NYSE:MS

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.

Snowflake

Fundamentals

Average 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


Market Performance


7 Day Return

6.5%

MS

2.4%

US Capital Markets

1.0%

US Market


1 Year Return

-0.3%

MS

4.8%

US Capital Markets

8.0%

US Market

Return vs Industry: MS underperformed the US Capital Markets industry which returned 4.8% over the past year.

Return vs Market: MS underperformed the US Market which returned 8% over the past year.


Shareholder returns

MSIndustryMarket
7 Day6.5%2.4%1.0%
30 Day3.0%-1.8%-0.07%
90 Day-0.3%-2.2%-1.0%
1 Year2.5%-0.3%7.1%4.8%10.4%8.0%
3 Year44.3%34.8%52.4%43.8%46.2%36.7%
5 Year47.1%32.5%77.3%61.1%64.3%46.2%

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?

9.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MS ($44.98) is trading above our estimate of fair value ($32.99)

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 (9.5x) compared to the Capital Markets industry average (31.8x).

PE vs Market: MS is good value based on its PE Ratio (9.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: MS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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 (6.3x).


Next Steps

Future Growth

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

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MS's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: MS's earnings are forecast to decline over the next 3 years (-1.7% per year).

High Growth Earnings: MS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MS's revenue (0.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MS's revenue (0.7% 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 (10.9%).


Next Steps

Past Performance

How has Morgan Stanley performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MS's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: MS's earnings growth over the past year (6.1%) is below its 5-year average (16.2% per year).

Earnings vs Industry: MS earnings growth over the past year (6.1%) underperformed the Capital Markets industry 29.3%.


Return on Equity

High ROE: MS's Return on Equity (10.2%) is considered low.


Return on Assets

ROA vs Industry: MS's Return on Assets is below or equal to the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate MS's Return on Capital Employed to determine if it has improved over the past 3 years.


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: MS has a low level of unsold assets or inventory.

Debt Coverage by Assets: MS's debt is covered by short term assets (assets are 2.416150x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.11%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MS's dividend (3.11%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MS's dividend (3.11%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: MS's dividend payments have been volatile 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 reasonably low payout ratio (27.4%), 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 (30.3% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Diversified Financials industry.

Management

What is the CEO of Morgan Stanley's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

James Gorman (61yo)

9.8yrs

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 ($USD28.17M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

5.5yrs

Average Tenure

57yo

Average Age

Experienced Management: MS's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

62yo

Average Age

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$332,97922 Apr 19
Daniel Simkowitz
EntityIndividual
Role
Senior Key Executive
Head of Investment Management
Shares7,000
Max PriceUS$47.57
SellUS$1,060,07328 Feb 19
Paul Wirth
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares25,000
Max PriceUS$42.40
SellUS$675,15223 Jan 19
Jeffrey Brodsky
EntityIndividual
Shares15,565
Max PriceUS$43.38

Ownership Breakdown


Management Team

  • James Gorman (61yo)

    Chairman & CEO

    • Tenure: 9.8yrs
    • Compensation: US$28.17m
  • Paul Wirth (61yo)

    Principal Accounting Officer

    • Tenure: 13.8yrs
  • Jon Pruzan (50yo)

    CFO & Executive VP

    • Tenure: 4.4yrs
    • Compensation: US$14.71m
  • Eric Grossman (52yo)

    Chief Legal Officer & Executive VP

    • Tenure: 6.8yrs
    • Compensation: US$12.70m
  • Colm Kelleher (62yo)

    Senior Advisor

    • Tenure: 0.3yrs
    • Compensation: US$24.12m
  • Dan Simkowitz (53yo)

    Head of Investment Management

    • Tenure: 6.6yrs
    • Compensation: US$15.27m
  • Rob Rooney

    Head of Technology

    • Tenure: 0.4yrs
  • Mike Wilson

    Chief U.S. Equity Strategist & Chief Investment Officer

    • Tenure: 0yrs
  • Jason Tarantino

    Managing Director

    • Tenure: 0yrs
  • Richard Brown

    President

    • Tenure: 0yrs

Board Members

  • Tom Glocer (60yo)

    Independent Lead Director

    • Tenure: 2.1yrs
    • Compensation: US$397.50k
  • Hutham Olayan (65yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$346.67k
  • James Gorman (61yo)

    Chairman & CEO

    • Tenure: 9.8yrs
    • Compensation: US$28.17m
  • Ray Wilkins (68yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$357.50k
  • Perry Traquina (62yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$368.33k
  • Jami Miscik (60yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$357.50k
  • Bob Herz (65yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$368.33k
  • Shelley O’Connor

    Chairman & CEO - Morgan Stanley Private Bank

    • Tenure: 0.4yrs
  • Sammy Kayello

    Chairman and CEO of Morgan Stanley Middle East and North Africa

    • Tenure: 0yrs
  • Jason Tarantino

    Managing Director

    • Tenure: 0yrs

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$73.048b
  • Shares outstanding: 1.62b
  • 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
MSSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDJan 1992
MSNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1992
DWDDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
0QYULSE (London Stock Exchange)YesCommon SharesGBUSDJan 1992
DWDXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1992
MS *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 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.PRGNYSE (New York Stock Exchange)DEP 1/1000 PFD GUSUSDApr 2014
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)SH NONCM PFD KUSUSDJan 2017
DWDWBST (Boerse-Stuttgart)5.45%-FRN SUB PERP USD 'H'DEUSDJun 2017

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 Analysis2019/10/21 23:40
End of Day Share Price2019/10/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.