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 3 out of 10. The analysis compared the fundamentals against 121 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- DWD had positive earnings in the past year.
- DWD had a negative operating cash flow in the past year.
- 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's Return On Assets of 1.14% is in line compared to the rest of the industry. DWD outperforms 52.89% of its industry peers.
- The Return On Equity of DWD (14.15%) is better than 72.73% 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
- With a Profit Margin value of 13.32%, DWD perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- In the last couple of years the Profit Margin of DWD has declined.
- Looking at the Operating Margin, with a value of 18.06%, DWD is in the better half of 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.
- 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.
- DWD's Gross Margin has declined in the last couple of years.
| 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's Altman-Z score of -0.06 is in line compared 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.
- Looking at the Debt to Equity ratio, with a value of 7.41, DWD is doing worse than 66.94% of the companies in the same industry.
| 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.
- 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.
- DWD's Quick ratio of 0.30 is in line compared to the rest of the industry. DWD outperforms 41.32% of its industry peers.
| 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
- 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.
- Based on estimates for the next years, DWD will show a small growth in Revenue. The Revenue will grow by 5.14% on average per year.
EPS Next Y6.59%
EPS Next 2Y9.14%
EPS Next 3Y8.81%
EPS Next 5Y9.05%
Revenue Next Year6.46%
Revenue Next 2Y6.4%
Revenue Next 3Y4.74%
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
- With a Price/Earnings ratio of 17.47, DWD is valued on the expensive side.
- 66.12% of the companies in the same industry are more expensive than DWD, based on the Price/Earnings ratio.
- DWD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 16.38, which indicates a correct valuation of DWD.
- 71.07% of the companies in the same industry are more expensive than DWD, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of DWD to the average of the S&P500 Index (24.26), we can say DWD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 16.38 |
4.2 Price Multiples
- DWD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DWD is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.63 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DWD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.65
PEG (5Y)1.88
EPS Next 2Y9.14%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.09%, DWD has a reasonable but not impressive dividend return.
- DWD's Dividend Yield is a higher than the industry average which is at 3.07.
- Compared to an average S&P500 Dividend Yield of 1.82, DWD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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 2Y9.14%
EPS Next 3Y8.81%
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 17.47 and the Price/Book (PB) ratio is 2.58.
How financially healthy is MORGAN STANLEY?
The financial health rating of MORGAN STANLEY (DWD.DE) is 1 / 10.