MORGAN STANLEY (MS)
US6174464486 - Common Stock
We assign a fundamental rating of 3 out of 10 to MS. MS was compared to 222 industry peers in the Capital Markets industry. MS may be in some trouble as it scores bad on both profitability and health. MS has a decent growth rate and is not valued too expensively.
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.
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
Looking at the Return On Assets, with a value of 0.73%, MS is doing worse than 68.98% of the companies in the same industry.
MS's Return On Equity of 9.03% is in line compared to the rest of the industry. MS outperforms 46.76% of its industry peers.
The Return On Invested Capital of MS (1.02%) is worse than 76.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MS is significantly below the industry average of 7.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.73% | ||
| ROE | 9.03% | ||
| ROIC | 1.02% |
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 worse Profit Margin (9.01%) than 65.74% of its industry peers.
In the last couple of years the Profit Margin of MS has declined.
With a Operating Margin value of 13.10%, MS is not doing good in the industry: 68.06% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MS has declined.
The Gross Margin of MS (51.54%) is comparable to the rest of the industry.
MS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.1% | ||
| PM (TTM) | 9.01% | ||
| GM | 51.54% |
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.
MS has less 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 -0.16, we must say that MS is in the distress zone and has some risk of bankruptcy.
MS's Altman-Z score of -0.16 is on the low side compared to the rest of the industry. MS is outperformed by 83.80% of its industry peers.
A Debt/Equity ratio of 7.23 is on the high side and indicates that MS has dependencies on debt financing.
The Debt to Equity ratio of MS (7.23) is worse than 88.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.27 indicates that MS may have some problems paying its short term obligations.
The Current ratio of MS (0.27) is worse than 83.33% of its industry peers.
MS has a Quick Ratio of 0.27. 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 0.27 is on the low side compared to the rest of the industry. MS is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.52% over the past year.
MS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.60% yearly.
Looking at the last year, MS shows a very strong growth in Revenue. The Revenue has grown by 23.72%.
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)9.52%
EPS 3Y-6.76%
EPS 5Y2.6%
EPS Q2Q%46.77%
Revenue 1Y (TTM)23.72%
Revenue growth 3Y22.28%
Revenue growth 5Y13.89%
Sales Q2Q%11.61%
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 3.45% on average over the next years.
EPS Next Y33.24%
EPS Next 2Y21.19%
EPS Next 3Y17.44%
EPS Next 5Y10.33%
Revenue Next Year7.02%
Revenue Next 2Y6.01%
Revenue Next 3Y5.34%
Revenue Next 5Y3.45%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 16.78, MS is valued correctly.
MS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.41, MS is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.36, which indicates a correct valuation of MS.
MS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, MS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MS is valued a bit cheaper than 67.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.54 |
4.3 Compensation for Growth
MS's 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 17.44% in the coming years.
PEG (NY)0.5
PEG (5Y)6.45
EPS Next 2Y21.19%
EPS Next 3Y17.44%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 3.57%. Purely for dividend investing, there may be better candidates out there.
MS's Dividend Yield is comparable with the industry average which is at 7.46.
MS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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
65.32% 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.
DP65.32%
EPS Next 2Y21.19%
EPS Next 3Y17.44%
MORGAN STANLEY
NYSE:MS (7/26/2024, 5:30:00 PM)
After market: 104.25 +0.06 (+0.06%)104.19
+0.63 (+0.61%)
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 Cap170.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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)
Max EPS beat(2)
EPS beat(4)
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Min 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)
Avg Revenue beat(12)
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 | 16.78 | ||
| Fwd PE | 13.36 | ||
| 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)0.5
PEG (5Y)6.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.73% | ||
| ROE | 9.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.1% | ||
| PM (TTM) | 9.01% | ||
| GM | 51.54% | ||
| 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 | 7.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)9.52%
EPS 3Y-6.76%
EPS 5Y
EPS Q2Q%
EPS Next Y33.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.72%
Revenue growth 3Y22.28%
Revenue growth 5Y
Sales 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