MSTRStrategy Inc
Is the business good?
The checks split: margins widening, but 3 of 9 health tests passed.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MSTR?
Strategy Inc earns −82% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 91 points below what the capital costs: growth destroys value
- Share count, year on year
- +15%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −2.8% |
| FY2021 | −154% |
| FY2022 | −256% |
| FY2023 | −23% |
| FY2024 | −400% |
| FY2025 | −1141% |
Details›
- Free cash flow, trailing twelve months
- −$26M
- Net income, trailing twelve months
- −$30.4B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −82%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.