MORGAN STANLEY (MS) Stock Fundamental Analysis
NYSE:MS - New York Stock Exchange, Inc. - US6174464486 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to MS. MS was compared to 232 industry peers in the Capital Markets industry. MS may be in some trouble as it scores bad on both profitability and health. MS is quite expensive at the moment. It does show 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.
Each year in the past 5 years MS has 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 has a worse Return On Assets (1.05%) than 65.52% of its industry peers.
MS's Return On Equity of 12.82% is fine compared to the rest of the industry. MS outperforms 68.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.35%, MS is doing worse than 68.97% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MS is significantly below the industry average of 7.88%.
The 3 year average ROIC (1.17%) for MS is below the current ROIC(1.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.82% | ||
| ROIC | 1.35% |
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 of 12.43%. This is comparable to the rest of the industry: MS outperforms 46.55% of its industry peers.
MS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 17.02%, MS is not doing good in the industry: 63.79% 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 Gross Margin of 54.40%. This is in the better half of the industry: MS outperforms 63.36% of its industry peers.
In the last couple of years the Gross Margin of MS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.02% | ||
| PM (TTM) | 12.43% | ||
| GM | 54.4% |
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.
MS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.12, we must say that MS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MS (-0.12) is worse than 77.16% of its industry peers.
A Debt/Equity ratio of 7.22 is on the high side and indicates that MS has dependencies on debt financing.
MS's Debt to Equity ratio of 7.22 is on the low side compared to the rest of the industry. MS is outperformed by 87.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.12 |
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: 85.78% 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's Quick ratio of 0.26 is on the low side compared to the rest of the industry. MS is outperformed by 85.78% 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 has grown by an impressive 51.33% over the past year.
MS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.88% yearly.
Looking at the last year, MS shows a quite strong growth in Revenue. The Revenue has grown by 10.79% in the last year.
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)51.33%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%28.71%
Revenue 1Y (TTM)10.79%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%17.2%
3.2 Future
The Earnings Per Share is expected to grow by 6.26% on average over the next years.
The Revenue is expected to grow by 3.10% on average over the next years.
EPS Next Y12.41%
EPS Next 2Y9.97%
EPS Next 3Y10.25%
EPS Next 5Y6.26%
Revenue Next Year9.06%
Revenue Next 2Y6.52%
Revenue Next 3Y5.46%
Revenue Next 5Y3.1%
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 decreasing.
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 15.20, MS is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of MS is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MS to the average of the S&P500 Index (26.31), we can say MS is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.49, which indicates a correct valuation of MS.
MS's Price/Forward Earnings is on the same level as the industry average.
MS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MS is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.85 |
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)1.22
PEG (5Y)1.71
EPS Next 2Y9.97%
EPS Next 3Y10.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.83%, MS has a reasonable but not impressive dividend return.
MS's Dividend Yield is comparable with the industry average which is at 8.22.
MS's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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
MS pays out 45.71% 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.
DP45.71%
EPS Next 2Y9.97%
EPS Next 3Y10.25%
129.49
-2.43 (-1.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.19%
Inst Owner Change0.63%
Ins Owners0.19%
Ins Owner Change-0.02%
Market Cap207.74B
Analysts72.9
Price Target128.84 (-0.5%)
Short Float %1.39%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend3.8
Dividend Growth(5Y)18.94%
DP45.71%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.77%
Min EPS beat(2)14.48%
Max EPS beat(2)27.07%
EPS beat(4)4
Avg EPS beat(4)16.07%
Min EPS beat(4)7.49%
Max EPS beat(4)27.07%
EPS beat(8)7
Avg EPS beat(8)10.85%
EPS beat(12)9
Avg EPS beat(12)6.29%
EPS beat(16)13
Avg EPS beat(16)7.3%
Revenue beat(2)2
Avg Revenue beat(2)4.34%
Min Revenue beat(2)3.91%
Max Revenue beat(2)4.78%
Revenue beat(4)4
Avg Revenue beat(4)3.58%
Min Revenue beat(4)1.95%
Max Revenue beat(4)4.78%
Revenue beat(8)5
Avg Revenue beat(8)1.47%
Revenue beat(12)9
Avg Revenue beat(12)12.39%
Revenue beat(16)12
Avg Revenue beat(16)10.02%
PT rev (1m)-0.74%
PT rev (3m)-8.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.84%
EPS NY rev (1m)0.25%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 13.49 | ||
| P/S | 1.89 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.94 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 18.85 |
EPS(TTM)8.52
EY6.58%
EPS(NY)9.6
Fwd EY7.42%
FCF(TTM)-18.91
FCFYN/A
OCF(TTM)-16.81
OCFYN/A
SpS68.66
BVpS66.58
TBVpS52.23
PEG (NY)1.22
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.82% | ||
| ROCE | 3.09% | ||
| ROIC | 1.35% | ||
| ROICexc | 1.48% | ||
| ROICexgc | 1.55% | ||
| OM | 17.02% | ||
| PM (TTM) | 12.43% | ||
| GM | 54.4% | ||
| 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)1.52%
ROCE(3y)2.71%
ROCE(5y)2.94%
ROICexcg growth 3Y-6.85%
ROICexcg growth 5Y1.53%
ROICexc growth 3Y-6.8%
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 | 7.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 32.42 | ||
| Cap/Depr | 66.5% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 0.4 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | -0.12 |
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)51.33%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%28.71%
EPS Next Y12.41%
EPS Next 2Y9.97%
EPS Next 3Y10.25%
EPS Next 5Y6.26%
Revenue 1Y (TTM)10.79%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%17.2%
Revenue Next Year9.06%
Revenue Next 2Y6.52%
Revenue Next 3Y5.46%
Revenue Next 5Y3.1%
EBIT growth 1Y43.88%
EBIT growth 3Y-3.64%
EBIT growth 5Y9.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-54.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-63.47%
OCF growth 3Y-65.77%
OCF growth 5Y-49.33%