MORGAN STANLEY (MS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MS - US6174464486 - Common Stock
176.83 USD
+0.32 (+0.18%)
176.83 USD
0 (0%)
MS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. MS may be in some trouble as it scores bad on both profitability and health. MS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MS was profitable.
In the past year MS has reported a negative cash flow from operations.
Each year in the past 5 years MS has been profitable.
In multiple years MS reported negative operating cash flow during the last 5 years.
1.2 Ratios
MS's Return On Assets of 1.14% is on the low side compared to the rest of the industry. MS is outperformed by 63.71% of its industry peers.
MS has a better Return On Equity (14.15%) than 74.26% of its industry peers.
MS's Return On Invested Capital of 1.46% is on the low side compared to the rest of the industry. MS is outperformed by 63.29% of its industry peers.
MS had an Average Return On Invested Capital over the past 3 years of 1.17%. This is significantly below the industry average of 6.99%.
The 3 year average ROIC (1.17%) for MS is below the current ROIC(1.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.14% | ||
| ROE | 14.15% | ||
| ROIC | 1.46% |
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
With a Profit Margin value of 13.32%, MS perfoms like the industry average, outperforming 46.41% of the companies in the same industry.
MS's Profit Margin has declined in the last couple of years.
MS's Operating Margin of 18.06% is in line compared to the rest of the industry. MS outperforms 43.88% of its industry peers.
In the last couple of years the Operating Margin of MS has declined.
MS has a Gross Margin of 54.99%. This is in the better half of the industry: MS outperforms 67.09% of its industry peers.
In the last couple of years the Gross Margin of MS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.06% | ||
| PM (TTM) | 13.32% | ||
| GM | 54.99% |
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
Compared to 1 year ago, MS has less shares outstanding
Compared to 5 years ago, MS has more shares outstanding
MS has a worse debt/assets ratio than last year.
2.2 Solvency
MS has an Altman-Z score of -0.07. This is a bad value and indicates that MS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.07, MS is doing worse than 77.22% of the companies in the same industry.
MS has a Debt/Equity ratio of 7.41. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 7.41, MS is doing worse than 87.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.07 |
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.
MS has a worse Current ratio (0.30) than 81.86% 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 81.86% 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 45.31%, 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.
Looking at the last year, MS shows a quite strong growth in Revenue. The Revenue has grown by 11.08% in the last year.
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)45.31%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%48.94%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%18.47%
3.2 Future
The Earnings Per Share is expected to grow by 12.43% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y28.65%
EPS Next 2Y16.89%
EPS Next 3Y15.31%
EPS Next 5Y12.43%
Revenue Next Year16.58%
Revenue Next 2Y10.97%
Revenue Next 3Y9.26%
Revenue Next 5Y7.2%
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 18.14, 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 26.34.
MS is valuated correctly with a Price/Forward Earnings ratio of 16.30.
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 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MS is valued a bit cheaper than 71.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.19 |
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 15.31% in the coming years.
PEG (NY)0.63
PEG (5Y)2.04
EPS Next 2Y16.89%
EPS Next 3Y15.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.29%, MS has a reasonable but not impressive dividend return.
MS's Dividend Yield is comparable with the industry average which is at 8.30.
Compared to an average S&P500 Dividend Yield of 2.31, MS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
The dividend of MS is nicely growing with an annual growth rate of 18.94%!
MS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)18.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
41.70% of the earnings are spent on dividend by MS. 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.
DP41.7%
EPS Next 2Y16.89%
EPS Next 3Y15.31%
176.83
+0.32 (+0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.54%
Inst Owner Change0.3%
Ins Owners0.19%
Ins Owner Change-0.05%
Market Cap281.34B
Revenue(TTM)116.83B
Net Income(TTM)15.56B
Analysts74.55
Price Target173.15 (-2.08%)
Short Float %1.16%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend3.8
Dividend Growth(5Y)18.94%
DP41.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.52%
Min EPS beat(2)5.77%
Max EPS beat(2)29.27%
EPS beat(4)4
Avg EPS beat(4)19.15%
Min EPS beat(4)5.77%
Max EPS beat(4)29.27%
EPS beat(8)7
Avg EPS beat(8)14.05%
EPS beat(12)11
Avg EPS beat(12)10.53%
EPS beat(16)13
Avg EPS beat(16)8.07%
Revenue beat(2)2
Avg Revenue beat(2)3.7%
Min Revenue beat(2)1.43%
Max Revenue beat(2)5.96%
Revenue beat(4)4
Avg Revenue beat(4)4.02%
Min Revenue beat(4)1.43%
Max Revenue beat(4)5.96%
Revenue beat(8)7
Avg Revenue beat(8)2.74%
Revenue beat(12)9
Avg Revenue beat(12)10.9%
Revenue beat(16)12
Avg Revenue beat(16)9.91%
PT rev (1m)1.49%
PT rev (3m)16.55%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)14.02%
EPS NY rev (1m)0.19%
EPS NY rev (3m)11.46%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)5.41%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)4.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.14 | ||
| Fwd PE | 16.3 | ||
| P/S | 2.41 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.56 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 20.19 |
EPS(TTM)9.75
EY5.51%
EPS(NY)10.85
Fwd EY6.14%
FCF(TTM)-4.24
FCFYN/A
OCF(TTM)-2.31
OCFYN/A
SpS73.43
BVpS69.12
TBVpS54.77
PEG (NY)0.63
PEG (5Y)2.04
Graham Number123.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.14% | ||
| ROE | 14.15% | ||
| ROCE | 3.33% | ||
| ROIC | 1.46% | ||
| ROICexc | 1.61% | ||
| ROICexgc | 1.7% | ||
| OM | 18.06% | ||
| PM (TTM) | 13.32% | ||
| GM | 54.99% | ||
| 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)1.53%
ROCE(3y)2.71%
ROCE(5y)2.95%
ROICexgc growth 3Y-7.03%
ROICexgc growth 5Y1.53%
ROICexc growth 3Y-6.98%
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-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 31.03 | ||
| Cap/Depr | 59.4% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 0.45 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | -0.07 |
F-Score6
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)45.31%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%48.94%
EPS Next Y28.65%
EPS Next 2Y16.89%
EPS Next 3Y15.31%
EPS Next 5Y12.43%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%18.47%
Revenue Next Year16.58%
Revenue Next 2Y10.97%
Revenue Next 3Y9.26%
Revenue Next 5Y7.2%
EBIT growth 1Y37.32%
EBIT growth 3Y-3.64%
EBIT growth 5Y9.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y79.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y87.65%
OCF growth 3Y-65.77%
OCF growth 5Y-49.33%
MORGAN STANLEY / MS FAQ
Can you provide the ChartMill fundamental rating for MORGAN STANLEY?
ChartMill assigns a fundamental rating of 3 / 10 to MS.
What is the valuation status for MS stock?
ChartMill assigns a valuation rating of 4 / 10 to MORGAN STANLEY (MS). This can be considered as Fairly Valued.
What is the profitability of MS stock?
MORGAN STANLEY (MS) has a profitability rating of 3 / 10.
Can you provide the financial health for MS stock?
The financial health rating of MORGAN STANLEY (MS) is 0 / 10.
Can you provide the dividend sustainability for MS stock?
The dividend rating of MORGAN STANLEY (MS) is 4 / 10 and the dividend payout ratio is 41.7%.