MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock (STRD)
Valuation Overview•Is MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Fragile underlying quality score of 32/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
STRD struggles with subpar profitability and pressured margins. This is paired with a moderately leveraged but stable balance sheet.
The company maintains stable top-line performance paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-1956.1%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $123.0M | +3.0% | — | — | — | |
| EBITDA | -$17.4B | — | -62.4% | — | — | |
| Net Income | -$12.4B | -229.8% | -37.8% | — | — | |
| EPS (Diluted) | $-42.93 | -151.3% | — | — | — | |
| Free Cash Flow | $0.00 | +100.0% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 68.7% | 72.9% | 76.0% | 76.0% |
| Operating Margin | -1956.1% | -521.3% | -394.6% | -394.6% |
| Net Margin | -806.3% | -323.9% | -274.2% | -274.2% |
| FCF Margin | -9.6% | -2579.2% | -1428.1% | -1428.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.86 | $-38.25 | -4337.4% | ||
| Q1'26 | $-0.08 | $-42.93 | -53562.5% |
Total return is -16.5% (1Y), lagging the benchmark by -41.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -11.1% | -20.4% | — |
| 1Y | -16.5% | -41.5% | +12.1% |
| 3YCAGR | -5.2% | -23.2% | +12.3% |
| 5YCAGR | -3.2% | -14.7% | +12.3% |
| 10YCAGR | -1.6% | -14.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock (STRD) valuation, health, and returns.
MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Limited: Cheap versus peers compared to industry peers. undervalued (implying +774.1% upside to DCF intrinsic value of $543.72)
MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock has multiple valuation anchors: DCF Intrinsic Value: $543.72 | Peer Relative Fair Value: $463.00. A convergence of these signals offers higher conviction.
MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock displays weak financial health with a composite quality score of 32/100, supported by a Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of -9.6%.
MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock's current growth trajectory is Stable. The company achieved +3.0% 1Y revenue growth and -151.3% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock include: -34.7% 1-year max drawdown. Volatility risk is characterized by a beta of 0.78x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.