MORGAN STANLEY (DWD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DWD - US6174464486 - Common Stock
154.26 EUR
+1.54 (+1.01%)
Overall DWD gets a fundamental rating of 3 out of 10. We evaluated DWD against 118 industry peers in the Capital Markets industry. DWD has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, DWD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- DWD had positive earnings in the past year.
- In the past year DWD has reported a negative cash flow from operations.
- DWD had positive earnings in each of the past 5 years.
- In multiple years DWD reported negative operating cash flow during the last 5 years.
1.2 Ratios
- DWD has a Return On Assets (1.14%) which is comparable to the rest of the industry.
- DWD's Return On Equity of 14.15% is fine compared to the rest of the industry. DWD outperforms 73.73% of its industry peers.
- DWD has a Return On Invested Capital (1.46%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.14% | ||
| ROE | 14.15% | ||
| ROIC | 1.46% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- DWD has a Profit Margin (13.32%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of DWD has declined.
- With a Operating Margin value of 18.06%, DWD perfoms like the industry average, outperforming 59.32% of the companies in the same industry.
- In the last couple of years the Operating Margin of DWD has declined.
- Looking at the Gross Margin, with a value of 54.99%, DWD is in the better half of the industry, outperforming 66.95% of the companies in the same industry.
- In the last couple of years the Gross Margin of DWD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.06% | ||
| PM (TTM) | 13.32% | ||
| GM | 54.99% |
OM growth 3Y-4.95%
OM growth 5Y-7.71%
PM growth 3Y-5.29%
PM growth 5Y-7.41%
GM growth 3Y-10.21%
GM growth 5Y-8.75%
2. Health
2.1 Basic Checks
- There is no outstanding debt for DWD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- DWD has an Altman-Z score of -0.06. This is a bad value and indicates that DWD is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of DWD (-0.06) is comparable to the rest of the industry.
- DWD has a Debt/Equity ratio of 7.41. This is a high value indicating a heavy dependency on external financing.
- DWD's Debt to Equity ratio of 7.41 is on the low side compared to the rest of the industry. DWD is outperformed by 65.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- DWD has a Current Ratio of 0.30. This is a bad value and indicates that DWD is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.30, DWD is in line with its industry, outperforming 42.37% of the companies in the same industry.
- DWD has a Quick Ratio of 0.30. This is a bad value and indicates that DWD is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of DWD (0.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
- DWD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.59%, which is quite impressive.
- Measured over the past years, DWD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.28% on average per year.
- The Revenue has grown by 11.54% in the past year. This is quite good.
- Measured over the past years, DWD shows a quite strong growth in Revenue. The Revenue has been growing by 17.86% on average per year.
EPS 1Y (TTM)28.59%
EPS 3Y18.47%
EPS 5Y9.28%
EPS Q2Q%20.72%
Revenue 1Y (TTM)11.54%
Revenue growth 3Y21.98%
Revenue growth 5Y17.86%
Sales Q2Q%10.28%
3.2 Future
- The Earnings Per Share is expected to grow by 9.05% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.14% on average over the next years.
EPS Next Y11.93%
EPS Next 2Y10.69%
EPS Next 3Y9.25%
EPS Next 5Y9.05%
Revenue Next Year8.65%
Revenue Next 2Y7.01%
Revenue Next 3Y6.07%
Revenue Next 5Y5.14%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.87, the valuation of DWD can be described as rather expensive.
- 67.80% of the companies in the same industry are more expensive than DWD, based on the Price/Earnings ratio.
- DWD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 15.98, the valuation of DWD can be described as correct.
- DWD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DWD is cheaper than 72.03% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DWD to the average of the S&P500 Index (25.98), we can say DWD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.87 | ||
| Fwd PE | 15.98 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DWD indicates a somewhat cheap valuation: DWD is cheaper than 71.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.44 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.5
PEG (5Y)1.93
EPS Next 2Y10.69%
EPS Next 3Y9.25%
5. Dividend
5.1 Amount
- DWD has a Yearly Dividend Yield of 2.19%.
- Compared to an average industry Dividend Yield of 3.08, DWD pays a bit more dividend than its industry peers.
- DWD's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
- The dividend of DWD is nicely growing with an annual growth rate of 18.94%!
Dividend Growth(5Y)18.94%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 41.70% of the earnings are spent on dividend by DWD. This is a bit on the high side, but may be sustainable.
- The dividend of DWD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.7%
EPS Next 2Y10.69%
EPS Next 3Y9.25%
MORGAN STANLEY / DWD.DE FAQ
Can you provide the ChartMill fundamental rating for MORGAN STANLEY?
ChartMill assigns a fundamental rating of 3 / 10 to DWD.DE.
What is the valuation status for DWD stock?
ChartMill assigns a valuation rating of 3 / 10 to MORGAN STANLEY (DWD.DE). This can be considered as Overvalued.
How profitable is MORGAN STANLEY (DWD.DE) stock?
MORGAN STANLEY (DWD.DE) has a profitability rating of 3 / 10.
What are the PE and PB ratios of MORGAN STANLEY (DWD.DE) stock?
The Price/Earnings (PE) ratio for MORGAN STANLEY (DWD.DE) is 17.87 and the Price/Book (PB) ratio is 2.64.
How financially healthy is MORGAN STANLEY?
The financial health rating of MORGAN STANLEY (DWD.DE) is 1 / 10.