MORGAN STANLEY (MS) Stock Fundamental Analysis
NYSE:MS - New York Stock Exchange, Inc. - US6174464486 - Common Stock - Currency: USD
MS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 227 industry peers in the Capital Markets industry. MS has a bad profitability rating. Also its financial health evaluation is rather negative. MS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MS had positive earnings in the past year.
In the past year MS had a positive cash flow from operations.
MS had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: MS reported negative operating cash flow in multiple years.
1.2 Ratios
MS has a Return On Assets of 1.05%. This is in the lower half of the industry: MS underperforms 66.08% of its industry peers.
MS's Return On Equity of 12.25% is fine compared to the rest of the industry. MS outperforms 65.20% of its industry peers.
With a Return On Invested Capital value of 1.34%, MS is not doing good in the industry: 69.16% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for MS is significantly below the industry average of 7.06%.
The 3 year average ROIC (1.17%) for MS is below the current ROIC(1.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.25% | ||
| ROIC | 1.34% |
ROA(3y)0.89%
ROA(5y)0.97%
ROE(3y)10.46%
ROE(5y)11.1%
ROIC(3y)1.17%
ROIC(5y)1.28%
1.3 Margins
MS's Profit Margin of 11.93% is in line compared to the rest of the industry. MS outperforms 42.73% of its industry peers.
In the last couple of years the Profit Margin of MS has declined.
MS has a worse Operating Margin (16.40%) than 63.44% of its industry peers.
MS's Operating Margin has declined in the last couple of years.
MS has a Gross Margin of 53.71%. This is in the better half of the industry: MS outperforms 63.00% of its industry peers.
In the last couple of years the Gross Margin of MS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.4% | ||
| PM (TTM) | 11.93% | ||
| GM | 53.71% |
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
The number of shares outstanding for MS has been reduced compared to 1 year ago.
Compared to 5 years ago, MS has more shares outstanding
The debt/assets ratio for MS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.09, we must say that MS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MS (-0.09) is worse than 77.09% of its industry peers.
A Debt/Equity ratio of 6.99 is on the high side and indicates that MS has dependencies on debt financing.
MS has a worse Debt to Equity ratio (6.99) than 86.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.09 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.30 indicates that MS may have some problems paying its short term obligations.
The Current ratio of MS (0.30) is worse than 80.18% of its industry peers.
A Quick Ratio of 0.30 indicates that MS may have some problems paying its short term obligations.
MS has a worse Quick ratio (0.30) than 80.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
MS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.33%, which is quite impressive.
Measured over the past years, MS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.88% on average per year.
MS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.79%.
Measured over the past years, MS shows a quite strong growth in Revenue. The Revenue has been growing by 14.79% on average per year.
EPS 1Y (TTM)51.33%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%28.71%
Revenue 1Y (TTM)10.79%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%17.2%
3.2 Future
The Earnings Per Share is expected to grow by 6.26% on average over the next years.
The Revenue is expected to grow by 3.10% on average over the next years.
EPS Next Y12.75%
EPS Next 2Y11.49%
EPS Next 3Y11.06%
EPS Next 5Y6.26%
Revenue Next Year8.15%
Revenue Next 2Y6.93%
Revenue Next 3Y5.75%
Revenue Next 5Y3.1%
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 decreasing.
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
With a Price/Earnings ratio of 12.81, MS is valued correctly.
MS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. MS is valued rather cheaply when compared to this.
MS is valuated reasonably with a Price/Forward Earnings ratio of 11.06.
MS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.08. MS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 11.06 |
4.2 Price Multiples
MS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MS is cheaper than 77.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.73 |
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)1.01
PEG (5Y)1.44
EPS Next 2Y11.49%
EPS Next 3Y11.06%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 3.43%.
In the last 3 months the price of MS has falen by -20.81%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MS's Dividend Yield is comparable with the industry average which is at 8.84.
MS's Dividend Yield is a higher than the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
On average, the dividend of MS grows each year by 18.94%, 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)18.94%
Div Incr Years10
Div Non Decr Years13
5.3 Sustainability
MS pays out 47.95% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of MS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.95%
EPS Next 2Y11.49%
EPS Next 3Y11.06%
109.18
+1.32 (+1.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.19%
Inst Owner Change0.01%
Ins Owners0.19%
Ins Owner Change0%
Market Cap175.62B
Analysts72.9
Price Target141.21 (29.34%)
Short Float %1.16%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend3.8
Dividend Growth(5Y)18.94%
DP47.95%
Div Incr Years10
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.16%
Min EPS beat(2)15.26%
Max EPS beat(2)27.07%
EPS beat(4)4
Avg EPS beat(4)16.98%
Min EPS beat(4)7.49%
Max EPS beat(4)27.07%
EPS beat(8)7
Avg EPS beat(8)9.28%
EPS beat(12)9
Avg EPS beat(12)6.46%
EPS beat(16)13
Avg EPS beat(16)7.97%
Revenue beat(2)2
Avg Revenue beat(2)4.23%
Min Revenue beat(2)3.68%
Max Revenue beat(2)4.78%
Revenue beat(4)4
Avg Revenue beat(4)3.09%
Min Revenue beat(4)1.95%
Max Revenue beat(4)4.78%
Revenue beat(8)5
Avg Revenue beat(8)8.56%
Revenue beat(12)9
Avg Revenue beat(12)12.37%
Revenue beat(16)12
Avg Revenue beat(16)10.47%
PT rev (1m)-0.92%
PT rev (3m)9.58%
EPS NQ rev (1m)-4.14%
EPS NQ rev (3m)3.14%
EPS NY rev (1m)0.75%
EPS NY rev (3m)9.19%
Revenue NQ rev (1m)-1.78%
Revenue NQ rev (3m)3.44%
Revenue NY rev (1m)-1.68%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 11.06 | ||
| P/S | 1.64 | ||
| P/FCF | N/A | ||
| P/OCF | 128.94 | ||
| P/B | 1.68 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 16.73 |
EPS(TTM)8.52
EY7.8%
EPS(NY)9.87
Fwd EY9.04%
FCF(TTM)-1.31
FCFYN/A
OCF(TTM)0.85
OCFY0.78%
SpS66.7
BVpS64.97
TBVpS50.58
PEG (NY)1.01
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.25% | ||
| ROCE | 3.05% | ||
| ROIC | 1.34% | ||
| ROICexc | 1.5% | ||
| ROICexgc | 1.58% | ||
| OM | 16.4% | ||
| PM (TTM) | 11.93% | ||
| GM | 53.71% | ||
| FCFM | N/A |
ROA(3y)0.89%
ROA(5y)0.97%
ROE(3y)10.46%
ROE(5y)11.1%
ROIC(3y)1.17%
ROIC(5y)1.28%
ROICexc(3y)1.31%
ROICexc(5y)1.45%
ROICexgc(3y)1.39%
ROICexgc(5y)1.52%
ROCE(3y)2.71%
ROCE(5y)2.94%
ROICexcg growth 3Y-6.85%
ROICexcg growth 5Y1.53%
ROICexc growth 3Y-6.8%
ROICexc growth 5Y1.26%
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-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 32.08 | ||
| Cap/Depr | 67.08% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 0.38 | ||
| Cash Conversion | 5.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | -0.09 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)74.75%
Cap/Depr(5y)63.46%
Cap/Sales(3y)3.81%
Cap/Sales(5y)3.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.33%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%28.71%
EPS Next Y12.75%
EPS Next 2Y11.49%
EPS Next 3Y11.06%
EPS Next 5Y6.26%
Revenue 1Y (TTM)10.79%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%17.2%
Revenue Next Year8.15%
Revenue Next 2Y6.93%
Revenue Next 3Y5.75%
Revenue Next 5Y3.1%
EBIT growth 1Y41.98%
EBIT growth 3Y-3.64%
EBIT growth 5Y9.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y94.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y104.06%
OCF growth 3Y-65.77%
OCF growth 5Y-49.33%