MORGAN STANLEY (MS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MS - US6174464486 - Common Stock
186.32 USD
+1.64 (+0.89%)
186.32 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to MS. MS was compared to 235 industry peers in the Capital Markets industry. Both the profitability and financial health of MS have multiple concerns. MS is not valued too expensively and it also shows 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.
MS had positive earnings in each of the past 5 years.
In multiple years MS reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.14%, MS is doing worse than 63.40% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.15%, MS is in the better half of the industry, outperforming 74.89% of the companies in the same industry.
The Return On Invested Capital of MS (1.46%) is worse than 62.98% of its industry peers.
MS had an Average Return On Invested Capital over the past 3 years of 1.17%. This is significantly below the industry average of 7.14%.
The last Return On Invested Capital (1.46%) for MS is above the 3 year average (1.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.14% | ||
| ROE | 14.15% | ||
| ROIC | 1.46% |
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's Profit Margin of 13.32% is in line compared to the rest of the industry. MS outperforms 46.81% of its industry peers.
In the last couple of years the Profit Margin of MS has declined.
MS has a Operating Margin (18.06%) which is in line with its industry peers.
MS's Operating Margin has declined in the last couple of years.
MS has a Gross Margin of 54.99%. This is in the better half of the industry: MS outperforms 67.66% of its industry peers.
In the last couple of years the Gross Margin of MS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.06% | ||
| PM (TTM) | 13.32% | ||
| GM | 54.99% |
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.
The number of shares outstanding for MS has been increased compared to 5 years ago.
Compared to 1 year ago, MS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.06, we must say that MS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MS (-0.06) is worse than 74.04% of its industry peers.
A Debt/Equity ratio of 7.41 is on the high side and indicates that MS has dependencies on debt financing.
MS has a Debt to Equity ratio of 7.41. This is amonst the worse of the industry: MS underperforms 85.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.06 |
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.
The Current ratio of MS (0.30) is worse than 81.28% of its industry peers.
MS has a Quick 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's Quick ratio of 0.30 is on the low side compared to the rest of the industry. MS is outperformed by 81.28% 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 45.31%, 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 11.08% in the last year.
The Revenue has been growing by 14.79% on average over the past years. This is quite good.
EPS 1Y (TTM)45.31%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%48.94%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%18.47%
3.2 Future
Based on estimates for the next years, MS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.43% on average per year.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y28.7%
EPS Next 2Y17.07%
EPS Next 3Y15.27%
EPS Next 5Y12.43%
Revenue Next Year16.56%
Revenue Next 2Y11.03%
Revenue Next 3Y9.26%
Revenue Next 5Y7.2%
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 accelerating.
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
MS is valuated rather expensively with a Price/Earnings ratio of 19.11.
Compared to the rest of the industry, the Price/Earnings ratio of MS is on the same level as its industry peers.
MS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
MS is valuated rather expensively with a Price/Forward Earnings ratio of 17.12.
MS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.88. MS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 17.12 |
4.2 Price Multiples
MS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MS is cheaper than 71.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.68 |
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 15.27% in the coming years.
PEG (NY)0.67
PEG (5Y)2.15
EPS Next 2Y17.07%
EPS Next 3Y15.27%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 2.12%.
MS's Dividend Yield is comparable with the industry average which is at 6.39.
Compared to an average S&P500 Dividend Yield of 1.94, MS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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
5.3 Sustainability
MS pays out 41.70% 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.
DP41.7%
EPS Next 2Y17.07%
EPS Next 3Y15.27%
186.32
+1.64 (+0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.56%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change-0.05%
Market Cap296.44B
Revenue(TTM)116.83B
Net Income(TTM)15.56B
Analysts74.55
Price Target176.46 (-5.29%)
Short Float %1.3%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend3.8
Dividend Growth(5Y)18.94%
DP41.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.52%
Min EPS beat(2)5.77%
Max EPS beat(2)29.27%
EPS beat(4)4
Avg EPS beat(4)19.15%
Min EPS beat(4)5.77%
Max EPS beat(4)29.27%
EPS beat(8)7
Avg EPS beat(8)14.05%
EPS beat(12)11
Avg EPS beat(12)10.53%
EPS beat(16)13
Avg EPS beat(16)8.07%
Revenue beat(2)2
Avg Revenue beat(2)3.7%
Min Revenue beat(2)1.43%
Max Revenue beat(2)5.96%
Revenue beat(4)4
Avg Revenue beat(4)4.02%
Min Revenue beat(4)1.43%
Max Revenue beat(4)5.96%
Revenue beat(8)7
Avg Revenue beat(8)2.74%
Revenue beat(12)9
Avg Revenue beat(12)10.9%
Revenue beat(16)12
Avg Revenue beat(16)9.91%
PT rev (1m)2.78%
PT rev (3m)18.78%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)13.85%
EPS NY rev (1m)0.04%
EPS NY rev (3m)11.48%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)5.44%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)4.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 17.12 | ||
| P/S | 2.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.7 | ||
| P/tB | 3.4 | ||
| EV/EBITDA | 20.68 |
EPS(TTM)9.75
EY5.23%
EPS(NY)10.88
Fwd EY5.84%
FCF(TTM)-4.24
FCFYN/A
OCF(TTM)-2.31
OCFYN/A
SpS73.43
BVpS69.12
TBVpS54.77
PEG (NY)0.67
PEG (5Y)2.15
Graham Number123.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.14% | ||
| ROE | 14.15% | ||
| ROCE | 3.33% | ||
| ROIC | 1.46% | ||
| ROICexc | 1.61% | ||
| ROICexgc | 1.7% | ||
| OM | 18.06% | ||
| PM (TTM) | 13.32% | ||
| GM | 54.99% | ||
| 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%
ROICexgc growth 3Y-7.03%
ROICexgc 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-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 31.03 | ||
| Cap/Depr | 59.4% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 0.45 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | -0.06 |
F-Score6
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)45.31%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%48.94%
EPS Next Y28.7%
EPS Next 2Y17.07%
EPS Next 3Y15.27%
EPS Next 5Y12.43%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%18.47%
Revenue Next Year16.56%
Revenue Next 2Y11.03%
Revenue Next 3Y9.26%
Revenue Next 5Y7.2%
EBIT growth 1Y37.32%
EBIT growth 3Y-3.64%
EBIT growth 5Y9.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y79.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y87.65%
OCF growth 3Y-65.77%
OCF growth 5Y-49.33%
MORGAN STANLEY / MS FAQ
Can you provide the ChartMill fundamental rating for MORGAN STANLEY?
ChartMill assigns a fundamental rating of 3 / 10 to MS.
What is the valuation status of MORGAN STANLEY (MS) stock?
ChartMill assigns a valuation rating of 4 / 10 to MORGAN STANLEY (MS). This can be considered as Fairly Valued.
What is the profitability of MS stock?
MORGAN STANLEY (MS) has a profitability rating of 3 / 10.
What is the valuation of MORGAN STANLEY based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MORGAN STANLEY (MS) is 19.11 and the Price/Book (PB) ratio is 2.7.
What is the expected EPS growth for MORGAN STANLEY (MS) stock?
The Earnings per Share (EPS) of MORGAN STANLEY (MS) is expected to grow by 28.7% in the next year.