSFT
Summary (from latest annual report – 2015)
- Total Assets: $176.223 Billion
- Market Cap: Large Cap - $411.3 Billion (last price of $50.16)
- Microsoft - Microsoft, founded by Bill Gates and Paul Allen, develops, manufactures, licenses, and supports a wide range of software products for many computing devices. Products include operating systems, server applications, business solutions applications and software development tools to organizations, application developers, ISPs and OEMs. The company has five operating segments: Client, Server and Tools, Online Services Business, Microsoft Business Division, and Entertainment and Devices Division.
- 5 Year Estimated Growth: +10.80%
- Equity of total company (USD in Millions):
- 2015 = 80,083
- 2014 = 89,784
- 2013 = 78,944
- Total Equity – Cash on Account 2015 (USD in Millions) = 80,083 – 5,595 = 74,488
- Short & Long Term Debts (USD Million):
- 2015 Long Term Debt: 27,808
- 2015 Short Term Debt: 4,985
- Balance Sheet (USD Million):
- 2015: Equity decreased to 80,083 from 89,784.
- 2014: Equity increased to 58,256 from 51,203.
- Total Liabilities 2015: 96,140
- Revenue (USD Million):
- 2015: 93,580
- 2014: 86,833
- Net Income (USD Million):
- 2015: 12,193
- 2014: 22,074
Microsoft Corporation Subsidiaries
- WebTV Networks - $425 Million
- Hotmail - $500 Million (Worth $2 Billion)
- LinkExchange - $265 Million
- Intrinsa - $ 125.42 Million
- Visio - $1.375 Billion
- Travelscape - $89.75 Million
- Titus Communications - $944.8 Million
- Vacationspot - $70.85 Million
- Great Plains Software - $939.884 Million
- Classic Custom Vacations - $78 Million
- Navision - $1.330 Billion
- Rare - $375 Million (worth $500 Million)
- Vicinity - $95.849 Million
- Placeware - $200 Million
- Savvis Inc-Data Centers - $200 Million ( Worth $400 million)
- aQuantive - $6.333 Billion
- Danger - $500 Million
- Fast Search & Transfer - $1.191 Billion
- Greenfield Online - $486 Million
- Skype Technologies - $8.5 Billion (worth $15 billion)
- Yammer - $1.2 Billion
- Nokia mobile phone unit - $7.2 Billion
- Parature - $100 Million
- Mojang - $2.5 Billion
- Sunrise Atelier, Inc. - $100 Million
- N-trig - $200 Million
- Adallom - $320 Million
- Swiftkey - $250 Million
Total = $35,894,550,000.00 Billion
Notable subsidiaries in bold Total= $20 Billion dollars USD
Skype Communications:
Communication is a 2-3 player market. Most users will install 2 different apps to communicate ontop of SMS (Text messages). Microsoft owns the 2nd player in the US and maybe #1 communication app internationally. Weixin(Tencent) in china. Line in Japan. Whatsapp #1 in US and internationally (Brazil , India ). Whatsapp was acquired for $18 billion by facebook in 2014. Large ecosystems are built ontop of communication software. Think wepay on wechat, apple pay on iphone.
Ownership of a dominant communication app is an ecosystem platform.
N-Trig: Similar to wacom tablet technology (5% ownership by Samsung) utilized in Galaxy Note/ Samsung. Competitor to Force Touch Apple. N-Trig is of low value alone, but strong value in supporting technology in hardware.
Opinion about the Stock
Although Fundamental’s were negative: Valuation, Momentum, and Risk Grades are all positive. With the dividend yield for downside protection and the strong balance sheet of Microsoft , MS has a very strong subsidiary Skype , competitor to whatsapp.