MORGAN STANLEY DIRECT LENDIN (MSDL) Stock Fundamental Analysis
NYSE:MSDL - US61774A1034 - Common Stock
17.63 USD
-0.24 (-1.34%)
17.67 USD
+0.04 (+0.23%)
Overall MSDL gets a fundamental rating of 3 out of 10. We evaluated MSDL against 238 industry peers in the Capital Markets industry. MSDL has a bad profitability rating. Also its financial health evaluation is rather negative. MSDL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MSDL was profitable.
MSDL had a negative operating cash flow in the past year.
1.2 Ratios
The Return On Assets of MSDL (4.35%) is better than 65.55% of its industry peers.
Looking at the Return On Equity, with a value of 9.53%, MSDL is in line with its industry, outperforming 55.04% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.15%, MSDL is in line with its industry, outperforming 55.46% of the companies in the same industry.
MSDL had an Average Return On Invested Capital over the past 3 years of 4.33%. This is below the industry average of 7.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 9.53% | ||
| ROIC | 4.15% |
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 41.23%, MSDL belongs to the best of the industry, outperforming 84.45% of the companies in the same industry.
MSDL's Profit Margin has declined in the last couple of years.
MSDL has a better Operating Margin (48.74%) than 83.19% of its industry peers.
MSDL's Operating Margin has declined in the last couple of years.
MSDL has a Gross Margin (48.58%) which is comparable to the rest of the industry.
MSDL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.74% | ||
| PM (TTM) | 41.23% | ||
| GM | 48.58% |
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
MSDL has more shares outstanding than it did 1 year ago.
MSDL has a worse debt/assets ratio than last year.
2.2 Solvency
MSDL has an Altman-Z score of 0.71. This is a bad value and indicates that MSDL is not financially healthy and even has some risk of bankruptcy.
MSDL's Altman-Z score of 0.71 is in line compared to the rest of the industry. MSDL outperforms 44.54% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that MSDL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.15, MSDL is in line with its industry, outperforming 41.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.11 indicates that MSDL should not have too much problems paying its short term obligations.
The Current ratio of MSDL (1.11) is comparable to the rest of the industry.
MSDL has a Quick Ratio of 1.11. This is a normal value and indicates that MSDL is financially healthy and should not expect problems in meeting its short term obligations.
MSDL has a Quick ratio (1.11) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
MSDL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.51%.
Measured over the past years, MSDL shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.13% on average per year.
MSDL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.83%.
The Revenue has been growing by 51.43% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-29.51%
EPS 3Y37.13%
EPS 5YN/A
EPS Q2Q%-20.63%
Revenue 1Y (TTM)3.83%
Revenue growth 3Y51.43%
Revenue growth 5YN/A
Sales Q2Q%-11.91%
3.2 Future
MSDL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.56% yearly.
Based on estimates for the next years, MSDL will show a decrease in Revenue. The Revenue will decrease by -7.58% on average per year.
EPS Next Y-15.78%
EPS Next 2Y-11.2%
EPS Next 3Y-8.56%
EPS Next 5YN/A
Revenue Next Year-13.36%
Revenue Next 2Y-9.02%
Revenue Next 3Y-7.58%
Revenue Next 5YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.84, the valuation of MSDL can be described as very cheap.
Based on the Price/Earnings ratio, MSDL is valued cheaper than 84.87% of the companies in the same industry.
MSDL is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.98, the valuation of MSDL can be described as very reasonable.
MSDL's Price/Forward Earnings ratio is rather cheap when compared to the industry. MSDL is cheaper than 82.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MSDL to the average of the S&P500 Index (22.63), we can say MSDL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as MSDL's earnings are expected to decrease with -8.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.2%
EPS Next 3Y-8.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.75%, MSDL is a good candidate for dividend investing.
MSDL's Dividend Yield is a higher than the industry average which is at 8.00.
MSDL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.75% |
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
114.43% of the earnings are spent on dividend by MSDL. This is not a sustainable payout ratio.
DP114.43%
EPS Next 2Y-11.2%
EPS Next 3Y-8.56%
17.63
-0.24 (-1.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners26.97%
Inst Owner Change17.11%
Ins Owners0.15%
Ins Owner Change36.73%
Market Cap1.53B
Analysts73.33
Price Target20.15 (14.29%)
Short Float %0.22%
Short Ratio0.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.75% |
Yearly Dividend1.91
Dividend Growth(5Y)N/A
DP114.43%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.06%
Min EPS beat(2)-7.31%
Max EPS beat(2)-4.82%
EPS beat(4)1
Avg EPS beat(4)-5.37%
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)0
Avg Revenue beat(2)-6.25%
Min Revenue beat(2)-9.79%
Max Revenue beat(2)-2.72%
Revenue beat(4)1
Avg Revenue beat(4)-5.38%
Min Revenue beat(4)-9.79%
Max Revenue beat(4)0.23%
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)-2.47%
PT rev (3m)-3.07%
EPS NQ rev (1m)-1.82%
EPS NQ rev (3m)-3.54%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-2.9%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-8.35%
Revenue NY rev (3m)3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 8.98 | ||
| P/S | 3.7 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.25
EY12.76%
EPS(NY)1.96
Fwd EY11.14%
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)-1.79
OCFYN/A
SpS4.76
BVpS20.62
TBVpS20.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 9.53% | ||
| ROCE | 5.25% | ||
| ROIC | 4.15% | ||
| ROICexc | 4.21% | ||
| ROICexgc | 4.21% | ||
| OM | 48.74% | ||
| PM (TTM) | 41.23% | ||
| GM | 48.58% | ||
| 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-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.54 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 0.71 |
F-Score3
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)-29.51%
EPS 3Y37.13%
EPS 5YN/A
EPS Q2Q%-20.63%
EPS Next Y-15.78%
EPS Next 2Y-11.2%
EPS Next 3Y-8.56%
EPS Next 5YN/A
Revenue 1Y (TTM)3.83%
Revenue growth 3Y51.43%
Revenue growth 5YN/A
Sales Q2Q%-11.91%
Revenue Next Year-13.36%
Revenue Next 2Y-9.02%
Revenue Next 3Y-7.58%
Revenue Next 5YN/A
EBIT growth 1Y-8.02%
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