WBAG:MWD

Stock Analysis Report

Executive Summary

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia.

Rewards

Trading at 0.1% below its fair value

Earnings are forecast to grow 1.99% per year

Earnings have grown 17.3% per year over the past 5 years

Pays a high and reliable dividend of 2.51%

Risk Analysis

No risks detected for MWD from our risk checks.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Morgan Stanley's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MWD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

MWD

1.1%

AT Capital Markets

0.1%

AT Market


1 Year Return

38.4%

MWD

19.8%

AT Capital Markets

4.3%

AT Market

Return vs Industry: MWD exceeded the Austrian Capital Markets industry which returned 19.3% over the past year.

Return vs Market: MWD exceeded the Austrian Market which returned 5.1% over the past year.


Shareholder returns

MWDIndustryMarket
7 Day-0.3%1.1%0.1%
30 Day-0.9%4.6%-0.3%
90 Day15.1%10.8%0.2%
1 Year42.3%38.4%24.7%19.8%8.1%4.3%
3 Yearn/a16.6%3.0%25.9%14.5%
5 Yearn/a9.8%-10.6%53.9%32.6%

Price Volatility Vs. Market

How volatile is Morgan Stanley's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Morgan Stanley undervalued compared to its fair value and its price relative to the market?

0.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MWD (€51.71) is trading below our estimate of fair value (€51.79)

Significantly Below Fair Value: MWD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MWD is good value based on its PE Ratio (10.6x) compared to the Capital Markets industry average (22.7x).

PE vs Market: MWD is good value based on its PE Ratio (10.6x) compared to the Austrian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: MWD is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: MWD is good value based on its PB Ratio (1.2x) compared to the XE Capital Markets industry average (1.4x).


Next Steps

Future Growth

How is Morgan Stanley forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MWD's forecast earnings growth (2% per year) is above the savings rate (-0.1%).

Earnings vs Market: MWD's earnings (2% per year) are forecast to grow slower than the Austrian market (9.9% per year).

High Growth Earnings: MWD's earnings are forecast to grow, but not significantly.

Revenue vs Market: MWD's revenue (1.8% per year) is forecast to grow slower than the Austrian market (2.7% per year).

High Growth Revenue: MWD's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MWD's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Morgan Stanley performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MWD has high quality earnings.

Growing Profit Margin: MWD's current net profit margins (20.6%) are higher than last year (20.5%).


Past Earnings Growth Analysis

Earnings Trend: MWD's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: MWD's earnings growth over the past year (3.5%) is below its 5-year average (17.3% per year).

Earnings vs Industry: MWD earnings growth over the past year (3.5%) underperformed the Capital Markets industry 3.7%.


Return on Equity

High ROE: MWD's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Morgan Stanley's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MWD has a low level of unsold assets or inventory.

Debt Coverage by Assets: MWD's debt is covered by short term assets (assets are 2.5x debt).


Financial Institutions Analysis

Asset Level: MWD's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if MWD has a sufficient allowance for bad loans.

Low Risk Liabilities: MWD reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MWD has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MWD has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MWD has an appropriate level of bad loans.


Next Steps

Dividend

What is Morgan Stanley's current dividend yield, its reliability and sustainability?

2.52%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.6%markettop25%4.5%industryaverage3.1%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: MWD's dividend (2.51%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: MWD's dividend (2.51%) is low compared to the top 25% of dividend payers in the Austrian market (4.47%).


Stability and Growth of Payments

Stable Dividend: MWD's dividends per share have been stable in the past 10 years.

Growing Dividend: MWD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.6%), MWD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MWD's dividends in 3 years are forecast to be well covered by earnings (29.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

James Gorman (61yo)

10.1yrs

Tenure

US$28,168,639

Compensation

Mr. James Patrick Gorman serves as the Chairman of the Board and Chief Executive Officer of Morgan Stanley Domestic Holdings, Inc. He became CEO in January 2010 and Chairman in January 2012 of the Company. ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD28.17M) is above average for companies of similar size in the Austrian market ($USD3.59M).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Gorman
Chairman & CEO10.1yrsUS$28.17m0.091% $75.0m
Jonathan Pruzan
CFO & Executive VP4.8yrsUS$14.71m0.012% $10.1m
Eric Grossman
Chief Legal Officer & Executive VP7.2yrsUS$12.70m0.018% $14.5m
Thomas Kelleher
Senior Advisor0.7yrsUS$24.12m0.061% $50.1m
Daniel Simkowitz
Head of Investment Management6.9yrsUS$15.27m0.014% $11.4m
Jason Tarantino
Managing Director0yrsno datano data
Richard Brown
President0yrsno datano data
Robert Rooney
Head of Technology0.8yrsno data0.014% $11.7m
Michael Wilson
Chief U.S. Equity Strategist & Chief Investment Officer0yrsno datano data
Paul Wirth
Principal Accounting Officer14.2yrsno data0.0097% $7.9m

5.8yrs

Average Tenure

57yo

Average Age

Experienced Management: MWD's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Gorman
Chairman & CEO10.1yrsUS$28.17m0.091% $75.0m
Jason Tarantino
Managing Director0yrsno datano data
Shelley O'Connor
Chairman & CEO - Morgan Stanley Private Bank0.8yrsno datano data
Sammy Kayello
Chairman and CEO of Morgan Stanley Middle East and North Africa0yrsno datano data
Thomas Glocer
Independent Lead Director2.4yrsUS$397.50k0.00028% $230.4k
Hutham Olayan
Independent Director13.8yrsUS$346.67k0.00050% $411.4k
Rayford Wilkins
Independent Director6.5yrsUS$357.50k0.0032% $2.6m
Perry Traquina
Independent Director4.8yrsUS$368.33k0.0028% $2.3m
Nobuyuki Hirano
Non-Management Director4.3yrsno datano data
Robert Herz
Independent Director7.6yrsUS$368.33k0.0044% $3.6m

5.6yrs

Average Tenure

65yo

Average Age

Experienced Board: MWD's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MWD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Morgan Stanley's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Morgan Stanley
  • Ticker: MWD
  • Exchange: WBAG
  • Founded: 1924
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$89.009b
  • Listing Market Cap: US$82.280b
  • Shares outstanding: 1.59b
  • Website: https://www.morganstanley.com

Number of Employees


Location

  • Morgan Stanley
  • 1585 Broadway
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1992
MS *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1992
DWDDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
DWDXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1992
MSSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDJan 1992
MSSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1992
MST-UETLX (Eurotlx)YesCommon SharesITEURJan 1992
0QYULSE (London Stock Exchange)YesCommon SharesGBUSDJan 1992
MWDWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1992
MS.PRANYSE (New York Stock Exchange)PFD A 1/1000USUSDJun 2006
MSZZOTCPK (Pink Sheets LLC)BUY WRITE SECSUSUSDJun 2007
MSDYOTCUS (Other "Grey Market" OTC)PFD DYNAMIC 14USUSDDec 2007
SLZARCA (NYSE Arca)NT S&P IDX2009USUSDJun 2008
BTQARCA (NYSE Arca)PLUS S&P500 10USUSDDec 2008
MSBR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLAug 2012
MS.PRENYSE (New York Stock Exchange)DEP SHS 1/1000 EUSUSDSep 2013
MS.PRFNYSE (New York Stock Exchange)DEP SHS 1/1000THUSUSDDec 2013
MS.PRINYSE (New York Stock Exchange)DEP FIX/FLTUSUSDSep 2014
MS0KQSDB (Deutsche Boerse AG)5.55%-FRN PERP USD 'J'DEUSDMar 2015
MS.PRKNYSE (New York Stock Exchange)NONCM DEP PFD KUSUSDJan 2017
DWDWBST (Boerse-Stuttgart)5.45%-FRN SUB PERP USD 'H'DEUSDJun 2017
MSLQ.LOTCPK (Pink Sheets LLC)4.875 DP RP SR LUSUSDNov 2019

Biography

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. The company operates through Institutional Securities, Wealth Management, and Investment Management segments. The Institutional Securities segment offers capital raising and financial advisory services, including services related to the underwriting of debt, equity, and other securities, as well as advice on mergers and acquisitions, restructurings, real estate, and project finance. This segment also provides sales and trading services, such as sales, financing, prime brokerage, and market-making services in equity and fixed income products consisting of foreign exchange and commodities; corporate loans, commercial mortgage lending, and asset-backed lending; financing for sales and trading customers; and investment and research services. The Wealth Management segment offers various financial services and solutions covering brokerage and investment advisory services, financial and wealth planning services, annuity and insurance products, securities-based lending, residential real estate loans and other lending products, and banking and retirement plan services to individual investors and small to medium-sized businesses and institutions. The Investment Management segment provides various investment strategies and products comprising equity, fixed income, liquidity, and alternative/other products to defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, and third-party fund sponsors and corporations through a network of institutional and intermediary channels. Morgan Stanley was founded in 1924 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:26
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.