MORGAN STANLEY (MS)
US6174464486 - Common Stock
Overall MS gets a fundamental rating of 3 out of 10. We evaluated MS against 209 industry peers in the Capital Markets industry. Both the profitability and financial health of MS have multiple concerns. 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.
MS had positive earnings in each of the past 5 years.
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
The Return On Assets of MS (0.71%) is worse than 71.01% of its industry peers.
The Return On Equity of MS (8.61%) is comparable to the rest of the industry.
MS's Return On Invested Capital of 1.00% is on the low side compared to the rest of the industry. MS is outperformed by 77.78% of its industry peers.
MS had an Average Return On Invested Capital over the past 3 years of 1.27%. This is significantly below the industry average of 8.35%.
| Industry Rank | Sector 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
MS has a Profit Margin of 8.87%. This is in the lower half of the industry: MS underperforms 66.67% of its industry peers.
MS's Profit Margin has declined in the last couple of years.
The Operating Margin of MS (12.88%) is worse than 72.95% 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 52.67%, MS is in line with its industry, outperforming 53.62% of the companies in the same industry.
MS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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
MS has an Altman-Z score of -0.17. This is a bad value and indicates that MS is not financially healthy and even has some risk of bankruptcy.
MS has a worse Altman-Z score (-0.17) than 85.02% 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 87.92% of its industry peers.
| Industry Rank | Sector 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.
MS has a worse Current ratio (0.26) than 82.13% of its industry peers.
A Quick Ratio of 0.26 indicates that MS may have some problems paying its short term obligations.
MS has a Quick ratio of 0.26. This is amonst the worse of the industry: MS underperforms 82.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The earnings per share for MS have decreased strongly by -13.52% in the last year.
Measured over the past 5 years, MS shows a small growth in Earnings Per Share. The EPS has been growing by 2.60% on average per year.
MS shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.89%.
Measured over the past years, MS shows a quite strong growth in Revenue. The Revenue has been growing by 13.89% on average per year.
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. Valuation
4.1 Price/Earnings Ratio
MS is valuated rather expensively with a Price/Earnings ratio of 17.09.
61.35% of the companies in the same industry are cheaper than MS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MS to the average of the S&P500 Index (24.80), we can say MS is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.76 indicates a correct valuation of MS.
MS's Price/Forward Earnings ratio is in line with the industry average.
MS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 13.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MS indicates a somewhat cheap valuation: MS is cheaper than 63.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.35 |
4.3 Compensation for Growth
The 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)0.71
PEG (5Y)6.57
EPS Next 2Y19.39%
EPS Next 3Y16.92%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
MS's Dividend Yield is comparable with the industry average which is at 7.52.
Compared to an average S&P500 Dividend Yield of 2.40, MS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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
67.56% of the earnings are spent on dividend by MS. This is not a sustainable payout ratio.
The dividend of MS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP67.56%
EPS Next 2Y19.39%
EPS Next 3Y16.92%
MORGAN STANLEY
NYSE:MS (4/19/2024, 8:41:10 AM)
90.74
+0.48 (+0.53%)
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 Cap148.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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)
Avg EPS beat(12)
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)
Avg Revenue beat(4)
Min 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 | 17.09 | ||
| Fwd PE | 13.76 | ||
| 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)0.71
PEG (5Y)6.57
Profitability
| Industry Rank | Sector 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 Rank | Sector 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