MORGAN STANLEY (MS) Stock Fundamental Analysis
USA - NYSE:MS - US6174464486 - Common Stock
158.17 USD
-0.53 (-0.33%)
158.25 USD
+0.08 (+0.05%)
We assign a fundamental rating of 3 out of 10 to MS. MS was compared to 237 industry peers in the Capital Markets industry. MS may be in some trouble as it scores bad on both profitability and health. 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
MS has a worse Return On Assets (1.14%) than 63.71% of its industry peers.
With a decent Return On Equity value of 14.15%, MS is doing good in the industry, outperforming 76.37% of the companies in the same industry.
MS has a Return On Invested Capital of 1.46%. This is in the lower half of the industry: MS underperforms 64.13% 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 7.11%.
The 3 year average ROIC (1.17%) for MS is below the current ROIC(1.46%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 13.32%, MS perfoms like the industry average, outperforming 46.41% of the companies in the same industry.
MS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 18.06%, MS perfoms like the industry average, outperforming 43.04% of the companies in the same industry.
MS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.99%, MS is in the better half of the industry, outperforming 67.09% of the companies in the same industry.
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
Compared to 1 year ago, MS has less shares outstanding
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.
MS has a Altman-Z score of -0.08. This is in the lower half of the industry: MS underperforms 76.37% of its industry peers.
MS has a Debt/Equity ratio of 7.41. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 7.41, MS is doing worse than 87.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.08 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.30 indicates that MS may have some problems paying its short term obligations.
MS's Current ratio of 0.30 is on the low side compared to the rest of the industry. MS is outperformed by 81.86% 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.
The Quick ratio of MS (0.30) is worse than 81.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.31% 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.
Looking at the last year, MS shows a quite strong growth in Revenue. The Revenue has grown by 11.08% in the last year.
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)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
MS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.43% yearly.
Based on estimates for the next years, MS will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
EPS Next Y28.4%
EPS Next 2Y16.67%
EPS Next 3Y15.06%
EPS Next 5Y12.43%
Revenue Next Year16.5%
Revenue Next 2Y10.88%
Revenue Next 3Y9.15%
Revenue Next 5Y7.2%
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
A Price/Earnings ratio of 16.22 indicates a correct valuation of MS.
The rest of the industry has a similar Price/Earnings ratio as MS.
Compared to an average S&P500 Price/Earnings ratio of 25.45, MS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.63, MS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.46. MS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MS is valued a bit cheaper than 71.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.11 |
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.
MS's earnings are expected to grow with 15.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)1.83
EPS Next 2Y16.67%
EPS Next 3Y15.06%
5. Dividend
5.1 Amount
MS has a Yearly Dividend Yield of 6.45%, which is a nice return.
MS's Dividend Yield is comparable with the industry average which is at 8.50.
Compared to an average S&P500 Dividend Yield of 2.45, MS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
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
41.70% 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.
DP41.7%
EPS Next 2Y16.67%
EPS Next 3Y15.06%
158.17
-0.53 (-0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.51%
Inst Owner Change0.23%
Ins Owners0.2%
Ins Owner Change-4.23%
Market Cap251.65B
Revenue(TTM)116.83B
Net Income(TTM)15.56B
Analysts73.33
Price Target170.61 (7.86%)
Short Float %1.17%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
Yearly Dividend3.8
Dividend Growth(5Y)18.94%
DP41.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)12.79%
PT rev (3m)16.73%
EPS NQ rev (1m)10.39%
EPS NQ rev (3m)13.16%
EPS NY rev (1m)11.23%
EPS NY rev (3m)14.96%
Revenue NQ rev (1m)3.36%
Revenue NQ rev (3m)5.18%
Revenue NY rev (1m)4.02%
Revenue NY rev (3m)4.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | 14.63 | ||
| P/S | 2.15 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.29 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 19.11 |
EPS(TTM)9.75
EY6.16%
EPS(NY)10.81
Fwd EY6.83%
FCF(TTM)-4.24
FCFYN/A
OCF(TTM)-2.31
OCFYN/A
SpS73.43
BVpS69.12
TBVpS54.77
PEG (NY)0.57
PEG (5Y)1.83
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 | -0.08 |
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 Y28.4%
EPS Next 2Y16.67%
EPS Next 3Y15.06%
EPS Next 5Y12.43%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%18.47%
Revenue Next Year16.5%
Revenue Next 2Y10.88%
Revenue Next 3Y9.15%
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 for 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.
Can you provide the financial health for MS stock?
The financial health rating of MORGAN STANLEY (MS) is 0 / 10.
Can you provide the dividend sustainability for MS stock?
The dividend rating of MORGAN STANLEY (MS) is 6 / 10 and the dividend payout ratio is 41.7%.