MORGAN STANLEY (MS)

US6174464486 - Common Stock

93.85  +0.09 (+0.1%)

After market: 93.15 -0.7 (-0.75%)

Fundamental Rating

3

MS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 210 industry peers in the Capital Markets industry. Both the profitability and financial health of MS have multiple concerns. MS is not valued too expensively and it also shows a decent growth rate.



2

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.
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

Looking at the Return On Assets, with a value of 0.71%, MS is doing worse than 71.15% of the companies in the same industry.
MS's Return On Equity of 8.61% is in line compared to the rest of the industry. MS outperforms 45.19% of its industry peers.
MS has a Return On Invested Capital of 1.00%. This is in the lower half of the industry: MS underperforms 77.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MS is significantly below the industry average of 8.34%.
Industry RankSector Rank
ROA 0.71%
ROE 8.61%
ROIC 1%
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

The Profit Margin of MS (8.87%) is worse than 66.83% of its industry peers.
In the last couple of years the Profit Margin of MS has declined.
Looking at the Operating Margin, with a value of 12.88%, MS is doing worse than 73.08% 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 (52.67%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MS has declined.
Industry RankSector Rank
OM 12.88%
PM (TTM) 8.87%
GM 52.67%
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%

1

2. Health

2.1 Basic Checks

The number of shares outstanding for MS has been reduced compared to 1 year ago.
The number of shares outstanding for MS has been reduced compared to 5 years ago.
Compared to 1 year ago, MS has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of -0.17, we must say that MS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MS (-0.17) is worse than 85.10% 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 has a worse Debt to Equity ratio (6.97) than 87.98% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.97
Debt/FCF N/A
Altman-Z -0.17
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

MS has a Current Ratio of 0.26. 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 Current ratio value of 0.26, MS is not doing good in the industry: 82.21% of the companies in the same industry are doing better.
MS has a Quick Ratio of 0.26. This is a bad value and indicates that MS is not financially healthy enough and could expect problems in meeting its short term obligations.
MS has a worse Quick ratio (0.26) than 82.21% of its industry peers.
Industry RankSector Rank
Current Ratio 0.26
Quick Ratio 0.26

5

3. Growth

3.1 Past

MS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.52%.
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 45.89%.
MS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.89% yearly.
EPS 1Y (TTM)-13.52%
EPS 3Y-6.76%
EPS 5Y2.6%
EPS growth Q2Q-21.43%
Revenue 1Y (TTM)45.89%
Revenue growth 3Y22.28%
Revenue growth 5Y13.89%
Revenue growth Q2Q27.44%

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.
The Revenue is expected to grow by 3.26% on average over the next years.
EPS Next Y24.22%
EPS Next 2Y19.39%
EPS Next 3Y16.92%
EPS Next 5Y10.33%
Revenue Next Year4.98%
Revenue Next 2Y5.2%
Revenue Next 3Y4.99%
Revenue Next 5Y3.26%

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.
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

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.67, MS is valued on the expensive side.
Based on the Price/Earnings ratio, MS is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 25.25, MS is valued a bit cheaper.
MS is valuated correctly with a Price/Forward Earnings ratio of 14.23.
The rest of the industry has a similar Price/Forward Earnings ratio as MS.
MS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.67.
Industry RankSector Rank
PE 17.67
Fwd PE 14.23

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MS is valued a bit cheaper than the industry average as 63.94% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 19.7

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 16.92% in the coming years.
PEG (NY)0.73
PEG (5Y)6.79
EPS Next 2Y19.39%
EPS Next 3Y16.92%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.63%, MS has a reasonable but not impressive dividend return.
MS's Dividend Yield is comparable with the industry average which is at 7.77.
Compared to an average S&P500 Dividend Yield of 2.45, MS pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.63%

5.2 History

The dividend of MS is nicely growing with an annual growth rate of 20.72%!
MS has paid a dividend for at least 10 years, which is a reliable track record.
MS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.72%
Div Incr Years10
Div Non Decr Years13

5.3 Sustainability

MS pays out 67.56% 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.
DP67.56%
EPS Next 2Y19.39%
EPS Next 3Y16.92%

MORGAN STANLEY

NYSE:MS (4/24/2024, 7:17:47 PM)

After market: 93.15 -0.7 (-0.75%)

93.85

+0.09 (+0.1%)

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 Cap153.47B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.63%
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)
Max EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 RankSector Rank
PE 17.67
Fwd PE 14.23
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)0.73
PEG (5Y)6.79
Profitability
Industry RankSector Rank
ROA 0.71%
ROE 8.61%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.88%
PM (TTM) 8.87%
GM 52.67%
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 RankSector Rank
Debt/Equity 6.97
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.26
Quick Ratio 0.26
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)
Growth
EPS 1Y (TTM)-13.52%
EPS 3Y-6.76%
EPS 5Y
EPS growth Q2Q
EPS Next Y24.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)45.89%
Revenue growth 3Y22.28%
Revenue growth 5Y
Revenue growth 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