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MORGAN STANLEY (MS) Stock Fundamental Analysis

NYSE:MS - New York Stock Exchange, Inc. - US6174464486 - Common Stock - Currency: USD

144.63  -3.88 (-2.61%)

After market: 144.63 0 (0%)

Fundamental Rating

3

Taking everything into account, MS scores 3 out of 10 in our fundamental rating. MS was compared to 237 industry peers in the Capital Markets industry. Both the profitability and financial health of MS have multiple concerns. MS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

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.
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.
MS Yearly Net Income VS EBIT VS OCF VS FCFMS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B -20B 40B

1.2 Ratios

The Return On Assets of MS (1.05%) is worse than 64.98% of its industry peers.
Looking at the Return On Equity, with a value of 12.82%, MS is in the better half of the industry, outperforming 70.04% of the companies in the same industry.
MS has a Return On Invested Capital of 1.35%. This is in the lower half of the industry: MS underperforms 67.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MS is significantly below the industry average of 7.85%.
The last Return On Invested Capital (1.35%) for MS is above the 3 year average (1.17%), which is a sign of increasing profitability.
Industry RankSector 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%
MS Yearly ROA, ROE, ROICMS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

MS's Profit Margin of 12.43% is in line compared to the rest of the industry. MS outperforms 45.15% of its industry peers.
In the last couple of years the Profit Margin of MS has declined.
MS has a Operating Margin of 17.02%. This is in the lower half of the industry: MS underperforms 63.29% of its industry peers.
In the last couple of years the Operating Margin of MS has declined.
With a decent Gross Margin value of 54.40%, MS is doing good in the industry, outperforming 64.98% of the companies in the same industry.
In the last couple of years the Gross Margin of MS has declined.
Industry RankSector 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%
MS Yearly Profit, Operating, Gross MarginsMS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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0

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
The debt/assets ratio for MS is higher compared to a year ago.
MS Yearly Shares OutstandingMS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
MS Yearly Total Debt VS Total AssetsMS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B 800B 1T

2.2 Solvency

MS has an Altman-Z score of -0.10. This is a bad value and indicates that MS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.10, MS is not doing good in the industry: 75.95% of the companies in the same industry are doing better.
A Debt/Equity ratio of 7.22 is on the high side and indicates that MS has dependencies on debt financing.
With a Debt to Equity ratio value of 7.22, MS is not doing good in the industry: 87.76% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 7.22
Debt/FCF N/A
Altman-Z -0.1
ROIC/WACCN/A
WACCN/A
MS Yearly LT Debt VS Equity VS FCFMS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100B 200B

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 Current ratio of 0.26. This is amonst the worse of the industry: MS underperforms 84.39% of its industry peers.
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 84.39% of its industry peers.
Industry RankSector Rank
Current Ratio 0.26
Quick Ratio 0.26
MS Yearly Current Assets VS Current LiabilitesMS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B

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5

3. Growth

3.1 Past

MS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.19%, which is quite impressive.
The Earnings Per Share has been growing by 8.88% on average over the past years. This is quite good.
MS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.36%.
The Revenue has been growing by 14.79% on average over the past years. This is quite good.
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

MS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.26% yearly.
The Revenue is expected to grow by 3.10% on average over the next years.
EPS Next Y11.7%
EPS Next 2Y10.26%
EPS Next 3Y10.52%
EPS Next 5Y6.26%
Revenue Next Year11.63%
Revenue Next 2Y8%
Revenue Next 3Y6.71%
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.
MS Yearly Revenue VS EstimatesMS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B 80B 100B
MS Yearly EPS VS EstimatesMS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 16.38 indicates a correct valuation of MS.
The rest of the industry has a similar Price/Earnings ratio as MS.
MS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.93.
A Price/Forward Earnings ratio of 14.98 indicates a correct valuation of MS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.31, MS is valued rather cheaply.
Industry RankSector Rank
PE 16.38
Fwd PE 14.98
MS Price Earnings VS Forward Price EarningsMS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MS is valued a bit cheaper than 73.84% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 19.93
MS Per share dataMS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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)1.4
PEG (5Y)1.85
EPS Next 2Y10.26%
EPS Next 3Y10.52%

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4

5. Dividend

5.1 Amount

MS has a Yearly Dividend Yield of 2.84%.
MS's Dividend Yield is comparable with the industry average which is at 7.82.
MS's Dividend Yield is comparable with the S&P500 average which is at 2.39.
Industry RankSector Rank
Dividend Yield 2.84%

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
MS Yearly Dividends per shareMS Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

45.71% 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.
DP45.71%
EPS Next 2Y10.26%
EPS Next 3Y10.52%
MS Yearly Income VS Free CF VS DividendMS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B -20B
MS Dividend Payout.MS Dividend Payout, showing the Payout Ratio.MS Dividend Payout.PayoutRetained Earnings

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MORGAN STANLEY

NYSE:MS (8/15/2025, 5:05:00 PM)

After market: 144.63 0 (0%)

144.63

-3.88 (-2.61%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)07-16 2025-07-16/bmo
Earnings (Next)10-15 2025-10-15/bmo
Inst Owners63.02%
Inst Owner Change-0.01%
Ins Owners0.2%
Ins Owner Change0.01%
Market Cap231.12B
Analysts73.13
Price Target146.16 (1.06%)
Short Float %1.23%
Short Ratio2.68
Dividend
Industry RankSector Rank
Dividend Yield 2.84%
Yearly Dividend3.8
Dividend Growth(5Y)18.94%
DP45.71%
Div Incr Years0
Div Non Decr Years0
Ex-Date07-31 2025-07-31 (1)
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)11.68%
PT rev (3m)12.61%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-5.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)2.44%
Revenue NY rev (3m)2.37%
Valuation
Industry RankSector Rank
PE 16.38
Fwd PE 14.98
P/S 2.1
P/FCF N/A
P/OCF N/A
P/B 2.16
P/tB 2.76
EV/EBITDA 19.93
EPS(TTM)8.83
EY6.11%
EPS(NY)9.65
Fwd EY6.67%
FCF(TTM)-18.98
FCFYN/A
OCF(TTM)-16.88
OCFYN/A
SpS68.93
BVpS66.84
TBVpS52.44
PEG (NY)1.4
PEG (5Y)1.85
Profitability
Industry RankSector 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)1.53%
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 RankSector 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 -0.1
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 5Y6.26%
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 5Y3.1%
EBIT growth 1Y40.56%
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%