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STRCMicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock
$87.46$29.2B
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MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) Financial Ratios

Latest Ratios: P/E Ratio -5.7x · EV/EBITDA N/A · ROE -11.6%. (1997–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

STRC Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$29.2B$29.0B—————————
Enterprise Value$35.2B$35.0B—————————
P/E Ratio →-5.74——————————
P/S Ratio61.1960.86—————————
P/B Ratio0.500.57—————————
P/FCF———————————
P/OCF———————————

P/E links to full P/E history page with 30-year chart

STRC EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—73.39—————————
EV / EBITDA———————————
EV / EBIT———————————
EV / FCF———————————

STRC Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin68.7%68.7%72.1%77.8%79.4%82.0%81.1%79.4%80.0%80.8%81.9%
Operating Margin-1140.8%-1140.8%-399.8%-23.2%-255.5%-153.6%-2.8%-0.2%0.8%14.5%21.3%
Net Profit Margin-844.8%-844.8%-251.7%86.5%-294.4%-104.8%-1.6%7.1%4.5%3.6%18.0%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-11.6%-11.6%-11.4%48.2%-493.4%-69.9%-1.4%6.6%4.0%3.2%18.3%
ROA-9.2%-9.2%-7.6%12.0%-49.3%-21.3%-0.6%3.9%2.5%2.1%12.9%
ROIC-9.9%-9.9%-9.3%-2.7%-37.0%-27.9%-1.7%-0.3%1.0%34.3%52.5%
ROCE-12.6%-12.6%-12.4%-3.5%-47.8%-35.5%-1.5%-0.2%0.6%11.0%20.5%

STRC Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.160.160.401.04—2.281.030.20———
Debt / EBITDA———————13.62———
Net Debt / Equity—0.120.401.02—2.220.92-0.69-0.21-0.71-0.73
Net Debt / EBITDA———————-46.54-14.31-4.73-3.11
Debt / FCF———————-6.97-29.07-5.65-3.71
Interest Coverage-84.06-84.06-30.23-1.54-23.89-26.84-7.51————

STRC Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio5.625.620.710.830.830.860.952.793.014.663.69
Quick Ratio5.625.620.710.830.830.860.952.793.014.663.69
Cash Ratio5.055.050.110.140.140.200.212.102.233.653.18
Asset Turnover—0.010.020.100.210.140.330.530.580.540.67
Inventory Turnover———————————
Days Sales Outstanding—157.36142.71135.20138.38135.26149.92122.72125.69119.8059.21

STRC Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield1.5%1.3%—————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield———————————
FCF Yield———————————
Buyback Yield0.0%0.0%—————————
Total Shareholder Yield1.5%1.3%—————————
Shares Outstanding—$294M$193M$166M$113M$100M$97M$103M$114M$115M$115M

Key Metrics

Growth RegimeMixed
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Digital asset price volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Disconnect Between Software and Treasury

According to recent market data, the firm trades at a P/S ratio of 52.18, a figure that appears disconnected from traditional software valuation norms and suggests investors are pricing the equity as a leveraged proxy for digital assets rather than a standard enterprise analytics software provider.

The forward P/E of 1.56 implies that market participants are heavily discounting future earnings, likely due to the extreme volatility inherent in the company's digital asset treasury. This valuation profile warrants caution, as it suggests the stock price is driven more by speculative capital flows than by the underlying cash-generating capacity of the software business.

Capital Efficiency Obscured by Impairments

Based on reported financial statements, the ROIC has fluctuated wildly, reaching a negative 21.2% in 2025Q4, which indicates that the firm's aggressive capital allocation strategy is currently failing to generate positive returns on invested capital when accounting for the massive digital asset impairment charges recorded.

The decay in ROIC over the last ten quarters highlights the difficulty of compounding returns when the asset base is dominated by volatile, non-productive digital holdings. Investors should monitor whether the core software business can eventually stabilize these returns, or if the treasury strategy will continue to suppress capital efficiency metrics indefinitely.

Working Capital and Operational Drag

As indicated by the firm's historical data, the DSO has remained elevated, often exceeding 100 days, which suggests that the company faces significant challenges in converting its enterprise software license and maintenance billings into cash compared to more efficient SaaS peers in the application software industry.

The lack of a clear CCC trend, combined with high DSO, implies that the core software business may be struggling with customer payment cycles or aggressive revenue recognition policies. This operational inefficiency adds further pressure to a balance sheet already strained by the capital-intensive nature of its digital asset acquisition strategy.

Liquidity Buffers Under Extreme Stress

Based on quarterly filings, the current ratio has exhibited extreme volatility, swinging from 0.47 in 2024Q2 to 6.05 in 2026Q1, which suggests that the firm's liquidity position is highly sensitive to the timing of debt issuances and the market valuation of its digital asset holdings.

While the 2026Q1 liquidity spike appears robust, it may be a temporary artifact of capital market activity rather than sustained operational cash generation. Under severe market stress, the firm's reliance on liquidating digital assets to meet short-term obligations could lead to significant value destruction, making the current liquidity profile appear more fragile than the headline numbers suggest.

Misapplication of Traditional Equity Multiples

As reported in financial statements, the P/E ratio is frequently misapplied to this business model, as it fails to account for the non-cash impairment charges that distort GAAP earnings and obscure the underlying profitability of the firm's core enterprise analytics software operations and its treasury management.

Analysts should instead focus on adjusted operating income and NAV-based metrics to better understand the firm's true economic value. Relying on standard P/E multiples for a company that functions as a hybrid software-treasury vehicle likely leads to significant mispricing, as it ignores the unique capital recycling mechanism that defines the firm's current strategic direction.

Download Financial Ratios Data

Includes 30+ ratios · 29 years · Updated daily

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STRC — Frequently Asked Questions

Quick answers to the most common questions about buying STRC stock.

What is MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock's P/E ratio?

MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock's current P/E ratio is -5.7x. This places it at the 50th percentile of its historical range.

What is MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock's ROE?

MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock's return on equity (ROE) is -11.6%. The historical average is -19.4%.

Is STRC stock overvalued?

Based on historical data, MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock is trading at a P/E of -5.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock's dividend yield?

MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock's current dividend yield is 1.48%.

What are MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock's profit margins?

MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock has 68.7% gross margin and -1140.8% operating margin.