MORGAN STANLEY (1MS.MI) Stock Fundamental Analysis
BIT:1MS - Euronext Milan - US6174464486 - Common Stock - Currency: EUR
1MS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 109 industry peers in the Capital Markets industry. There are concerns on the financial health of 1MS while its profitability can be described as average. 1MS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1MS was profitable.
1MS had a negative operating cash flow in the past year.
Each year in the past 5 years 1MS has been profitable.
The reported operating cash flow has been mixed in the past 5 years: 1MS reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.05%, 1MS is in line with its industry, outperforming 52.63% of the companies in the same industry.
The Return On Equity of 1MS (12.82%) is better than 70.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.35%, 1MS is in line with its industry, outperforming 53.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1MS is significantly below the industry average of 8.01%.
The last Return On Invested Capital (1.35%) for 1MS is above the 3 year average (1.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.82% | ||
| ROIC | 1.35% |
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
The Profit Margin of 1MS (12.43%) is comparable to the rest of the industry.
1MS's Profit Margin has declined in the last couple of years.
1MS's Operating Margin of 17.02% is fine compared to the rest of the industry. 1MS outperforms 63.16% of its industry peers.
1MS's Operating Margin has declined in the last couple of years.
1MS's Gross Margin of 54.40% is fine compared to the rest of the industry. 1MS outperforms 70.18% of its industry peers.
1MS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.02% | ||
| PM (TTM) | 12.43% | ||
| GM | 54.4% |
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 1MS has been reduced compared to 1 year ago.
The number of shares outstanding for 1MS has been increased compared to 5 years ago.
The debt/assets ratio for 1MS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.12, we must say that 1MS is in the distress zone and has some risk of bankruptcy.
1MS's Altman-Z score of -0.12 is in line compared to the rest of the industry. 1MS outperforms 43.86% of its industry peers.
1MS has a Debt/Equity ratio of 7.22. This is a high value indicating a heavy dependency on external financing.
1MS has a Debt to Equity ratio of 7.22. This is in the lower half of the industry: 1MS underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.12 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.26 indicates that 1MS may have some problems paying its short term obligations.
1MS has a Current ratio (0.26) which is in line with its industry peers.
1MS has a Quick Ratio of 0.26. This is a bad value and indicates that 1MS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.26, 1MS is in line with its industry, outperforming 42.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
1MS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.33%, which is quite impressive.
The Earnings Per Share has been growing by 8.88% on average over the past years. This is quite good.
1MS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.79%.
Measured over the past years, 1MS 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.
Based on estimates for the next years, 1MS will show a small growth in Revenue. The Revenue will grow by 3.10% on average per year.
EPS Next Y12.41%
EPS Next 2Y9.97%
EPS Next 3Y10.25%
EPS Next 5Y6.26%
Revenue Next Year9.06%
Revenue Next 2Y6.52%
Revenue Next 3Y5.46%
Revenue Next 5Y3.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
1MS is valuated correctly with a Price/Earnings ratio of 15.34.
68.42% of the companies in the same industry are more expensive than 1MS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.54, 1MS is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.60, which indicates a correct valuation of 1MS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MS indicates a somewhat cheap valuation: 1MS is cheaper than 73.68% of the companies listed in the same industry.
1MS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 13.6 |
4.2 Price Multiples
1MS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1MS is cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.56 |
4.3 Compensation for Growth
1MS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.24
PEG (5Y)1.73
EPS Next 2Y9.97%
EPS Next 3Y10.25%
5. Dividend
5.1 Amount
1MS has a Yearly Dividend Yield of 2.89%.
Compared to an average industry Dividend Yield of 5.91, 1MS pays a bit more dividend than its industry peers.
1MS's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
On average, the dividend of 1MS grows each year by 18.94%, which is quite nice.
Dividend Growth(5Y)18.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MS pays out 45.71% of its income as dividend. This is a bit on the high side, but may be sustainable.
1MS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.71%
EPS Next 2Y9.97%
EPS Next 3Y10.25%
BIT:1MS (6/6/2025, 7:00:00 PM)
115.18
-1.36 (-1.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.19%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap184.79B
Analysts72.9
Price Target115.33 (0.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend3.35
Dividend Growth(5Y)18.94%
DP45.71%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.77%
Min EPS beat(2)14.48%
Max EPS beat(2)27.07%
EPS beat(4)4
Avg EPS beat(4)16.07%
Min EPS beat(4)7.49%
Max EPS beat(4)27.07%
EPS beat(8)7
Avg EPS beat(8)10.85%
EPS beat(12)9
Avg EPS beat(12)6.29%
EPS beat(16)13
Avg EPS beat(16)7.3%
Revenue beat(2)2
Avg Revenue beat(2)4.34%
Min Revenue beat(2)3.91%
Max Revenue beat(2)4.78%
Revenue beat(4)4
Avg Revenue beat(4)3.58%
Min Revenue beat(4)1.95%
Max Revenue beat(4)4.78%
Revenue beat(8)7
Avg Revenue beat(8)21.17%
Revenue beat(12)11
Avg Revenue beat(12)25.52%
Revenue beat(16)14
Avg Revenue beat(16)19.87%
PT rev (1m)3.06%
PT rev (3m)-11.61%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-3.91%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 13.6 | ||
| P/S | 1.9 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.96 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 18.56 |
EPS(TTM)7.51
EY6.52%
EPS(NY)8.47
Fwd EY7.35%
FCF(TTM)-16.67
FCFYN/A
OCF(TTM)-14.83
OCFYN/A
SpS60.55
BVpS58.72
TBVpS46.06
PEG (NY)1.24
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.82% | ||
| ROCE | 3.09% | ||
| ROIC | 1.35% | ||
| ROICexc | 1.48% | ||
| ROICexgc | 1.55% | ||
| OM | 17.02% | ||
| PM (TTM) | 12.43% | ||
| GM | 54.4% | ||
| 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-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 32.42 | ||
| Cap/Depr | 66.5% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 0.4 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | -0.12 |
F-Score5
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 Y12.41%
EPS Next 2Y9.97%
EPS Next 3Y10.25%
EPS Next 5Y6.26%
Revenue 1Y (TTM)10.79%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%17.2%
Revenue Next Year9.06%
Revenue Next 2Y6.52%
Revenue Next 3Y5.46%
Revenue Next 5Y3.1%
EBIT growth 1Y43.88%
EBIT growth 3Y-3.64%
EBIT growth 5Y9.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-54.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-63.47%
OCF growth 3Y-65.77%
OCF growth 5Y-49.33%