MORGAN STANLEY (MS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MS - US6174464486 - Common Stock
179.94 USD
-1.93 (-1.06%)
180.25 USD
+0.31 (+0.17%)
MS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 235 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
MS had positive earnings in the past year.
In the past year MS has reported a negative cash flow from operations.
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
With a Return On Assets value of 1.14%, MS is not doing good in the industry: 63.83% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 14.15%, MS is in the better half of the industry, outperforming 75.32% of the companies in the same industry.
With a Return On Invested Capital value of 1.46%, MS is not doing good in the industry: 62.98% 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 7.07%.
The 3 year average ROIC (1.17%) for MS is below the current ROIC(1.46%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 13.32%, MS is in line with its industry, outperforming 46.81% of the companies in the same industry.
In the last couple of years the Profit Margin of MS has declined.
Looking at the Operating Margin, with a value of 18.06%, MS is in line with its industry, outperforming 43.40% of the companies in the same industry.
In the last couple of years the Operating Margin of MS has declined.
MS's Gross Margin of 54.99% is fine compared to the rest of the industry. MS outperforms 67.23% of its industry peers.
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
The number of shares outstanding for MS has been reduced compared to 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
MS has an Altman-Z score of -0.06. This is a bad value and indicates that MS is not financially healthy and even has some risk of bankruptcy.
MS's Altman-Z score of -0.06 is on the low side compared to the rest of the industry. MS is outperformed by 75.74% 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.
MS has a worse Debt to Equity ratio (7.41) than 87.66% of its industry peers.
| 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.
Looking at the Current ratio, with a value of 0.30, MS is doing worse than 82.13% of the companies in the same industry.
A Quick Ratio of 0.30 indicates that MS may have some problems paying its short term obligations.
The Quick ratio of MS (0.30) is worse than 82.13% 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.
MS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.88% yearly.
MS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.08%.
The Revenue has been growing by 14.79% on average over the past years. This is quite good.
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
MS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.43% yearly.
Based on estimates for the next years, MS will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
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.
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
Based on the Price/Earnings ratio of 18.46, the valuation of MS can be described as rather expensive.
MS's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MS to the average of the S&P500 Index (26.84), we can say MS is valued slightly cheaper.
MS is valuated correctly with a Price/Forward Earnings ratio of 16.53.
MS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.40. MS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
70.64% 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 | 20.39 |
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 15.27% in the coming years.
PEG (NY)0.64
PEG (5Y)2.08
EPS Next 2Y17.07%
EPS Next 3Y15.27%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 2.17%.
Compared to an average industry Dividend Yield of 6.65, MS has a dividend in line with its industry peers.
MS's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of MS is nicely growing with an annual growth rate of 18.94%!
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
41.70% of the earnings are spent on dividend by MS. This is a bit on the high side, but may be sustainable.
The dividend of MS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.7%
EPS Next 2Y17.07%
EPS Next 3Y15.27%
179.94
-1.93 (-1.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.54%
Inst Owner Change0.3%
Ins Owners0.19%
Ins Owner Change-0.05%
Market Cap286.28B
Revenue(TTM)116.83B
Net Income(TTM)15.56B
Analysts74.55
Price Target176.46 (-1.93%)
Short Float %1.3%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)2.78%
PT rev (3m)18.78%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)13.85%
EPS NY rev (1m)0.23%
EPS NY rev (3m)11.48%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)5.44%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)4.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 16.53 | ||
| P/S | 2.45 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.6 | ||
| P/tB | 3.29 | ||
| EV/EBITDA | 20.39 |
EPS(TTM)9.75
EY5.42%
EPS(NY)10.88
Fwd EY6.05%
FCF(TTM)-4.24
FCFYN/A
OCF(TTM)-2.31
OCFYN/A
SpS73.43
BVpS69.12
TBVpS54.77
PEG (NY)0.64
PEG (5Y)2.08
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 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 4 / 10 and the dividend payout ratio is 41.7%.