MORGAN STANLEY (MS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MS - US6174464486 - Common Stock
158.17 USD
-0.53 (-0.33%)
158.25 USD
+0.08 (+0.05%)
We assign a fundamental rating of 3 out of 10 to MS. MS was compared to 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
MS had positive earnings in the past year.
MS had a negative operating cash flow in the past year.
In the past 5 years MS has always 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
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 Return On Equity of 14.15%. This is in the better half of the industry: MS outperforms 76.37% of its industry peers.
With a Return On Invested Capital value of 1.46%, MS is not doing good in the industry: 64.13% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for MS is significantly below the industry average of 7.11%.
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
With a Profit Margin value of 13.32%, MS perfoms like the industry average, outperforming 46.41% of the companies in the same industry.
In the last couple of years the Profit Margin of MS has declined.
With a Operating Margin value of 18.06%, MS perfoms like the industry average, outperforming 43.04% of the companies in the same industry.
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.
MS's Gross Margin has declined in the last couple of years.
| 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
Compared to 1 year ago, MS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.08, we must say that MS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.08, MS is not doing good in the industry: 76.37% of the companies in the same industry are doing better.
A Debt/Equity ratio of 7.41 is on the high side and indicates that MS has dependencies on debt financing.
MS has a Debt to Equity ratio of 7.41. This is amonst the worse of the industry: MS underperforms 87.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.08 |
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 Quick ratio of 0.30. This is amonst the worse of the industry: MS underperforms 81.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.31% over the past year.
The Earnings Per Share has been growing by 8.88% on average over the past years. This is quite good.
MS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.08%.
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
Based on estimates for the next years, MS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.43% on average per year.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y28.4%
EPS Next 2Y16.67%
EPS Next 3Y15.06%
EPS Next 5Y12.43%
Revenue Next Year16.5%
Revenue Next 2Y10.88%
Revenue Next 3Y9.15%
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
With a Price/Earnings ratio of 16.22, MS is valued correctly.
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 25.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.63, the valuation of MS can be described as correct.
MS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.46. MS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
71.73% 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 | 19.11 |
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 15.06% in the coming years.
PEG (NY)0.57
PEG (5Y)1.83
EPS Next 2Y16.67%
EPS Next 3Y15.06%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 6.45%, which is a nice return.
Compared to an average industry Dividend Yield of 8.50, MS has a dividend in line with its industry peers.
MS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
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 2Y16.67%
EPS Next 3Y15.06%
158.17
-0.53 (-0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.51%
Inst Owner Change0.23%
Ins Owners0.2%
Ins Owner Change-4.23%
Market Cap251.65B
Revenue(TTM)116.83B
Net Income(TTM)15.56B
Analysts73.33
Price Target170.61 (7.86%)
Short Float %1.17%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
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)12.79%
PT rev (3m)16.73%
EPS NQ rev (1m)10.39%
EPS NQ rev (3m)13.16%
EPS NY rev (1m)11.23%
EPS NY rev (3m)14.96%
Revenue NQ rev (1m)3.36%
Revenue NQ rev (3m)5.18%
Revenue NY rev (1m)4.02%
Revenue NY rev (3m)4.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | 14.63 | ||
| P/S | 2.15 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.29 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 19.11 |
EPS(TTM)9.75
EY6.16%
EPS(NY)10.81
Fwd EY6.83%
FCF(TTM)-4.24
FCFYN/A
OCF(TTM)-2.31
OCFYN/A
SpS73.43
BVpS69.12
TBVpS54.77
PEG (NY)0.57
PEG (5Y)1.83
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 | -0.08 |
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 Y28.4%
EPS Next 2Y16.67%
EPS Next 3Y15.06%
EPS Next 5Y12.43%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%18.47%
Revenue Next Year16.5%
Revenue Next 2Y10.88%
Revenue Next 3Y9.15%
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 6 / 10 and the dividend payout ratio is 41.7%.