MORGAN STANLEY (MS)
US6174464486 - Common Stock
We assign a fundamental rating of 3 out of 10 to MS. MS was compared to 220 industry peers in the Capital Markets industry. MS has a bad profitability rating. Also its financial health evaluation is rather negative. MS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MS had positive earnings in the past year.
In the past year MS has reported a negative cash flow from operations.
In the past 5 years MS has always been profitable.
In multiple years MS reported negative operating cash flow during the last 5 years.
1.2 Ratios
MS has a worse Return On Assets (0.84%) than 70.51% of its industry peers.
MS has a Return On Equity of 10.25%. This is comparable to the rest of the industry: MS outperforms 56.22% of its industry peers.
MS has a Return On Invested Capital of 1.17%. This is in the lower half of the industry: MS underperforms 76.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MS is significantly below the industry average of 7.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 10.25% | ||
| ROIC | 1.17% |
ROA(3y)0.94%
ROA(5y)0.95%
ROE(3y)10.98%
ROE(5y)10.74%
ROIC(3y)1.27%
ROIC(5y)1.29%
1.3 Margins
MS's Profit Margin of 10.10% is on the low side compared to the rest of the industry. MS is outperformed by 63.13% of its industry peers.
MS's Profit Margin has declined in the last couple of years.
MS has a Operating Margin of 14.61%. This is in the lower half of the industry: MS underperforms 66.36% of its industry peers.
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 53.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.61% | ||
| PM (TTM) | 10.1% | ||
| GM | 51.92% |
OM growth 3Y-21.61%
OM growth 5Y-10.02%
PM growth 3Y-23.7%
PM growth 5Y-11.55%
GM growth 3Y-15.44%
GM growth 5Y-6.86%
2. Health
2.1 Basic Checks
MS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MS has been reduced compared to 5 years ago.
MS has a worse debt/assets ratio than last year.
2.2 Solvency
MS has an Altman-Z score of -0.12. This is a bad value and indicates that MS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MS (-0.12) is worse than 79.72% of its industry peers.
MS has a Debt/Equity ratio of 7.05. This is a high value indicating a heavy dependency on external financing.
MS has a Debt to Equity ratio of 7.05. This is amonst the worse of the industry: MS underperforms 88.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.12 |
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.
MS has a Current ratio of 0.28. This is amonst the worse of the industry: MS underperforms 80.65% 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: 80.65% 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
MS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.25%, which is quite impressive.
MS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.60% yearly.
Looking at the last year, MS shows a quite strong growth in Revenue. The Revenue has grown by 15.84% in the last year.
Measured over the past years, MS shows a quite strong growth in Revenue. The Revenue has been growing by 13.89% on average per year.
EPS 1Y (TTM)20.25%
EPS 3Y-6.76%
EPS 5Y2.6%
EPS Q2Q%36.23%
Revenue 1Y (TTM)15.84%
Revenue growth 3Y22.28%
Revenue growth 5Y13.89%
Sales Q2Q%15.9%
3.2 Future
The Earnings Per Share is expected to grow by 13.71% on average over the next years. This is quite good.
Based on estimates for the next years, MS will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y41.98%
EPS Next 2Y24.26%
EPS Next 3Y19.59%
EPS Next 5Y13.71%
Revenue Next Year11.18%
Revenue Next 2Y8.18%
Revenue Next 3Y7.24%
Revenue Next 5Y4.72%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 18.40, the valuation of MS can be described as rather expensive.
MS's Price/Earnings is on the same level as the industry average.
MS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 15.06 indicates a correct valuation of MS.
The rest of the industry has a similar Price/Forward Earnings ratio as MS.
MS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 15.06 |
4.2 Price Multiples
67.28% 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 | 20.01 |
4.3 Compensation for Growth
MS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MS's earnings are expected to grow with 19.59% in the coming years.
PEG (NY)0.44
PEG (5Y)7.07
EPS Next 2Y24.26%
EPS Next 3Y19.59%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 3.07%. Purely for dividend investing, there may be better candidates out there.
MS's Dividend Yield is comparable with the industry average which is at 9.45.
Compared to an average S&P500 Dividend Yield of 2.34, MS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
On average, the dividend of MS grows each year by 20.72%, which is quite nice.
MS has paid a dividend for at least 10 years, which is 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
MS pays out 56.79% of its income as dividend. 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 2Y24.26%
EPS Next 3Y19.59%
MORGAN STANLEY
NYSE:MS (12/20/2024, 8:25:38 PM)
After market: 123.7 +0.26 (+0.21%)123.44
+2.94 (+2.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners61.62%
Inst Owner Change0.73%
Ins Owners0.19%
Ins Owner Change0.02%
Market Cap198.87B
Analysts71.61
Price Target124.54 (0.89%)
Short Float %1.25%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)7.42%
PT rev (3m)15.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.24%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)4.54%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.42%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.4 | ||
| Fwd PE | 15.06 | ||
| P/S | 1.89 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.92 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 20.01 |
EPS(TTM)6.71
EY5.44%
EPS(NY)8.2
Fwd EY6.64%
FCF(TTM)-19.68
FCFYN/A
OCF(TTM)-17.5
OCFYN/A
SpS65.29
BVpS64.34
TBVpS49.84
PEG (NY)0.44
PEG (5Y)7.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 10.25% | ||
| ROCE | 2.58% | ||
| ROIC | 1.17% | ||
| ROICexc | 1.28% | ||
| ROICexgc | 1.35% | ||
| OM | 14.61% | ||
| PM (TTM) | 10.1% | ||
| GM | 51.92% | ||
| FCFM | N/A |
ROA(3y)0.94%
ROA(5y)0.95%
ROE(3y)10.98%
ROE(5y)10.74%
ROIC(3y)1.27%
ROIC(5y)1.29%
ROICexc(3y)1.45%
ROICexc(5y)1.45%
ROICexgc(3y)1.53%
ROICexgc(5y)1.52%
ROCE(3y)2.92%
ROCE(5y)2.86%
ROICexcg growth 3Y-8.08%
ROICexcg growth 5Y-5.18%
ROICexc growth 3Y-8.43%
ROICexc growth 5Y-4.55%
OM growth 3Y-21.61%
OM growth 5Y-10.02%
PM growth 3Y-23.7%
PM growth 5Y-11.55%
GM growth 3Y-15.44%
GM growth 5Y-6.86%
F-Score4
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 | -0.12 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)70.63%
Cap/Depr(5y)63.86%
Cap/Sales(3y)4%
Cap/Sales(5y)3.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.25%
EPS 3Y-6.76%
EPS 5Y2.6%
EPS Q2Q%36.23%
EPS Next Y41.98%
EPS Next 2Y24.26%
EPS Next 3Y19.59%
EPS Next 5Y13.71%
Revenue 1Y (TTM)15.84%
Revenue growth 3Y22.28%
Revenue growth 5Y13.89%
Sales Q2Q%15.9%
Revenue Next Year11.18%
Revenue Next 2Y8.18%
Revenue Next 3Y7.24%
Revenue Next 5Y4.72%
EBIT growth 1Y22.82%
EBIT growth 3Y-4.14%
EBIT growth 5Y2.48%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-735.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-454.68%
OCF growth 3YN/A
OCF growth 5YN/A