MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock Fundamental Analysis (NASDAQ: STRF)
MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock Fundamental Analysis (NASDAQ: STRF)
MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock (NASDAQ: STRF) shows weak financial fundamentals with a PE ratio of -1.24, profit margin of -61.03%, and ROE of -60.79%. The company generates $0.0B in annual revenue with weak year-over-year growth of 2.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -4591.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STRF's fundamental strength across five key dimensions:
Efficiency Score
WeakSTRF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTRF trades at attractive valuation levels.
Growth Score
WeakSTRF faces weak or negative growth trends.
Financial Health Score
ExcellentSTRF maintains a strong and stable balance sheet.
Profitability Score
WeakSTRF struggles to sustain strong margins.
Key Financial Metrics
Is STRF Expensive or Cheap?
P/E Ratio
STRF trades at -1.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, STRF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock at 0.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.57 times EBITDA. This is generally considered low.
How Well Does STRF Make Money?
Net Profit Margin
For every $100 in sales, MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock keeps $-61.03 as profit after all expenses.
Operating Margin
Core operations generate -16.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-60.79 in profit for every $100 of shareholder equity.
ROA
MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock generates $-57.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock generates limited operating cash flow of $-751.40K, signaling weaker underlying cash strength.
Free Cash Flow
MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock generates strong free cash flow of $424.16M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $33.04 in free cash annually.
FCF Yield
STRF converts 28.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.009
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
78.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.61
vs 25 benchmark
ROA
Return on assets percentage
-0.58
vs 25 benchmark
ROCE
Return on capital employed
-0.16
vs 25 benchmark
How STRF Stacks Against Its Sector Peers
| Metric | STRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.24 | 34.40 | Better (Cheaper) |
| ROE | -60.79% | 730.00% | Weak |
| Net Margin | -6102.96% | -3110.00% (disorted) | Weak |
| Debt/Equity | 0.15 | 0.22 | Strong (Low Leverage) |
| Current Ratio | 5.39 | 6.05 | Strong Liquidity |
| ROA | -57.86% | 254.00% | Weak |
STRF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-67.30%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-17549.24%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-141.31%
Industry Style: Growth, Innovation, High Beta
Declining