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MORGAN STANLEY (MS) Stock Fundamental Analysis

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

139.09  -3.37 (-2.37%)

After market: 139.1 +0.01 (+0.01%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to MS. MS was compared to 236 industry peers in the Capital Markets industry. MS has a bad profitability rating. Also its financial health evaluation is rather negative. MS has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year MS was profitable.
In the past year MS has reported a negative 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.
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

MS has a Return On Assets of 1.05%. This is in the lower half of the industry: MS underperforms 64.83% of its industry peers.
MS has a better Return On Equity (12.82%) than 70.34% of its industry peers.
MS has a Return On Invested Capital of 1.35%. This is in the lower half of the industry: MS underperforms 67.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MS is significantly below the industry average of 7.89%.
The 3 year average ROIC (1.17%) for MS is below the current ROIC(1.35%), indicating increased profibility in the last year.
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 has a Profit Margin (12.43%) which is in line with its industry peers.
MS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 17.02%, MS is not doing good in the industry: 63.56% of the companies in the same industry are doing better.
MS's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 54.40%, MS is doing good in the industry, outperforming 64.41% of the companies in the same industry.
MS's Gross Margin has declined in the last couple of years.
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.
MS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MS has a worse debt to assets ratio.
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 -0.11. This is a bad value and indicates that MS is not financially healthy and even has some risk of bankruptcy.
MS's Altman-Z score of -0.11 is on the low side compared to the rest of the industry. MS is outperformed by 76.27% of its industry peers.
A Debt/Equity ratio of 7.22 is on the high side and indicates that MS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 7.22, MS is doing worse than 87.71% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 7.22
Debt/FCF N/A
Altman-Z -0.11
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

A Current Ratio of 0.26 indicates that MS may have some problems paying its short term obligations.
MS has a worse Current ratio (0.26) than 86.02% 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 Quick ratio of 0.26. This is amonst the worse of the industry: MS underperforms 86.02% 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

The Earnings Per Share has grown by an impressive 42.19% over the past year.
Measured over the past years, MS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.88% on average per year.
MS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.36%.
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)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

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.
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 Year8.97%
Revenue Next 2Y6.77%
Revenue Next 3Y5.95%
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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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.75, MS is valued correctly.
MS's Price/Earnings ratio is in line with the industry average.
MS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.82.
MS is valuated correctly with a Price/Forward Earnings ratio of 14.41.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MS is on the same level as its industry peers.
MS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.75
Fwd PE 14.41
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

73.31% of the companies in the same industry are more expensive than MS, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 19.52
MS Per share dataMS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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)1.35
PEG (5Y)1.77
EPS Next 2Y10.26%
EPS Next 3Y10.52%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.51%, MS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.06, 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 2.35.
Industry RankSector Rank
Dividend Yield 6.51%

5.2 History

On average, the dividend of MS grows each year by 18.94%, which is quite nice.
MS has paid a dividend for at least 10 years, which is 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.
MS's earnings are growing slower than its dividend. 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 (8/1/2025, 8:04:00 PM)

After market: 139.1 +0.01 (+0.01%)

139.09

-3.37 (-2.37%)

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 Owners62.74%
Inst Owner Change0.06%
Ins Owners0.2%
Ins Owner Change0.01%
Market Cap222.27B
Analysts72.9
Price Target144.59 (3.95%)
Short Float %1.23%
Short Ratio2.68
Dividend
Industry RankSector Rank
Dividend Yield 6.51%
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)10.47%
PT rev (3m)11.39%
EPS NQ rev (1m)-6.15%
EPS NQ rev (3m)-5.43%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.07%
Valuation
Industry RankSector Rank
PE 15.75
Fwd PE 14.41
P/S 2.02
P/FCF N/A
P/OCF N/A
P/B 2.08
P/tB 2.65
EV/EBITDA 19.52
EPS(TTM)8.83
EY6.35%
EPS(NY)9.65
Fwd EY6.94%
FCF(TTM)-18.98
FCFYN/A
OCF(TTM)-16.88
OCFYN/A
SpS68.93
BVpS66.84
TBVpS52.44
PEG (NY)1.35
PEG (5Y)1.77
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 -0.11
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)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 Year8.97%
Revenue Next 2Y6.77%
Revenue Next 3Y5.95%
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%