MORGAN STANLEY (MS) Stock Fundamental Analysis
NYSE:MS - US6174464486 - Common Stock
144.04 USD
-0.08 (-0.06%)
144.04 USD
0 (0%)
MS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 237 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
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.
In multiple years MS reported negative operating cash flow during the last 5 years.
1.2 Ratios
MS's Return On Assets of 1.04% is on the low side compared to the rest of the industry. MS is outperformed by 64.13% of its industry peers.
Looking at the Return On Equity, with a value of 13.07%, MS is in the better half of the industry, outperforming 73.00% of the companies in the same industry.
MS has a Return On Invested Capital of 1.34%. This is in the lower half of the industry: MS underperforms 68.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MS is significantly below the industry average of 7.69%.
The last Return On Invested Capital (1.34%) for MS is above the 3 year average (1.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 13.07% | ||
| ROIC | 1.34% |
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 has a Profit Margin (12.51%) which is comparable to the rest of the industry.
MS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 17.07%, MS is not doing good in the industry: 62.45% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MS has declined.
MS has a better Gross Margin (54.42%) than 64.98% of its industry peers.
MS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.07% | ||
| PM (TTM) | 12.51% | ||
| GM | 54.42% |
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 -0.10, we must say that MS is in the distress zone and has some risk of bankruptcy.
MS has a Altman-Z score of -0.10. This is in the lower half of the industry: MS underperforms 75.11% of its industry peers.
MS has a Debt/Equity ratio of 7.45. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 7.45, MS is not doing good in the industry: 87.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.1 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.29 indicates that MS may have some problems paying its short term obligations.
The Current ratio of MS (0.29) is worse than 84.39% of its industry peers.
MS has a Quick Ratio of 0.29. 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 Quick ratio value of 0.29, MS is not doing good in the industry: 84.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.19% over the past year.
Measured over the past years, MS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.88% on average per year.
The Revenue has grown by 10.36% in the past year. This is quite good.
MS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.79% yearly.
EPS 1Y (TTM)42.19%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%17.03%
Revenue 1Y (TTM)10.36%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%11.81%
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 10.26% on average per year.
The Revenue is expected to grow by 6.32% on average over the next years.
EPS Next Y11.7%
EPS Next 2Y10.26%
EPS Next 3Y10.52%
EPS Next 5Y10.26%
Revenue Next Year11.63%
Revenue Next 2Y8%
Revenue Next 3Y6.71%
Revenue Next 5Y6.32%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 16.31, MS is valued correctly.
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 (26.76), we can say MS is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.92 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 rather cheap valuation when compared to the S&P500 average which is at 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 14.92 |
4.2 Price Multiples
73.42% 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 | 19.41 |
4.3 Compensation for Growth
MS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.39
PEG (5Y)1.84
EPS Next 2Y10.26%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 2.69%. Purely for dividend investing, there may be better candidates out there.
MS's Dividend Yield is comparable with the industry average which is at 7.61.
Compared to an average S&P500 Dividend Yield of 2.36, MS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
On average, the dividend of MS grows each year by 18.94%, which is quite nice.
MS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)18.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
45.08% 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.
DP45.08%
EPS Next 2Y10.26%
EPS Next 3Y10.52%
144.04
-0.08 (-0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners63.02%
Inst Owner Change-1.87%
Ins Owners0.2%
Ins Owner Change0.01%
Market Cap229.94B
Analysts73.13
Price Target146.16 (1.47%)
Short Float %1.2%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend3.8
Dividend Growth(5Y)18.94%
DP45.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.13%
Min EPS beat(2)5.77%
Max EPS beat(2)14.48%
EPS beat(4)4
Avg EPS beat(4)15.64%
Min EPS beat(4)5.77%
Max EPS beat(4)27.07%
EPS beat(8)7
Avg EPS beat(8)10.97%
EPS beat(12)10
Avg EPS beat(12)7.76%
EPS beat(16)13
Avg EPS beat(16)7.12%
Revenue beat(2)2
Avg Revenue beat(2)2.67%
Min Revenue beat(2)1.43%
Max Revenue beat(2)3.91%
Revenue beat(4)4
Avg Revenue beat(4)3.45%
Min Revenue beat(4)1.43%
Max Revenue beat(4)4.78%
Revenue beat(8)6
Avg Revenue beat(8)1.67%
Revenue beat(12)9
Avg Revenue beat(12)12.16%
Revenue beat(16)12
Avg Revenue beat(16)9.8%
PT rev (1m)1.09%
PT rev (3m)13.44%
EPS NQ rev (1m)3.28%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)3.1%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)2.44%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 14.92 | ||
| P/S | 2.03 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.13 | ||
| P/tB | 2.7 | ||
| EV/EBITDA | 19.41 |
EPS(TTM)8.83
EY6.13%
EPS(NY)9.65
Fwd EY6.7%
FCF(TTM)-13.12
FCFYN/A
OCF(TTM)-11.07
OCFYN/A
SpS70.8
BVpS67.77
TBVpS53.41
PEG (NY)1.39
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 13.07% | ||
| ROCE | 3.03% | ||
| ROIC | 1.34% | ||
| ROICexc | 1.49% | ||
| ROICexgc | 1.57% | ||
| OM | 17.07% | ||
| PM (TTM) | 12.51% | ||
| GM | 54.42% | ||
| 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%
ROICexcg growth 3Y-7.03%
ROICexcg 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-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 33.05 | ||
| Cap/Depr | 64.3% | ||
| Cap/Sales | 2.89% | ||
| Interest Coverage | 0.4 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | -0.1 |
F-Score5
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)42.19%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%17.03%
EPS Next Y11.7%
EPS Next 2Y10.26%
EPS Next 3Y10.52%
EPS Next 5Y10.26%
Revenue 1Y (TTM)10.36%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%11.81%
Revenue Next Year11.63%
Revenue Next 2Y8%
Revenue Next 3Y6.71%
Revenue Next 5Y6.32%
EBIT growth 1Y35.01%
EBIT growth 3Y-3.64%
EBIT growth 5Y9.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y52.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y56.99%
OCF growth 3Y-65.77%
OCF growth 5Y-49.33%