MORGAN STANLEY (MS)
US6174464486 - Common Stock
Taking everything into account, MS scores 3 out of 10 in our fundamental rating. MS was compared to 221 industry peers in the Capital Markets industry. MS has a bad profitability rating. Also its financial health evaluation is rather negative. MS has a correct valuation and a medium 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.
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
With a Return On Assets value of 0.81%, MS is not doing good in the industry: 71.89% of the companies in the same industry are doing better.
MS has a Return On Equity (9.78%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 1.12%, MS is doing worse than 77.42% of the companies in the same industry.
MS had an Average Return On Invested Capital over the past 3 years of 1.27%. This is significantly below the industry average of 17.62%.
| 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 has a worse Profit Margin (9.62%) than 64.06% of its industry peers.
MS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 13.95%, MS is not doing good in the industry: 67.28% of the companies in the same industry are doing better.
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 51.15% 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
Compared to 5 years ago, MS has less shares outstanding
Compared to 1 year ago, MS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.12, we must say that MS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MS (-0.12) is worse than 81.11% of its industry peers.
A Debt/Equity ratio of 6.97 is on the high side and indicates that MS has dependencies on debt financing.
MS's Debt to Equity ratio of 6.97 is on the low side compared to the rest of the industry. MS is outperformed by 88.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.97 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.12 |
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 worse Current ratio (0.28) than 82.03% 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.
With a Quick ratio value of 0.28, MS is not doing good in the industry: 82.03% of the companies in the same industry are doing better.
| 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 nice 9.52% over the past year.
The Earnings Per Share has been growing slightly by 2.60% on average over the past years.
MS shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.72%.
The Revenue has been growing by 13.89% on average over the past years. This is quite good.
EPS 1Y (TTM)9.52%
EPS 3Y-6.76%
EPS 5Y2.6%
EPS Q2Q%46.77%
Revenue 1Y (TTM)23.72%
Revenue growth 3Y22.28%
Revenue growth 5Y13.89%
Sales Q2Q%11.61%
3.2 Future
MS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.33% yearly.
MS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.45% yearly.
EPS Next Y35.82%
EPS Next 2Y21.98%
EPS Next 3Y17.79%
EPS Next 5Y10.33%
Revenue Next Year8.88%
Revenue Next 2Y6.73%
Revenue Next 3Y5.76%
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.
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 17.31, MS is valued on the expensive side.
MS's Price/Earnings ratio is in line with the industry average.
MS is valuated rather cheaply when we compare the Price/Earnings ratio to 30.97, which is the current average of the S&P500 Index.
MS is valuated correctly with a Price/Forward Earnings ratio of 13.60.
MS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MS to the average of the S&P500 Index (22.29), we can say MS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.31 | ||
| Fwd PE | 13.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MS is valued a bit cheaper than 69.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.96 |
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 17.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)6.65
EPS Next 2Y21.98%
EPS Next 3Y17.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.54%, MS has a reasonable but not impressive dividend return.
MS's Dividend Yield is comparable with the industry average which is at 8.99.
MS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y21.98%
EPS Next 3Y17.79%
MORGAN STANLEY
NYSE:MS (10/8/2024, 8:11:53 PM)
After market: 106.49 -1 (-0.93%)107.49
-0.15 (-0.14%)
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 Cap173.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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)
Avg Revenue beat(16)
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 | 17.31 | ||
| Fwd PE | 13.6 | ||
| 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)6.65
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)9.52%
EPS 3Y-6.76%
EPS 5Y
EPS Q2Q%
EPS Next Y35.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.72%
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