One Solid Reason to Own Microsoft Corporation (MSFT) Stock

MSFT EBIT Margin TTM data by YCharts.

Pfizer Inc. (NYSE:PFE) wins the EBITDA battle with Microsoft. In terms of normalized net income, Microsoft ties for first place with megabank JPMorgan Chase & Co. (NYSE:JPM) at 22.3%. And when it comes to the most Foolish margin of them, all, Microsoft stands alone with a 29% free-cash-flow margin — miles ahead of second-place performer Pfizer Inc. (NYSE:PFE).

The takeaway here is that Microsoft might be down in the court of public opinion, but the company is far from out. Microsoft built an unmatched cash machine that a ham sandwich could run for decades before running out of mulligans. CEO Steve Ballmer is overdue for replacement, but the wheels will keep on turning until Microsoft’s board can find a suitable replacement. These margins weren’t pulled out of thin air, and they’re too strong to crumble overnight.

The article 1 Solid Reason to Own Microsoft Stock originally appeared on Fool.com.

Fool contributor Anders Bylund holds no position in any company mentioned. Check out Anders’ bio and holdings or follow him on Twitter and Google+. The Motley Fool owns shares of McDonald’s and JP Morgan Chase. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.