Last weeks rating: Data as of 05/26/2017. Percentile Ranking: 12

Transcription

1 Microsoft orp SHW QUITY RTING Outperform Percentile Ranking: ata as of 06/02/ 1-5 Strongly Outperform UY 6-30 Outperform Marketperform Underperform UY HOL SLL Strongly Underperform SLL RTIONL HIN OUR RTING ON MST or details about inputs to Schwab quity Rating, see "Schwab quity Ratings oundations" in the "Stocks" article library under Market Insight. MST NSQ Last weeks rating: ata as of 05/26/ Outperform Percentile Ranking: 12 or details about using Schwab quity Ratings, please see the Schwab enter for inancial Research report "Managing a Portfolio Using Schwab quity Ratings" in the Stocks article library under Market Insight. See page 4 for further documentation on Schwab quity Ratings, Important isclosures, and Regulation nalyst ertification. IMPROV VS. PRVIOUS WK LIN VS. PRVIOUS WK UNMNTL GR THIS WK LST WK IMPORTN ash low Strength Neutral Neutral Medium apital Intensity Negative Negative Medium fficient Management of Working apital Neutral Neutral Low usiness Geographic iversification Positive Positive Low VLUTION GR Price riven Valuation Neutral Neutral High Valuation Sentiment Positive Positive Medium MOMNTUM GR Recent Price Performance vs. the Market Neutral Neutral Medium Recent rokerage nalyst Sentiment hange Neutral Positive Low arnings Trend Surprise Neutral Neutral Low PRI & VOLUM HISTORY MST aily lose Prices $0.39 ug Sep Nov ec Jan eb Mar May Price Performance vs. the S&P 500 $0. QURTRLY POSITIV/NGTIV RNINGS SURPRIS NNOUNMNT $0.66 ata source: Reuters Y MOVING VRG $0.61 Next earnings announcement is expected in the week of 7/20 $ Vol. Mil 40% 30% 20% S&P % 0% Schwab quity Ratings generated on 06/08/, 01:42 PM Outperform ata as of 06/02/ USINSS SUMMRY Microsoft orporation is a technology company. The ompany develops, licenses, and supports a range of software products, services and devices. The ompany's segments include Productivity and usiness Processes, Intelligent loud and More Personal o... or more details, see page 2. OVRVIW Price as of 6/7/ $72.39 Market apitalization illion sset lass Large ap eta 0.99 STOR/INUSTRY Source: S&P apital IQ Sector Industry Sub-Industry Schwab Sector Viewpoint MTRIS Information Technology Software Systems Software Outperform VLU MTRIS MST S&P 500 P/ last 4Q P/ forecast PS P/ree ash low last 4Q P/Sales last 4Q Price/ook ividend Yield(%) GROWTH MTRIS (%) 1 year sales growth year sales growth year PS growth year PS growth year forecast PS growth Long term growth rate 3-5 years year dividend growth year dividend growth.0.3 MOMNTUM MTRIS (%) 4 week stock price change week stock price change INNIL MTRIS (%) Gross margin Net margin Return on assets Return on equity Return on invested capital Long-term debt/capital harles Schwab & o., Inc. (06-775M) Page 1 of 7

2 Microsoft orp RNINGS PR SHR iscal Year ending in June $0.75 $0.50 $ Q Q1 0. Quarterly $ nnual $ Q2 Q Q vs. prior year (%) arnings Surprise(%) # of analysts Next earnings announcement is expected in the week of 7/20 RVNU iscal Year ending in June $30.0 $20.0 $10.0 $ Q4 Q $4.00 $3.00 $2.00 $1.00 MST NSQ arnings data source: Reuters Quarterly $ nnual $ Q2 Q Q vs. 1 year ago (%) NNUL RNINGS ORST Revenue data source: Reuters $ $75 $50 $25 $ ONSNSUS MN HNG IN ORST NUMR O ORST LST 30 YS RNG ORSTS 06/30/ $3.03 $3.00-$ /30/2018 $3.32 $-0.01 $3.05-$ Next 5 Yr. Growth Rate 9.3% -0.1% 5.0%-12.3% 6 IVINS ividends data source: Reuters Quarterly $ nnual $ $ $ $ $ $0.20 $0.10 $0.50 Q3 20 Q4 20 Q1 Q2 Q ividends are paid on a Quarterly basis. SHW STOR STOK LIST Price as of: 6/8/ SHW QUITY TIKR OMPNY PRI RTING GIS INUSTRY H enchmark lectronics Inc $33.30 lectronic quipment, Instruments & omponents ON ON Semiconductor orp.25 Semiconductors & Semiconductor quipment PL Photronics Inc Semiconductors & Semiconductor quipment W Western igital orp Technology Hardware, Storage & Peripherals ZR Zebra Technologies orp lectronic quipment, Instruments & omponents Schwab quity Ratings generated on 06/08/, 01:42 PM Outperform ata as of 06/02/ OTHR OPINIONS R RTING SIN 07/22/2013 Recommendation Morningstar Rating RTING SIN 06/02/ redit Suisse Rating RTING SIN 04/27/ UNRPRORM NUTRL OUTPRORM rgus 12 Month Rating RTING SIN 01/04/2013 SLL HOL UY Ned avis Rating RTING SIN 06/29/20 SLL NUTRL UY Market dge Second Opinion VOI NUTRL LONG RTING SIN 05/08/ Reuter's verage Rating RTING SIN 04/28/ NO OPINION SLL UNR- PRORM USINSS SRIPTION HOL OUT- PRORM UY Microsoft orporation is a technology company. The ompany develops, licenses, and supports a range of software products, services and devices. The ompany's segments include Productivity and usiness Processes, Intelligent loud and More Personal omputing. The ompany's products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games, and training and certification of computer system integrators and developers. It also designs, manufactures, and sells devices, including personal computers (Ps), tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories, that integrate with its cloud-based offerings. It offers an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and it provides solution support and consulting services. harles Schwab & o., Inc. (06-775M) Page 2 of 7

3 Schwab quity Ratings generated on 06/08/, 01:42 PM Microsoft orp NWS HLINS $ Mar May Jun 1 05/26/ Microsoft has announced the appointment of Sayed Hashish as the regional general manager for Microsoft Gulf. In his new role, Hashish will be overseeing the company's operations across the ahrain, Kuwait, Oman, Qatar and the U, driving strategic planning and shaping growth initiatives to enable digital transformation across sectors in the region through developing youth capabilities, encouraging local innovation, furthering the igital agenda and fostering a knowledge-based economy. Hashish takes over from Samer bu Ltaif who held the position for 6 years, and was recently appointed as president for Microsoft Middle ast and frica. 2 05/03/ Microsoft orporation announced the appointment of ndrea ella Mattea as its new vice president of its sia Pacific operations. ndrea ella Mattea joins Microsoft from Insight nterprises. s the new vice president of the sia Pacific region, ella Mattea will lead Microsoft's business across the region, including over 2,000 employees and more than 11,000 Microsoft certified partners. She will report to Microsoft sia president Ralph Haupter and be responsible for all of Microsoft's product, service and support offerings across the region, which includes angladesh, runei, Indonesia, Malaysia, Myanmar, New Zealand, Philippines, Singapore, South Korea, Sri Lanka, Thailand and Vietnam. key area of focus for ella Mattea will be helping Microsoft's customers in sia Pacific to accelerate their own journey of digital transformation. ella Mattea will be relocating, with her husband and two teenage sons, to Singapore and will commence her new role on y 1,. 3 05/01/08:58 am T... R RITRTS HOL OPINION ON SHRS O MIROSOT ORP. (MST 68.46***): We raise our 12-month target price by $1 to $68. Peers have a median forward P/ of 22.0X and a P/-to-growth of 2.0. pplying premiums given MST's brands and businesses, and averaging the outputs results in our target. We raise our PS estimates by $0.06 each for Y (Jun.) to $3.03 and Y 18 to $3.34, and set Y 19's at $3.76. MST posts non-gp Mar-Q PS of $0.73 vs. $0.62, $0.03 above the S&P apital IQ consensus. djusted revenues rose 8%, but were below our expectations, with Intelligent loud up 11% and More Personal omputing down 7%. We see MST as fairly valued. /S. Kessler 4 03/01/ Microsoft has appointed Samer bu Ltaif as its president for the Middle ast and frica (M) region. bu Ltaif, who joined Microsoft in 2004, has held many senior roles within the organization including regional director for enterprise and partner group across M. Most recently, he was the Regional General Manager of Microsoft Gulf. key part of bu Ltaif's role will be to drive the digital transformation agenda of the region across governments, enterprises, developers and small and medium businesses. bu Ltaif will continue to be based in ubai. He takes over the reins from Microsoft corporate vice president, li aramawy, who has headed the region for thirteen years. aramawy, in turn, takes on a newly announced global role as the head of the merging Markets igital Transformation Organisation which has been established within Microsoft. harles Schwab & o., Inc. (06-775M) Page 3 of 7

4 Schwab quity Ratings generated on 06/08/, 01:42 PM Microsoft orp IMPORTNT ISLOSURS OR MST I2 Schwab or its affiliates has received compensation for investment banking services from this company in the past 12 months. R1 Schwab received compensation for products or services other than investment banking services from this company in the past 12 months. R2 This company is, or during the past 12 months prior to distribution was, a client of Schwab. The type of services provided were non-investment banking 2.% in Hold ategory (Schwab quity Ratings and Schwab quity Ratings International of ) Price History for MST $ Jan Jan Jan Schwab quity Rating History for MST SHW QUITY RTINGS MNING N ISTRIUTION Schwab quity Ratings are assigned to approximately 3000 U.S.-traded stocks. The Schwab quity Ratings model universe is generally composed of the combined set of stocks in the Russell Investments ( Russell ) 3000 Index and the Standard & Poor s ( S&P ) 500 Index. dditional universe coverage may be incorporated from time to time. The explanation and table below are included to assist you in using Schwab quity Ratings as one component of your own research to evaluate stocks and investment opportunities. Schwab rates stocks using a scale of ////. Schwab s outlook is that "" rated stocks, on average, will strongly outperform and "" rated stocks, on average, will strongly underperform the equities market over the next 12 months. Schwab quity Ratings are based upon a disciplined, systematic approach that evaluates each stock on the basis of a wide variety of investment criteria from three broad categories: undamentals, Valuation, and Momentum. This approach attempts to gauge investor expectations since stock prices tend to move in the same direction as changes in investor expectations. Stocks with low and potentially improving investor expectations tend to receive the best Schwab quity Ratings ("" or "" ratings), while stocks with high and potentially falling investor expectations tend to receive the worst Schwab quity Ratings ("" or "" ratings). rom time to time, Schwab may update the Schwab quity Ratings methodology. Schwab quity Ratings istribution Schwab Percentile istribution 12 Month General quity Rating Ranking istribution of Rating Within Sector Return Outlook uy/hold/sell Guidance* 1-5 Top 5% Strongly Outperform uy 6-30 Next 25% Outperform uy Next 40% Marketperform Hold Next 25% Underperform Sell ottom 5% Strongly Underperform Sell *The general buy/hold/sell guidance is relative to other rated equities only. efore considering whether to take any action, an investor should consider whether equities generally are performing well in comparison to other asset classes and whether other equities in the same sector or category with the same or better rating may be more appropriate. Investment Rating xplanation (Strongly Outperform): If an investor is looking to add a stock to his or her portfolio, "" rated stocks may be the best candidates for consideration. (Outperform): n investor looking to add a stock to his or her portfolio might also consider a "" rated stock, though preference should be given to "" rated stocks. (Marketperform): n investor would not usually consider a "" rated stock for purchase. n investor holding a "" rated stock in his or her portfolio should consider continuing to hold the stock, and might monitor the stock s ongoing performance and compare the potential benefits of owning a stock with higher ratings. (Underperform): n investor holding a "" rated stock should consider whether it is appropriate to continue to hold that stock in his or her portfolio. n investor would not usually consider a "" rated stock for purchase. (Strongly Underperform): n investor holding an "" rated stock should consider whether it is appropriate to eliminate that stock from his or her portfolio. n investor would not usually consider an "" rated stock for purchase. Percentile Rankings xplanation: ach of the approximately 3,000 stocks rated in the Schwab quity Ratings U.S. universe is given a score that is derived from the research factors used in the Schwab quity Ratings model. Once the stock s composite score, which includes all research factor scores, is calculated, the universe of rated stocks is divided into two groups: large-capitalization ( large-cap ) stocks generally the combined set of stocks in the Russell 1000 Index and the S&P 500 Index and small-cap stocks generally those stocks in the Russell 2000 Index. The large- and small-cap groups are further divided into eleven economic sectors within each capitalization group. The assignment of a final Schwab quity Rating depends on how well a given stock s composite score ranks against the composite scores of other stocks in the same capitalization group and sector. The result is a stock's within-capitalization-group and within-sector, or cap-neutral and sector-neutral, percentile ranking. The lowest percentile rankings represent the best scores and correspond to the best letter grades. or example, in a sector of 400 rated stocks, the top 4 stocks would receive a percentile ranking of 1 and the bottom 4 stocks would receive a percentile ranking of 100. Stocks ranked in percentile groups 1-5 are rated "" and those in percentile groups 6-30 are harles Schwab & o., Inc. (06-775M) Page 4 of 7

5 Schwab quity Ratings generated on 06/08/, 01:42 PM Microsoft orp IMPORTNT ISLOSURS OR MST rated "." Model Risks Schwab quity Ratings uses quantitative analyses in its modeling method. ny limitations or inaccuracies in its analyses or models could affect model performance and the results investors may achieve. Models that appear to explain prior market data can fail to predict future market events. While the data used in the models has been taken from sources Schwab believes to be reliable; its accuracy, completeness or interpretation cannot be guaranteed. Schwab quity Ratings may not capture subjective, qualitative influences on return and risk such as changes in management, business and political trends, or legal and regulatory developments. Thus, it is important to conduct additional research prior to making a trading decision. escriptions for Non-Rated Stocks ategory efinition escription NR Not Rated Schwab has decided not to publish a rating on this stock due to unusual or extraordinary business circumstances related to this company. lthough Schwab generally does not monitor,, and rated stocks for unusual or extraordinary business circumstances, from time to time, a rating of NR may appear on a particular stock. N Not vailable Schwab quity Rating is not available on this stock due to insufficient information about this stock. N Not overed This stock is not currently in the Schwab quity Ratings universe or is prohibited from coverage for regulatory or other reasons. IMPORTNT ISLOSURS OR H I2 Schwab or its affiliates has received compensation for investment banking services from this company in the past 12 months. R1 Schwab received compensation for products or services other than investment banking services from this company in the past 12 months. R2 This company is, or during the past 12 months prior to distribution was, a client of Schwab. The type of services provided were non-investment banking 2.% in Hold ategory (Schwab quity Ratings and Schwab quity Ratings International of ) Price History for H $ IMPORTNT ISLOSURS OR ON Jan Jan Jan I2 Schwab or its affiliates has received compensation for investment banking services from this company in the past 12 months. R1 Schwab received compensation for products or services other than investment banking services from this company in the past 12 months. Schwab quity Rating History for H R2 This company is, or during the past 12 months prior to distribution was, a client of Schwab. The type of services provided were non-investment banking 2.% in Hold ategory (Schwab quity Ratings and Schwab quity Ratings International of ) harles Schwab & o., Inc. (06-775M) Page 5 of 7

6 Microsoft orp Price History for ON $ Jan Jan Jan Schwab quity Ratings generated on 06/08/, 01:42 PM Schwab quity Rating History for ON IMPORTNT ISLOSURS OR PL I2 Schwab or its affiliates has received compensation for investment banking services from this company in the past 12 months. R1 Schwab received compensation for products or services other than investment banking services from this company in the past 12 months. R2 This company is, or during the past 12 months prior to distribution was, a client of Schwab. The type of services provided were non-investment banking 2.% in Hold ategory (Schwab quity Ratings and Schwab quity Ratings International of ) Price History for PL $ IMPORTNT ISLOSURS OR W Jan Jan Jan I2 Schwab or its affiliates has received compensation for investment banking services from this company in the past 12 months. R1 Schwab received compensation for products or services other than investment banking services from this company in the past 12 months. Schwab quity Rating History for PL R2 This company is, or during the past 12 months prior to distribution was, a client of Schwab. The type of services provided were non-investment banking 2.% in Hold ategory (Schwab quity Ratings and Schwab quity Ratings International of ) harles Schwab & o., Inc. (06-775M) Page 6 of 7

7 Microsoft orp Price History for W $ Jan Jan Jan Schwab quity Ratings generated on 06/08/, 01:42 PM Schwab quity Rating History for W IMPORTNT ISLOSURS OR ZR I2 Schwab or its affiliates has received compensation for investment banking services from this company in the past 12 months. R1 Schwab received compensation for products or services other than investment banking services from this company in the past 12 months. R2 This company is, or during the past 12 months prior to distribution was, a client of Schwab. The type of services provided were non-investment banking 2.% in Hold ategory (Schwab quity Ratings and Schwab quity Ratings International of ) Price History for ZR $ Jan Jan Jan Schwab quity Rating History for ZR ISLIMR INORMTION VRYING VIWPOINTS - The information contained in these materials reflects the harles Schwab & o., Inc. Schwab quity Rating on a particular stock. Schwab, its affiliates and/or their employees may publish or otherwise express other viewpoints or trading strategies that may conflict with the Schwab quity Rating included in this report. Please be aware that Schwab and/or its affiliates and the investment funds and managed accounts they manage may take positions, which may be contrary to the included Schwab quity Rating. GNRL INORMTION - This material is for informational purposes only and is not an offer to sell or the solicitation of an offer to buy. dditionally, Schwab quity Ratings, Percentile Rankings, and the general guidance are not personal recommendations for any particular investor or client and do not take into account the financial, investment or other objectives or needs of, and may not be suitable for any particular investor or client. Investors and clients should consider Schwab quity Ratings as only a single factor in making their investment decision while taking into account the current market environment. Schwab quity Ratings utilize third-party data in computing a rating. While Schwab believes such third-party information is reliable, we do not guarantee its accuracy, timeliness or completeness. The Schwab enter for inancial Research may provide research consulting services, such as those related to Schwab quity Ratings model design and performance, to Schwab investment advisory affiliates for their asset management purposes. Such services are not available to all other clients. Schwab quity Ratings are generally updated weekly, so you should review and consider any recent market or company news before taking any action. Past history is no indication of future performance and you may lose money on your investment. or questions, please call GIS - The industry classification information contained in these materials reflects The Global Industry lassification Standard (GIS) which was developed by and is the exclusive property of Morgan Stanley apital International Inc. and Standard and Poor's. GIS is a service mark of MSI and S&P and has been licensed for use by Schwab. THIR-PRTY T PROVIRS - This report was compiled from data provided by R, Reuters, and Vickers. Not all information is available on all companies. ompanies with stock splits occurring within two weeks of the report date may not have had their historical data adjusted to account the split. full glossary and further information regarding use of this report is available in the User Guide which you may access online. Reproduction or redistribution of this report in any form is prohibited except with written permission from harles Schwab & o., Inc. and its affiliates (collectively "Schwab") and the Information Providers which are independent of each other. Schwab believes that the information provided is reliable. However, Schwab nor the Information Providers 1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or 2) warrant any results from use of the information. The included information is subject to change without notices. Schwab does not guarantee the suitability or potential value of any particular investment of information source nor can be held responsible for any inaccuracies or omissions. ¹Markit on emand used R data in making its calculations. harles Schwab & o., Inc. (06-775M) Page 7 of 7