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 233 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.
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.
In multiple years MS reported negative operating cash flow during the last 5 years.
1.2 Ratios
MS has a worse Return On Assets (1.05%) than 65.67% of its industry peers.
With a decent Return On Equity value of 12.82%, MS is doing good in the industry, outperforming 69.96% of the companies in the same industry.
With a Return On Invested Capital value of 1.35%, MS is not doing good in the industry: 69.53% of the companies in the same industry are doing better.
MS had an Average Return On Invested Capital over the past 3 years of 1.17%. This is significantly below the industry average of 7.84%.
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 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 (12.43%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MS has declined.
MS has a worse Operating Margin (17.02%) than 64.38% of its industry peers.
MS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.40%, MS is in the better half of the industry, outperforming 63.95% of the companies in the same industry.
MS's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, MS has a worse debt to assets ratio.
2.2 Solvency
MS has an Altman-Z score of -0.11. This is a bad value and indicates that MS is not financially healthy and even has some risk of bankruptcy.
MS has a worse Altman-Z score (-0.11) than 77.25% of its industry peers.
MS has a Debt/Equity ratio of 7.22. This is a high value indicating a heavy dependency on external 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 88.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.11 |
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.
MS's Current ratio of 0.26 is on the low side compared to the rest of the industry. MS is outperformed by 86.70% 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.
The Quick ratio of MS (0.26) is worse than 86.70% 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.
The Earnings Per Share has been growing by 8.88% on average over the past years. This is quite good.
The Revenue has grown by 10.79% in the past year. This is quite good.
Measured over the past years, MS shows a quite strong growth in Revenue. The Revenue has been growing by 14.79% on average per year.
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.
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 Y12.64%
EPS Next 2Y10.18%
EPS Next 3Y10.39%
EPS Next 5Y6.26%
Revenue Next Year9.19%
Revenue Next 2Y6.59%
Revenue Next 3Y5.56%
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.
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
Based on the Price/Earnings ratio of 16.70, the valuation of MS can be described as correct.
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 27.30.
A Price/Forward Earnings ratio of 14.76 indicates a correct valuation of MS.
The rest of the industry has a similar Price/Forward Earnings ratio as MS.
MS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 14.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MS indicates a somewhat cheap valuation: MS is cheaper than 74.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.6 |
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)1.32
PEG (5Y)1.88
EPS Next 2Y10.18%
EPS Next 3Y10.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.26%, MS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.10, MS has a dividend in line with its industry peers.
MS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
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.
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.
The dividend of MS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.71%
EPS Next 2Y10.18%
EPS Next 3Y10.39%
142.28
-0.81 (-0.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.74%
Inst Owner Change0%
Ins Owners0.2%
Ins Owner Change-0.02%
Market Cap228.26B
Analysts72.9
Price Target130.88 (-8.01%)
Short Float %1.22%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
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)1.58%
PT rev (3m)-7.31%
EPS NQ rev (1m)-2.14%
EPS NQ rev (3m)-6.04%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-2.05%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 14.76 | ||
| P/S | 2.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.14 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 19.6 |
EPS(TTM)8.52
EY5.99%
EPS(NY)9.64
Fwd EY6.77%
FCF(TTM)-18.91
FCFYN/A
OCF(TTM)-16.81
OCFYN/A
SpS68.66
BVpS66.58
TBVpS52.23
PEG (NY)1.32
PEG (5Y)1.88
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 | -0.11 |
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 Y12.64%
EPS Next 2Y10.18%
EPS Next 3Y10.39%
EPS Next 5Y6.26%
Revenue 1Y (TTM)10.79%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%17.2%
Revenue Next Year9.19%
Revenue Next 2Y6.59%
Revenue Next 3Y5.56%
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%