MORGAN STANLEY (MS)
US6174464486 - Common Stock
Taking everything into account, MS scores 3 out of 10 in our fundamental rating. MS was compared to 218 industry peers in the Capital Markets industry. MS may be in some trouble as it scores bad on both profitability and health. 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 Return On Assets of 0.81%. This is in the lower half of the industry: MS underperforms 72.09% of its industry peers.
The Return On Equity of MS (9.78%) is comparable to the rest of the industry.
MS has a worse Return On Invested Capital (1.12%) than 76.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MS is significantly below the industry average of 6.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 9.78% | ||
| ROIC | 1.12% |
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 9.62% is on the low side compared to the rest of the industry. MS is outperformed by 63.26% of its industry peers.
MS's Profit Margin has declined in the last couple of years.
The Operating Margin of MS (13.95%) is worse than 66.51% of its industry peers.
MS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 51.45%, MS perfoms like the industry average, outperforming 52.09% 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 | 13.95% | ||
| PM (TTM) | 9.62% | ||
| GM | 51.45% |
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
Compared to 1 year ago, MS has less shares outstanding
The number of shares outstanding for MS has been reduced compared to 5 years ago.
Compared to 1 year ago, MS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.10, we must say that MS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.10, MS is doing worse than 80.00% of the companies in the same industry.
MS has a Debt/Equity ratio of 6.97. This is a high value indicating a heavy dependency on external financing.
MS has a Debt to Equity ratio of 6.97. This is amonst the worse of the industry: MS underperforms 87.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.1 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MS has a Current Ratio of 0.28. This is a bad value and indicates that MS is not financially healthy enough and could expect problems in meeting its short term obligations.
MS's Current ratio of 0.28 is on the low side compared to the rest of the industry. MS is outperformed by 79.07% of its industry peers.
A Quick Ratio of 0.28 indicates that MS may have some problems paying its short term obligations.
The Quick ratio of MS (0.28) is worse than 79.07% of its industry peers.
| 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 20.25% over the past year.
The Earnings Per Share has been growing slightly by 2.60% on average over the past years.
MS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.84%.
MS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.89% yearly.
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
Based on estimates for the next years, MS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.33% on average per year.
Based on estimates for the next years, MS will show a small growth in Revenue. The Revenue will grow by 3.45% on average per year.
EPS Next Y42.2%
EPS Next 2Y24%
EPS Next 3Y19.21%
EPS Next 5Y10.33%
Revenue Next Year11.66%
Revenue Next 2Y8.13%
Revenue Next 3Y7.18%
Revenue Next 5Y3.45%
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
MS is valuated rather expensively with a Price/Earnings ratio of 20.12.
MS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MS to the average of the S&P500 Index (28.96), we can say MS is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.53 indicates a correct valuation of MS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MS is on the same level as its industry peers.
MS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MS is valued a bit cheaper than the industry average as 69.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.98 |
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.
MS's earnings are expected to grow with 19.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)7.73
EPS Next 2Y24%
EPS Next 3Y19.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.79%, MS has a reasonable but not impressive dividend return.
MS's Dividend Yield is comparable with the industry average which is at 9.01.
Compared to an average S&P500 Dividend Yield of 2.23, MS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.72%
Div Incr Years10
Div Non Decr Years13
5.3 Sustainability
MS pays out 60.30% of its income as dividend. This is not a sustainable payout ratio.
MS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.3%
EPS Next 2Y24%
EPS Next 3Y19.21%
MORGAN STANLEY
NYSE:MS (11/21/2024, 8:04:00 PM)
After market: 135 +0.01 (+0.01%)134.99
+3.3 (+2.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap217.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 16.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.48
PEG (5Y)7.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 9.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.95% | ||
| PM (TTM) | 9.62% | ||
| GM | 51.45% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.97 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)20.25%
EPS 3Y-6.76%
EPS 5Y
EPS Q2Q%
EPS Next Y42.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.84%
Revenue growth 3Y22.28%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y