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 225 industry peers in the Capital Markets industry. Both the profitability and financial health of MS have multiple concerns. While showing a medium growth rate, MS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MS was profitable.
MS had a negative operating cash flow in the past year.
Each year in the past 5 years MS has been profitable.
In the past 5 years MS reported 4 times negative operating cash flow.
1.2 Ratios
MS has a worse Return On Assets (0.84%) than 69.86% of its industry peers.
MS's Return On Equity of 10.25% is in line compared to the rest of the industry. MS outperforms 55.71% of its industry peers.
MS has a worse Return On Invested Capital (1.15%) than 70.78% 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
Looking at the Profit Margin, with a value of 10.10%, MS is doing worse than 61.64% of the companies in the same industry.
In the last couple of years the Profit Margin of MS has declined.
MS has a Operating Margin of 14.61%. This is in the lower half of the industry: MS underperforms 64.84% of its industry peers.
MS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 51.92%, MS is in the better half of the industry, outperforming 60.27% 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
There is no outstanding debt for MS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
MS has an Altman-Z score of -0.11. This is a bad value and indicates that MS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.11, MS is not doing good in the industry: 79.45% of the companies in the same industry are doing better.
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 88.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.11 |
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 83.11% of its industry peers.
MS has a Quick 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 has a worse Quick ratio (0.28) than 83.11% of its industry peers.
| 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 49.53%, which is quite impressive.
The Earnings Per Share has been growing by 8.88% on average over the past years. This is quite good.
The Revenue has grown by 11.53% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 10.85% 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 6.42% on average per year.
EPS Next Y12.99%
EPS Next 2Y11.63%
EPS Next 3Y11.19%
EPS Next 5Y10.85%
Revenue Next Year9.96%
Revenue Next 2Y7.89%
Revenue Next 3Y6.42%
Revenue Next 5YN/A
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 accelerating.
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
MS is valuated correctly with a Price/Earnings ratio of 16.59.
The rest of the industry has a similar Price/Earnings ratio as MS.
The average S&P500 Price/Earnings ratio is at 29.63. MS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.68 indicates a correct valuation of MS.
MS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. MS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.59 | ||
| Fwd PE | 14.68 |
4.2 Price Multiples
72.60% 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 | 20.85 |
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)1.28
PEG (5Y)1.87
EPS Next 2Y11.63%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 2.70%.
Compared to an average industry Dividend Yield of 10.00, MS has a dividend in line with its industry peers.
MS's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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 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 2Y11.63%
EPS Next 3Y11.19%
131.69
-2.65 (-1.97%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners61.62%
Inst Owner Change0.59%
Ins Owners0.19%
Ins Owner Change-0.05%
Market Cap211.63B
Analysts72.9
Price Target138.02 (4.81%)
Short Float %1.12%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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)7.11%
PT rev (3m)19.05%
EPS NQ rev (1m)4.76%
EPS NQ rev (3m)4.77%
EPS NY rev (1m)9.43%
EPS NY rev (3m)9.88%
Revenue NQ rev (1m)2.23%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)4%
Revenue NY rev (3m)5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.59 | ||
| Fwd PE | 14.68 | ||
| P/S | 2.01 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.04 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 20.85 |
EPS(TTM)7.94
EY6.03%
EPS(NY)8.97
Fwd EY6.81%
FCF(TTM)-19.73
FCFYN/A
OCF(TTM)-17.54
OCFYN/A
SpS65.45
BVpS64.5
TBVpS49.96
PEG (NY)1.28
PEG (5Y)1.87
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 | -0.11 |
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 Y12.99%
EPS Next 2Y11.63%
EPS Next 3Y11.19%
EPS Next 5Y10.85%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%25.8%
Revenue Next Year9.96%
Revenue Next 2Y7.89%
Revenue Next 3Y6.42%
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