MORGAN STANLEY DIRECT LENDIN (MSDL) Stock Fundamental Analysis
NYSE:MSDL - New York Stock Exchange, Inc. - US61774A1034 - Common Stock - Currency: USD
Overall MSDL gets a fundamental rating of 3 out of 10. We evaluated MSDL against 235 industry peers in the Capital Markets industry. There are concerns on the financial health of MSDL while its profitability can be described as average. 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.
In the past year MSDL has reported a negative cash flow from operations.
1.2 Ratios
MSDL's Return On Assets of 4.95% is fine compared to the rest of the industry. MSDL outperforms 68.51% of its industry peers.
MSDL has a Return On Equity of 10.65%. This is in the better half of the industry: MSDL outperforms 63.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.43%, MSDL is in line with its industry, outperforming 56.60% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MSDL is below the industry average of 7.84%.
The last Return On Invested Capital (4.43%) for MSDL is above the 3 year average (4.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 10.65% | ||
| ROIC | 4.43% |
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
MSDL has a Profit Margin of 46.26%. This is amongst the best in the industry. MSDL outperforms 90.64% of its industry peers.
MSDL's Profit Margin has declined in the last couple of years.
MSDL has a better Operating Margin (51.25%) than 86.38% of its industry peers.
In the last couple of years the Operating Margin of MSDL has declined.
With a Gross Margin value of 50.14%, MSDL perfoms like the industry average, outperforming 56.60% of the companies in the same industry.
MSDL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.25% | ||
| PM (TTM) | 46.26% | ||
| GM | 50.14% |
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.
Compared to 1 year ago, MSDL has a worse debt to assets ratio.
2.2 Solvency
MSDL has an Altman-Z score of 0.79. This is a bad value and indicates that MSDL is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.79, MSDL perfoms like the industry average, outperforming 46.38% of the companies in the same industry.
A Debt/Equity ratio of 1.11 is on the high side and indicates that MSDL has dependencies on debt financing.
The Debt to Equity ratio of MSDL (1.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MSDL has a Current Ratio of 1.22. 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 Current ratio (1.22) which is in line with its industry peers.
A Quick Ratio of 1.22 indicates that MSDL should not have too much problems paying its short term obligations.
MSDL has a Quick ratio of 1.22. This is comparable to the rest of the industry: MSDL outperforms 54.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
MSDL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.08%.
The Earnings Per Share has been growing by 37.13% on average over the past years. This is a very strong growth
MSDL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.14%.
MSDL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 51.43% yearly.
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
The Earnings Per Share is expected to decrease by -7.85% on average over the next years.
The Revenue is expected to decrease by -4.49% on average over the next years.
EPS Next Y-15.34%
EPS Next 2Y-9.3%
EPS Next 3Y-7.85%
EPS Next 5YN/A
Revenue Next Year-5.46%
Revenue Next 2Y-4.78%
Revenue Next 3Y-4.49%
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
The Price/Earnings ratio is 8.24, which indicates a very decent valuation of MSDL.
Based on the Price/Earnings ratio, MSDL is valued cheaply inside the industry as 83.83% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MSDL to the average of the S&P500 Index (27.69), we can say MSDL is valued rather cheaply.
The Price/Forward Earnings ratio is 9.58, which indicates a very decent valuation of MSDL.
MSDL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MSDL is cheaper than 78.30% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.36. MSDL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 9.58 |
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 -7.85% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.3%
EPS Next 3Y-7.85%
5. Dividend
5.1 Amount
MSDL has a Yearly Dividend Yield of 11.17%, which is a nice return.
MSDL's Dividend Yield is a higher than the industry average which is at 8.00.
Compared to an average S&P500 Dividend Yield of 2.34, MSDL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.17% |
5.2 History
MSDL is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MSDL pays out 95.61% of its income as dividend. This is not a sustainable payout ratio.
DP95.61%
EPS Next 2Y-9.3%
EPS Next 3Y-7.85%
NYSE:MSDL (7/23/2025, 8:04:01 PM)
19.62
-0.17 (-0.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners25.55%
Inst Owner Change-0.04%
Ins Owners0.21%
Ins Owner Change0%
Market Cap1.71B
Analysts73.33
Price Target20.66 (5.3%)
Short Float %0.56%
Short Ratio1.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.17% |
Yearly Dividend1.91
Dividend Growth(5Y)N/A
DP95.61%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.73%
Min EPS beat(2)-10.16%
Max EPS beat(2)-7.31%
EPS beat(4)1
Avg EPS beat(4)-4.34%
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)-5.98%
Min Revenue beat(2)-9.25%
Max Revenue beat(2)-2.72%
Revenue beat(4)2
Avg Revenue beat(4)-2.7%
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)0.62%
PT rev (3m)-3.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 9.58 | ||
| P/S | 4.09 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.94 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.38
EY12.13%
EPS(NY)2.05
Fwd EY10.44%
FCF(TTM)-3.28
FCFYN/A
OCF(TTM)-3.28
OCFYN/A
SpS4.8
BVpS20.86
TBVpS20.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 10.65% | ||
| ROCE | 5.6% | ||
| ROIC | 4.43% | ||
| ROICexc | 4.51% | ||
| ROICexgc | 4.51% | ||
| OM | 51.25% | ||
| PM (TTM) | 46.26% | ||
| GM | 50.14% | ||
| 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 | 1.11 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.88 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 0.79 |
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)-7.08%
EPS 3Y37.13%
EPS 5YN/A
EPS Q2Q%-17.46%
EPS Next Y-15.34%
EPS Next 2Y-9.3%
EPS Next 3Y-7.85%
EPS Next 5YN/A
Revenue 1Y (TTM)13.14%
Revenue growth 3Y51.43%
Revenue growth 5YN/A
Sales Q2Q%2.38%
Revenue Next Year-5.46%
Revenue Next 2Y-4.78%
Revenue Next 3Y-4.49%
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