MORGAN STANLEY (MS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MS - US6174464486 - Common Stock
186.32 USD
+1.64 (+0.89%)
186.32 USD
0 (0%)
Overall MS gets a fundamental rating of 3 out of 10. We evaluated MS against 235 industry peers in the Capital Markets industry. MS may be in some trouble as it scores bad on both profitability and health. MS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MS had positive earnings in the past year.
In the past year MS has reported a negative cash flow from operations.
Each year in the past 5 years MS has been profitable.
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
With a Return On Assets value of 1.14%, MS is not doing good in the industry: 63.40% of the companies in the same industry are doing better.
MS has a better Return On Equity (14.15%) than 74.89% 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 62.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MS is significantly below the industry average of 7.14%.
The last Return On Invested Capital (1.46%) for MS is above the 3 year average (1.17%), which is a sign of increasing profitability.
| 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
MS's Profit Margin of 13.32% is in line compared to the rest of the industry. MS outperforms 46.81% of its industry peers.
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 42.98% 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 54.99%, MS is in the better half of the industry, outperforming 67.66% 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 | 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
MS has less shares outstanding than it did 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 -0.06, we must say that MS is in the distress zone and has some risk of bankruptcy.
MS has a worse Altman-Z score (-0.06) than 74.04% of its industry peers.
MS has a Debt/Equity ratio of 7.41. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 7.41, MS is not doing good in the industry: 85.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.06 |
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 81.28% 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 81.28% 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.
The Earnings Per Share has been growing by 8.88% on average over the past years. This is quite good.
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 Y28.7%
EPS Next 2Y17.07%
EPS Next 3Y15.27%
EPS Next 5Y12.43%
Revenue Next Year16.56%
Revenue Next 2Y11.03%
Revenue Next 3Y9.26%
Revenue Next 5Y7.2%
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
The Price/Earnings ratio is 19.11, which indicates a rather expensive current valuation of MS.
The rest of the industry has a similar Price/Earnings ratio as MS.
The average S&P500 Price/Earnings ratio is at 27.19. MS is valued slightly cheaper when compared to this.
MS is valuated rather expensively with a Price/Forward Earnings ratio of 17.12.
MS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.88. MS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 17.12 |
4.2 Price Multiples
71.06% 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 | 20.68 |
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 15.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)2.15
EPS Next 2Y17.07%
EPS Next 3Y15.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, MS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.39, MS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, MS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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.
Dividend Growth(5Y)18.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MS pays out 41.70% 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.
DP41.7%
EPS Next 2Y17.07%
EPS Next 3Y15.27%
186.32
+1.64 (+0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.56%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change-0.05%
Market Cap296.44B
Revenue(TTM)116.83B
Net Income(TTM)15.56B
Analysts74.55
Price Target176.46 (-5.29%)
Short Float %1.3%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend3.8
Dividend Growth(5Y)18.94%
DP41.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)2.78%
PT rev (3m)18.78%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)13.85%
EPS NY rev (1m)0.04%
EPS NY rev (3m)11.48%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)5.44%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)4.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 17.12 | ||
| P/S | 2.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.7 | ||
| P/tB | 3.4 | ||
| EV/EBITDA | 20.68 |
EPS(TTM)9.75
EY5.23%
EPS(NY)10.88
Fwd EY5.84%
FCF(TTM)-4.24
FCFYN/A
OCF(TTM)-2.31
OCFYN/A
SpS73.43
BVpS69.12
TBVpS54.77
PEG (NY)0.67
PEG (5Y)2.15
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 | -0.06 |
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 Y28.7%
EPS Next 2Y17.07%
EPS Next 3Y15.27%
EPS Next 5Y12.43%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%18.47%
Revenue Next Year16.56%
Revenue Next 2Y11.03%
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 of MORGAN STANLEY (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.
What is the valuation of MORGAN STANLEY based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MORGAN STANLEY (MS) is 19.11 and the Price/Book (PB) ratio is 2.7.
What is the expected EPS growth for MORGAN STANLEY (MS) stock?
The Earnings per Share (EPS) of MORGAN STANLEY (MS) is expected to grow by 28.7% in the next year.