MORGAN STANLEY (MS) Stock Fundamental Analysis
NYSE:MS - New York Stock Exchange, Inc. - US6174464486 - Common Stock
We assign a fundamental rating of 3 out of 10 to MS. MS was compared to 224 industry peers in the Capital Markets industry. MS has a bad profitability rating. Also its financial health evaluation is rather negative. MS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MS was profitable.
MS had a negative operating cash flow in the past year.
MS had positive earnings in each of the past 5 years.
In the past 5 years MS reported 4 times negative operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.84%, MS is doing worse than 69.86% of the companies in the same industry.
MS has a Return On Equity (10.25%) which is in line with its industry peers.
The Return On Invested Capital of MS (1.15%) is worse than 75.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 10.25% | ||
| ROIC | 1.15% |
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
MS has a Profit Margin of 10.10%. This is in the lower half of the industry: MS underperforms 62.56% of its industry peers.
MS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 14.61%, MS is not doing good in the industry: 65.75% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MS has declined.
With a Gross Margin value of 51.92%, MS perfoms like the industry average, outperforming 53.88% of the companies in the same industry.
MS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.61% | ||
| PM (TTM) | 10.1% | ||
| GM | 51.92% |
OM growth 3Y-20.12%
OM growth 5Y-4.82%
PM growth 3Y-20.6%
PM growth 5Y-5.48%
GM growth 3Y-16.51%
GM growth 5Y-5.78%
2. Health
2.1 Basic Checks
MS 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
MS has an Altman-Z score of -0.10. This is a bad value and indicates that MS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.10, MS is doing worse than 79.91% of the companies in the same industry.
MS has a Debt/Equity ratio of 7.05. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 7.05, MS is not doing good in the industry: 88.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.1 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.28 indicates that MS may have some problems paying its short term obligations.
The Current ratio of MS (0.28) is worse than 79.91% of its industry peers.
A Quick Ratio of 0.28 indicates that MS may have some problems paying its short term obligations.
With a Quick ratio value of 0.28, MS is not doing good in the industry: 79.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.53% over the past year.
The Earnings Per Share has been growing by 8.88% on average over the past years. This is quite good.
MS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.53%.
MS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.79% yearly.
EPS 1Y (TTM)49.53%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%124.24%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%25.8%
3.2 Future
MS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.25% yearly.
Based on estimates for the next years, MS will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y3.26%
EPS Next 2Y6.95%
EPS Next 3Y3.79%
EPS Next 5Y9.25%
Revenue Next Year8.4%
Revenue Next 2Y7.07%
Revenue Next 3Y5.77%
Revenue Next 5YN/A
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
A Price/Earnings ratio of 17.29 indicates a rather expensive valuation of MS.
The rest of the industry has a similar Price/Earnings ratio as MS.
The average S&P500 Price/Earnings ratio is at 28.29. MS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.75, MS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MS is on the same level as its industry peers.
MS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.29 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
68.04% of the companies in the same industry are more expensive than MS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.3
PEG (5Y)1.95
EPS Next 2Y6.95%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 9.45, MS has a dividend in line with its industry peers.
MS's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
The dividend of MS is nicely growing with an annual growth rate of 20.72%!
MS has been paying a dividend for at least 10 years, so it has a reliable track record.
MS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)20.72%
Div Incr Years10
Div Non Decr Years13
5.3 Sustainability
56.79% of the earnings are spent on dividend by MS. This is a bit on the high side, but may be sustainable.
MS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.79%
EPS Next 2Y6.95%
EPS Next 3Y3.79%
MORGAN STANLEY
NYSE:MS (1/21/2025, 8:15:28 PM)
After market: 137 -0.3 (-0.22%)137.3
-0.57 (-0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners61.62%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change-0.03%
Market Cap221.20B
Analysts72.5
Price Target128.86 (-6.15%)
Short Float %1.12%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend3.49
Dividend Growth(5Y)20.72%
DP56.79%
Div Incr Years10
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.37%
Min EPS beat(2)7.49%
Max EPS beat(2)15.26%
EPS beat(4)3
Avg EPS beat(4)8.95%
Min EPS beat(4)-5.06%
Max EPS beat(4)18.12%
EPS beat(8)7
Avg EPS beat(8)6.23%
EPS beat(12)9
Avg EPS beat(12)4.38%
EPS beat(16)13
Avg EPS beat(16)9.21%
Revenue beat(2)2
Avg Revenue beat(2)2.81%
Min Revenue beat(2)1.95%
Max Revenue beat(2)3.68%
Revenue beat(4)3
Avg Revenue beat(4)1.46%
Min Revenue beat(4)-1.77%
Max Revenue beat(4)3.68%
Revenue beat(8)5
Avg Revenue beat(8)14.34%
Revenue beat(12)8
Avg Revenue beat(12)11.87%
Revenue beat(16)12
Avg Revenue beat(16)11.27%
PT rev (1m)3.47%
PT rev (3m)21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.24%
EPS NY rev (1m)0%
EPS NY rev (3m)4.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.42%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.29 | ||
| Fwd PE | 16.75 | ||
| P/S | 2.1 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.13 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 21.16 |
EPS(TTM)7.94
EY5.78%
EPS(NY)8.2
Fwd EY5.97%
FCF(TTM)-19.68
FCFYN/A
OCF(TTM)-17.5
OCFYN/A
SpS65.29
BVpS64.34
TBVpS49.84
PEG (NY)5.3
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 10.25% | ||
| ROCE | 2.58% | ||
| ROIC | 1.15% | ||
| ROICexc | 1.26% | ||
| ROICexgc | 1.33% | ||
| OM | 14.61% | ||
| PM (TTM) | 10.1% | ||
| GM | 51.92% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-20.12%
OM growth 5Y-4.82%
PM growth 3Y-20.6%
PM growth 5Y-5.48%
GM growth 3Y-16.51%
GM growth 5Y-5.78%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 36.02 | ||
| Cap/Depr | 71.35% | ||
| Cap/Sales | 3.34% | ||
| Interest Coverage | 0.33 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | -0.1 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)49.53%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%124.24%
EPS Next Y3.26%
EPS Next 2Y6.95%
EPS Next 3Y3.79%
EPS Next 5Y9.25%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%25.8%
Revenue Next Year8.4%
Revenue Next 2Y7.07%
Revenue Next 3Y5.77%
Revenue Next 5YN/A
EBIT growth 1Y22.82%
EBIT growth 3Y-3.64%
EBIT growth 5Y9.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y4.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.34%
OCF growth 3YN/A
OCF growth 5YN/A