The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 47 | — | 20.8x | Around median | |
Growth | 25 | 6.8% | 6.1% | Bottom tier | |
Quality | 32 | -32.2% | 6.6% | Bottom tier | |
Safety | 74 | — | 0.7x | Top tier | |
Capital Return | 24 | — | 2.02% | Bottom tier | |
Momentum | 5 | -66.1% | 4.1% | Bottom tier | |
Sentiment | 71 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Strategy Inc (known by its ticker MSTR on the NASDAQ exchange) is one of the leading global companies adopting a unique model that integrates its traditional enterprise software and business analytics operations with an innovative strategy to hold Bitcoin as its primary treasury reserve asset. The company generates its cash flows by selling software licenses and cloud services, alongside cleverly utilizing capital markets to issue common stock and digital preferred credit instruments like Stretch (SDRC) to fund ongoing acquisitions of the cryptocurrency, making it the largest institutional holder of the currency in the world with a share close to 3.9% of the final total supply.
In the first quarter of 2026, the company's financial results showed operational stability in the software segment, with revenues reaching $124.3 million and a gross profit of $83.4 million, representing a strong gross profit margin of approximately 67%. However, the bottom-line results were severely impacted by price fluctuations in the cryptocurrency market, as the company recorded a massive net loss of $12.5 billion according to official EDGAR data (and an operating loss of $14.5 billion), driven entirely by non-cash book losses resulting from the fair value revaluation of its massive Bitcoin holdings at the end of the quarter.
Strategy Inc stock is currently trading below the consensus analyst price target of $251.6, with the forecast range spanning from a low of $163 to an optimistic high of $350. The current analyst consensus points to a clear Buy recommendation, supported by the positive valuation of the company's long-term digital assets and its successful expansion into digital credit instruments, despite the absence of a specific P/E ratio due to recent net losses.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The Stretch (SDRC) product represents an innovative digital credit instrument in the form of preferred stock with a variable interest rate currently at 11.5% annually. The company successfully raised $8.5 billion through this product within just 9 months as a non-dilutive alternative to common stock and traditional debt. The company uses this liquidity to boost its Bitcoin holdings and expand its financial flexibility without increasing balance sheet risk.
These record losses are mainly due to the non-cash fair value impairment of the company's Bitcoin holdings by $14.5 billion at the end of the first quarter of 2026, resulting from the decline in the cryptocurrency's price to around $67,800. These losses are book losses linked to market volatility and do not affect the operating cash liquidity of the company, which maintains a stable USD cash reserve of $2.25 billion.
Strategy Inc's management proposes adjusting the Stretch dividend payment frequency to semi-monthly (24 times a year) instead of the current monthly system (12 times a year). This adjustment aims to reduce the reinvestment gap for investors and improve the efficiency of the stock's trading around its target price of between $99 and $101. If approved by shareholders in the vote scheduled for early June, the first record date will be June 30, 2026, and the first payment will be on July 15, 2026.
Automated analysis for informational purposes only — not investment advice.
Yes, management led by Michael Saylor and Phong Le hinted at the possibility of tactically selling portions of Bitcoin holdings before the end of 2026, specifically coins with a high purchase cost (above $80,000). This move aims to realize paper tax losses to utilize $2.2 billion in deferred tax assets on the balance sheet, or to use the proceeds to repurchase convertible debt that is more dilutive to shareholders.
Recent insider transaction data points to a strong sell trend (strong_sell) with net sales of $5.9 million over the past three months ending June 9, 2026. During this period, 34 sell transactions were recorded by executives compared to only 3 buy transactions. Although this behavior may concern retail investors, it is often linked to pre-scheduled selling plans and does not negate management's continued commitment to the company's long-term strategy.