NYSE:MS

Stock Analysis Report

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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.


Snowflake Analysis

Established dividend payer and fair 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: MS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

MS

-1.0%

US Capital Markets

2.2%

US Market


1 Year Return

19.5%

MS

5.6%

US Capital Markets

16.2%

US Market

Return vs Industry: MS exceeded the US Capital Markets industry which returned 5.8% over the past year.

Return vs Market: MS exceeded the US Market which returned 15.9% over the past year.


Shareholder returns

MSIndustryMarket
7 Day-2.0%-1.0%2.2%
30 Day3.1%1.0%4.9%
90 Day32.1%13.5%17.8%
1 Year23.1%19.5%7.7%5.6%18.7%16.2%
3 Year11.1%2.8%21.4%14.1%41.1%32.0%
5 Year46.6%29.9%56.1%41.2%74.5%55.7%

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

Valuation

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

8.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MS ($49.26) is trading above our estimate of fair value ($33.69)

Significantly Below Fair Value: MS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MS is good value based on its PE Ratio (8.8x) compared to the US Capital Markets industry average (28.7x).

PE vs Market: MS is good value based on its PE Ratio (8.8x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: MS is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: MS is good value based on its PB Ratio (1x) compared to the US Capital Markets industry average (8.6x).


Next Steps

Future Growth

How is Morgan Stanley forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MS's forecast earnings growth (4.8% per year) is above the savings rate (2.2%).

Earnings vs Market: MS's earnings (4.8% per year) are forecast to grow slower than the US market (22.4% per year).

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

Revenue vs Market: MS's revenue (1.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: MS's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MS's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Morgan Stanley performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MS has high quality earnings.

Growing Profit Margin: MS's current net profit margins (20.1%) are higher than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: MS's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: MS's earnings growth over the past year (13.4%) is below its 5-year average (15.3% per year).

Earnings vs Industry: MS earnings growth over the past year (13.4%) underperformed the Capital Markets industry 16.6%.


Return on Equity

High ROE: MS's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

How is Morgan Stanley's financial position?


Financial Position Analysis

Short Term Liabilities: MS's short term assets ($802.6B) exceed its short term liabilities ($434.7B).

Long Term Liabilities: MS's short term assets ($802.6B) exceed its long term liabilities ($425.8B).


Debt to Equity History and Analysis

Debt Level: MS's debt to equity ratio (345.6%) is considered high.

Reducing Debt: MS's debt to equity ratio has reduced from 393.7% to 345.6% over the past 5 years.

Debt Coverage: MS's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: Insufficient data to determine if MS's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

2.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MS's dividend (2.84%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: MS's dividend (2.84%) is low compared to the top 25% of dividend payers in the US market (4.54%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (25%), MS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MS's dividends in 3 years are forecast to be well covered by earnings (29.2% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

James Gorman (62 yo)

10.58yrs

Tenure

US$31,642,395

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 of Morgan Stanley in January 2010 and the Chairman in Januar ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD31.64M) is above average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Gorman
Chairman & CEO10.58yrsUS$31.64m0.076%
$ 59.3m
Jonathan Pruzan
CFO, Head of Corporate Strategy & Executive VP5.25yrsUS$13.30m0.0071%
$ 5.5m
Robert Rooney
Head of Technology1.33yrsUS$9.72m0.013%
$ 10.4m
Eric Grossman
Chief Legal Officer & Executive VP9.92yrsUS$10.94m0.016%
$ 12.4m
Daniel Simkowitz
Head of Investment Management7.42yrsUS$14.46m0.0084%
$ 6.6m
Jason Tarantino
Managing Directorno datano datano data
Richard Brown
Presidentno datano datano data
Michael Wilson
Chief U.S. Equity Strategist & Chief Investment Officerno datano datano data
Raja Akram
Chief Accounting Officer0.25yrno data0.0035%
$ 2.7m
Sarah McDaniel
MD and Head of Wealth Strategies Group & Advanced Planning Centersno datano datano data
Marc Sgaraglino
Managing Directorno datano datano data
Jonathan Daplyn
Head Prime Brokerage Technologyno datano datano data

5.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: MS's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Gorman
Chairman & CEO10.58yrsUS$31.64m0.076%
$ 59.3m
Jason Tarantino
Managing Directorno datano datano data
Shelley O'Connor
Chairman & CEO - Morgan Stanley Private Bank1.25yrsno datano data
Sammy Kayello
Chairman and CEO of Morgan Stanley Middle East and North Africano datano datano data
Thomas Glocer
Independent Lead Director2.92yrsUS$410.00k0.0054%
$ 4.2m
Hutham Olayan
Independent Director14.33yrsUS$355.00k0.00051%
$ 397.5k
Rayford Wilkins
Independent Director7yrsUS$370.00k0.0036%
$ 2.8m
Dennis Nally
Independent Director3.83yrsUS$360.00k0.0018%
$ 1.4m
Perry Traquina
Independent Director5.25yrsUS$385.00kno data
Nobuyuki Hirano
Non-Management Director4.75yrsno datano data
Judith Miscik
Independent Director5.75yrsUS$370.00k0.0029%
$ 2.3m
Robert Herz
Independent Director8.08yrsUS$385.00k0.0049%
$ 3.8m

5.5yrs

Average Tenure

66yo

Average Age

Experienced Board: MS's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MS 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: MS
  • Exchange: NYSE
  • Founded: 1924
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$77.932b
  • Shares outstanding: 1.58b
  • 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
653571SWX (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
MSBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDJan 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)ALT TIER I PERPDEUSDMar 2015
MS.PRKNYSE (New York Stock Exchange)NONCM DEP PFD KUSUSDJan 2017
DWDWBST (Boerse-Stuttgart)5.45%-FRN SUB PERP USD 'H'DEUSDJun 2017
MS.PRLNYSE (New York Stock Exchange)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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 23:37
End of Day Share Price2020/08/04 00:00
Earnings2020/06/30
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.