MORGAN STANLEY (DWD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DWD - US6174464486 - Common Stock
152.32 EUR
-4.76 (-3.03%)
Taking everything into account, DWD scores 4 out of 10 in our fundamental rating. DWD was compared to 118 industry peers in the Capital Markets industry. While DWD is still in line with the averages on profitability rating, there are concerns on its financial health. DWD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year DWD was profitable.
- 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
- Looking at the Return On Assets, with a value of 1.14%, DWD is in line with its industry, outperforming 52.89% of the companies in the same industry.
- DWD's Return On Equity of 14.15% is fine compared to the rest of the industry. DWD outperforms 72.73% of its industry peers.
- DWD has a Return On Invested Capital (1.46%) which 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
- DWD's Profit Margin of 13.32% is in line compared to the rest of the industry. DWD outperforms 54.55% of its industry peers.
- In the last couple of years the Profit Margin of DWD has declined.
- With a decent Operating Margin value of 18.06%, DWD is doing good in the industry, outperforming 61.98% of the companies in the same industry.
- In the last couple of years the Operating Margin of DWD has declined.
- The Gross Margin of DWD (54.99%) is better than 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
- 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.
- DWD has a Altman-Z score (-0.06) which 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 has a Debt to Equity ratio of 7.41. This is in the lower half of the industry: DWD underperforms 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.
- DWD has a Current ratio (0.30) which 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.
- Looking at the last year, DWD shows a quite strong growth in Revenue. The Revenue has grown by 11.54% in the last year.
- 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
- DWD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.05% yearly.
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.51, which indicates a rather expensive current valuation of DWD.
- Based on the Price/Earnings ratio, DWD is valued a bit cheaper than the industry average as 66.94% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, DWD is valued a bit cheaper.
- DWD is valuated correctly with a Price/Forward Earnings ratio of 15.65.
- Based on the Price/Forward Earnings ratio, DWD is valued a bit cheaper than the industry average as 74.38% of the companies are valued more expensively.
- DWD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.65 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DWD is valued a bit cheaper than 72.73% of the companies 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
- With a Yearly Dividend Yield of 2.19%, DWD has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.08, DWD pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, DWD pays a bit more dividend than the S&P500 average.
| 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.
- DWD's earnings are growing slower than its dividend. 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 4 / 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.