MORGAN STANLEY (DWD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DWD - US6174464486 - Common Stock
152.32 EUR
-4.76 (-3.03%)
DWD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 118 industry peers in the Capital Markets industry. DWD has a medium profitability rating, but doesn't score so well on its financial health evaluation. DWD is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- In the past 5 years DWD has always been profitable.
- In multiple years DWD reported negative operating cash flow during the last 5 years.
1.2 Ratios
- With a Return On Assets value of 1.14%, DWD perfoms like the industry average, outperforming 52.89% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.15%, DWD is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
- The Return On Invested Capital of DWD (1.46%) is comparable to the rest of the industry.
| 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
- The Profit Margin of DWD (13.32%) is comparable to the rest of the industry.
- DWD's Profit Margin has declined in the last couple of years.
- DWD has a better Operating Margin (18.06%) than 61.98% of its industry peers.
- DWD's Operating Margin has declined in the last couple of years.
- DWD has a Gross Margin of 54.99%. This is in the better half of the industry: DWD outperforms 68.59% of its industry peers.
- 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
- DWD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- Based on the Altman-Z score of -0.06, we must say that DWD is in the distress zone and has some risk of bankruptcy.
- DWD has a Altman-Z score of -0.06. This is comparable to the rest of the industry: DWD outperforms 45.45% of its industry peers.
- A Debt/Equity ratio of 7.41 is on the high side and indicates that DWD has dependencies on debt financing.
- The Debt to Equity ratio of DWD (7.41) is worse than 66.94% 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.
- The Current ratio of DWD (0.30) is comparable to the rest of the industry.
- A Quick Ratio of 0.30 indicates that DWD may have some problems paying 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
- The Earnings Per Share has grown by an impressive 28.59% over the past year.
- 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.
- DWD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.54%.
- DWD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.86% yearly.
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.
- DWD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- DWD is valuated rather expensively with a Price/Earnings ratio of 17.51.
- Compared to the rest of the industry, the Price/Earnings ratio of DWD indicates a somewhat cheap valuation: DWD is cheaper than 66.94% of the companies listed in the same industry.
- DWD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 15.65, DWD is valued correctly.
- 74.38% of the companies in the same industry are more expensive than DWD, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, DWD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.65 |
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 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.33 |
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)1.47
PEG (5Y)1.89
EPS Next 2Y10.69%
EPS Next 3Y9.25%
5. Dividend
5.1 Amount
- DWD has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
- DWD's Dividend Yield is a higher than the industry average which is at 3.08.
- DWD's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| 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
- DWD pays out 41.70% of its income as dividend. 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 4 / 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 17.51 and the Price/Book (PB) ratio is 2.59.
How financially healthy is MORGAN STANLEY?
The financial health rating of MORGAN STANLEY (DWD.DE) is 1 / 10.