MORGAN STANLEY (MS) Stock Fundamental Analysis
NYSE:MS - New York Stock Exchange, Inc. - US6174464486 - Common Stock - Currency: USD
MS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 230 industry peers in the Capital Markets industry. MS has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, MS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MS was profitable.
In the past year MS had a positive cash flow from operations.
In the past 5 years MS has always been profitable.
In multiple years MS reported negative operating cash flow during the last 5 years.
1.2 Ratios
MS's Return On Assets of 1.05% is on the low side compared to the rest of the industry. MS is outperformed by 64.78% of its industry peers.
Looking at the Return On Equity, with a value of 12.25%, MS is in the better half of the industry, outperforming 66.96% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.34%, MS is doing worse than 67.83% of the companies in the same industry.
MS had an Average Return On Invested Capital over the past 3 years of 1.17%. This is significantly below the industry average of 7.27%.
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 | 1.05% | ||
| ROE | 12.25% | ||
| 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 of 11.93%. This is comparable to the rest of the industry: MS outperforms 43.91% of its industry peers.
MS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 16.40%, MS is not doing good in the industry: 63.48% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MS has declined.
MS's Gross Margin of 53.71% is fine compared to the rest of the industry. MS outperforms 61.74% of its industry peers.
In the last couple of years the Gross Margin of MS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.4% | ||
| PM (TTM) | 11.93% | ||
| GM | 53.71% |
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
The debt/assets ratio for MS is higher compared to a year ago.
2.2 Solvency
MS has an Altman-Z score of -0.08. This is a bad value and indicates that MS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MS (-0.08) is worse than 76.52% of its industry peers.
MS has a Debt/Equity ratio of 6.99. This is a high value indicating a heavy dependency on external financing.
MS has a worse Debt to Equity ratio (6.99) than 86.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.08 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MS has a Current Ratio of 0.30. 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 0.30. This is amonst the worse of the industry: MS underperforms 80.00% of its industry peers.
A Quick Ratio of 0.30 indicates that MS may have some problems paying its short term obligations.
MS has a Quick ratio of 0.30. This is amonst the worse of the industry: MS underperforms 80.00% 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 51.33%, which is quite impressive.
The Earnings Per Share has been growing by 8.88% on average over the past years. This is quite good.
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
Based on estimates for the next years, MS will show a small growth in Earnings Per Share. The EPS will grow by 6.26% on average per year.
Based on estimates for the next years, MS will show a small growth in Revenue. The Revenue will grow by 3.10% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.57, the valuation of MS can be described as correct.
MS's Price/Earnings is on the same level as the industry average.
MS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 12.92, which 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.
When comparing the Price/Forward Earnings ratio of MS to the average of the S&P500 Index (21.85), we can say MS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.92 |
4.2 Price Multiples
MS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MS is cheaper than 76.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.93 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.17
PEG (5Y)1.64
EPS Next 2Y9.97%
EPS Next 3Y10.25%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 2.79%.
MS's Dividend Yield is comparable with the industry average which is at 8.11.
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 | 2.79% |
5.2 History
The dividend of MS is nicely growing with an annual growth rate of 18.94%!
MS has been paying a dividend for at least 10 years, so it has a reliable track record.
MS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)18.94%
Div Incr Years10
Div Non Decr Years13
5.3 Sustainability
47.95% 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.
DP47.95%
EPS Next 2Y9.97%
EPS Next 3Y10.25%
NYSE:MS (5/23/2025, 9:40:10 AM)
124.1
-2.16 (-1.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.19%
Inst Owner Change0.61%
Ins Owners0.19%
Ins Owner Change-0.03%
Market Cap199.43B
Analysts72.9
Price Target128.84 (3.82%)
Short Float %1.21%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend3.8
Dividend Growth(5Y)18.94%
DP47.95%
Div Incr Years10
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.16%
Min EPS beat(2)15.26%
Max EPS beat(2)27.07%
EPS beat(4)4
Avg EPS beat(4)16.98%
Min EPS beat(4)7.49%
Max EPS beat(4)27.07%
EPS beat(8)7
Avg EPS beat(8)9.28%
EPS beat(12)9
Avg EPS beat(12)6.46%
EPS beat(16)13
Avg EPS beat(16)7.97%
Revenue beat(2)2
Avg Revenue beat(2)4.23%
Min Revenue beat(2)3.68%
Max Revenue beat(2)4.78%
Revenue beat(4)4
Avg Revenue beat(4)3.09%
Min Revenue beat(4)1.95%
Max Revenue beat(4)4.78%
Revenue beat(8)5
Avg Revenue beat(8)8.56%
Revenue beat(12)9
Avg Revenue beat(12)12.37%
Revenue beat(16)12
Avg Revenue beat(16)10.47%
PT rev (1m)-8.76%
PT rev (3m)-6.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.2%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.92 | ||
| P/S | 1.86 | ||
| P/FCF | N/A | ||
| P/OCF | 146.42 | ||
| P/B | 1.91 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 17.93 |
EPS(TTM)8.52
EY6.87%
EPS(NY)9.6
Fwd EY7.74%
FCF(TTM)-1.31
FCFYN/A
OCF(TTM)0.85
OCFY0.68%
SpS66.76
BVpS65.03
TBVpS50.62
PEG (NY)1.17
PEG (5Y)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.25% | ||
| ROCE | 3.05% | ||
| ROIC | 1.34% | ||
| ROICexc | 1.5% | ||
| ROICexgc | 1.58% | ||
| OM | 16.4% | ||
| PM (TTM) | 11.93% | ||
| GM | 53.71% | ||
| 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-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 32.08 | ||
| Cap/Depr | 67.08% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 0.38 | ||
| Cash Conversion | 5.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | -0.08 |
F-Score7
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 1Y41.98%
EBIT growth 3Y-3.64%
EBIT growth 5Y9.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y94.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y104.06%
OCF growth 3Y-65.77%
OCF growth 5Y-49.33%