MORGAN STANLEY DIRECT LENDIN (MSDL) Stock Fundamental Analysis
NYSE:MSDL - New York Stock Exchange, Inc. - US61774A1034 - Common Stock - Currency: USD
Taking everything into account, MSDL scores 3 out of 10 in our fundamental rating. MSDL was compared to 229 industry peers in the Capital Markets industry. MSDL has a medium profitability rating, but doesn't score so well on its financial health evaluation. MSDL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MSDL had positive earnings in the past year.
MSDL had a negative operating cash flow in the past year.
1.2 Ratios
MSDL has a better Return On Assets (5.51%) than 69.87% of its industry peers.
MSDL has a better Return On Equity (11.70%) than 63.32% of its industry peers.
MSDL has a Return On Invested Capital of 4.61%. This is in the better half of the industry: MSDL outperforms 62.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MSDL is below the industry average of 7.23%.
The last Return On Invested Capital (4.61%) for MSDL is above the 3 year average (4.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 11.7% | ||
| ROIC | 4.61% |
ROA(3y)4.71%
ROA(5y)N/A
ROE(3y)9.53%
ROE(5y)N/A
ROIC(3y)4.33%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 51.81%, MSDL belongs to the best of the industry, outperforming 89.08% of the companies in the same industry.
MSDL's Profit Margin has declined in the last couple of years.
The Operating Margin of MSDL (53.52%) is better than 92.14% of its industry peers.
In the last couple of years the Operating Margin of MSDL has declined.
With a decent Gross Margin value of 51.50%, MSDL is doing good in the industry, outperforming 60.70% of the companies in the same industry.
In the last couple of years the Gross Margin of MSDL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.52% | ||
| PM (TTM) | 51.81% | ||
| GM | 51.5% |
OM growth 3Y-4.23%
OM growth 5YN/A
PM growth 3Y-9.32%
PM growth 5YN/A
GM growth 3Y-2.84%
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, MSDL has more shares outstanding
MSDL has a worse debt/assets ratio than last year.
2.2 Solvency
MSDL has an Altman-Z score of 0.81. This is a bad value and indicates that MSDL is not financially healthy and even has some risk of bankruptcy.
MSDL has a Altman-Z score of 0.81. This is comparable to the rest of the industry: MSDL outperforms 46.29% of its industry peers.
MSDL has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
MSDL's Debt to Equity ratio of 1.07 is in line compared to the rest of the industry. MSDL outperforms 51.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MSDL has a Current Ratio of 1.08. This is a normal value and indicates that MSDL is financially healthy and should not expect problems in meeting its short term obligations.
MSDL's Current ratio of 1.08 is in line compared to the rest of the industry. MSDL outperforms 46.72% of its industry peers.
A Quick Ratio of 1.08 indicates that MSDL should not have too much problems paying its short term obligations.
MSDL has a Quick ratio (1.08) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for MSDL have decreased by -7.08% in the last year.
MSDL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.13% yearly.
Looking at the last year, MSDL shows a quite strong growth in Revenue. The Revenue has grown by 13.14% in the last year.
Measured over the past years, MSDL shows a very strong growth in Revenue. The Revenue has been growing by 51.43% on average per year.
EPS 1Y (TTM)-7.08%
EPS 3Y37.13%
EPS 5YN/A
EPS Q2Q%-17.46%
Revenue 1Y (TTM)13.14%
Revenue growth 3Y51.43%
Revenue growth 5YN/A
Sales Q2Q%2.38%
3.2 Future
Based on estimates for the next years, MSDL will show a decrease in Earnings Per Share. The EPS will decrease by -7.53% on average per year.
The Revenue is expected to decrease by -7.38% on average over the next years.
EPS Next Y-11.11%
EPS Next 2Y-6.68%
EPS Next 3Y-7.53%
EPS Next 5YN/A
Revenue Next Year-2.48%
Revenue Next 2Y-2.25%
Revenue Next 3Y-7.38%
Revenue Next 5YN/A
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
MSDL is valuated reasonably with a Price/Earnings ratio of 8.34.
82.10% of the companies in the same industry are more expensive than MSDL, based on the Price/Earnings ratio.
MSDL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.85.
MSDL is valuated reasonably with a Price/Forward Earnings ratio of 9.15.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSDL indicates a somewhat cheap valuation: MSDL is cheaper than 75.11% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.89. MSDL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MSDL's earnings are expected to decrease with -7.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.68%
EPS Next 3Y-7.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.21%, MSDL is a good candidate for dividend investing.
MSDL's Dividend Yield is a higher than the industry average which is at 8.35.
MSDL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.21% |
5.2 History
MSDL does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MSDL pays out 78.44% of its income as dividend. This is not a sustainable payout ratio.
DP78.44%
EPS Next 2Y-6.68%
EPS Next 3Y-7.53%
19.85
+0.22 (+1.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners20.85%
Inst Owner Change4.67%
Ins Owners0.2%
Ins Owner Change0%
Market Cap1.75B
Analysts73.33
Price Target20.78 (4.69%)
Short Float %0.2%
Short Ratio0.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.21% |
Yearly Dividend1.91
Dividend Growth(5Y)N/A
DP78.44%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.68%
Min EPS beat(2)-10.16%
Max EPS beat(2)0.79%
EPS beat(4)1
Avg EPS beat(4)-3.61%
Min EPS beat(4)-10.16%
Max EPS beat(4)0.79%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-4.51%
Min Revenue beat(2)-9.25%
Max Revenue beat(2)0.23%
Revenue beat(4)2
Avg Revenue beat(4)-2.59%
Min Revenue beat(4)-9.25%
Max Revenue beat(4)0.94%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.98%
PT rev (3m)-3.89%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.47%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)11.34%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 9.15 | ||
| P/S | 4.19 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.95 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.38
EY11.99%
EPS(NY)2.17
Fwd EY10.92%
FCF(TTM)-4.25
FCFYN/A
OCF(TTM)-4.25
OCFYN/A
SpS4.73
BVpS20.95
TBVpS20.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 11.7% | ||
| ROCE | 5.84% | ||
| ROIC | 4.61% | ||
| ROICexc | 4.7% | ||
| ROICexgc | 4.7% | ||
| OM | 53.52% | ||
| PM (TTM) | 51.81% | ||
| GM | 51.5% | ||
| FCFM | N/A |
ROA(3y)4.71%
ROA(5y)N/A
ROE(3y)9.53%
ROE(5y)N/A
ROIC(3y)4.33%
ROIC(5y)N/A
ROICexc(3y)4.43%
ROICexc(5y)N/A
ROICexgc(3y)4.43%
ROICexgc(5y)N/A
ROCE(3y)5.48%
ROCE(5y)N/A
ROICexcg growth 3Y24.43%
ROICexcg growth 5YN/A
ROICexc growth 3Y24.43%
ROICexc growth 5YN/A
OM growth 3Y-4.23%
OM growth 5YN/A
PM growth 3Y-9.32%
PM growth 5YN/A
GM growth 3Y-2.84%
GM growth 5YN/A
F-Score2
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.97 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 0.81 |
F-Score2
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.08%
EPS 3Y37.13%
EPS 5YN/A
EPS Q2Q%-17.46%
EPS Next Y-11.11%
EPS Next 2Y-6.68%
EPS Next 3Y-7.53%
EPS Next 5YN/A
Revenue 1Y (TTM)13.14%
Revenue growth 3Y51.43%
Revenue growth 5YN/A
Sales Q2Q%2.38%
Revenue Next Year-2.48%
Revenue Next 2Y-2.25%
Revenue Next 3Y-7.38%
Revenue Next 5YN/A
EBIT growth 1Y11.57%
EBIT growth 3Y45.02%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-345.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-345.62%
OCF growth 3YN/A
OCF growth 5YN/A