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Morgan Stanley

NYSE:MS
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MS
NYSE
$88B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

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 last earnings update was 81 days ago. More info.


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MS Share Price and Events
Price Volatility
MS
Industry
5yr Volatility vs Market

Value

 Is Morgan Stanley undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Morgan Stanley to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Morgan Stanley.

NYSE:MS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 15 analysts.
= Stable Book Value * Return on Equity
= $43.40 * 12.08%
$5.24
Book Value of Equity per Share Weighted future Book Value estimates from 16 analysts. $43.40
Discount Rate (Cost of Equity) See below 11.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.81 (1 + (1- 21%) (335.35%))
1.157
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.157 * 7.05%)
11.11%

Discounted Cash Flow Calculation for NYSE:MS using Excess Returns Model Model

The calculations below outline how an intrinsic value for Morgan Stanley is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:MS Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.08% – 11.11%) * $43.40)
$0.42
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.42 / (11.11% - 2.95%)
$5.14
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $43.40 + $5.14
$48.54
NYSE:MS Discount to Share Price
Calculation Result
Value per share (USD) From above. $48.54
Current discount Discount to share price of $49.92
= -1 x ($49.92 - $48.54) / $48.54
-2.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Morgan Stanley is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Morgan Stanley's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Morgan Stanley's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $3.58
NYSE:MS Share Price ** NYSE (2018-06-19) in USD $49.92
United States of America Capital Markets Industry PE Ratio Median Figure of 265 Publicly-Listed Capital Markets Companies 16.1x
United States of America Market PE Ratio Median Figure of 7,865 Publicly-Listed Companies 18.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Morgan Stanley.

NYSE:MS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MS Share Price ÷ EPS (both in USD)

= 49.92 ÷ 3.58

13.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Morgan Stanley is good value based on earnings compared to the US Capital Markets industry average.
  • Morgan Stanley is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Morgan Stanley's expected growth come at a high price?
Raw Data
NYSE:MS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
5.2%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 160 Publicly-Listed Capital Markets Companies 1.56x
United States of America Market PEG Ratio Median Figure of 5,963 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:MS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.93x ÷ 5.2%

2.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Morgan Stanley is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Morgan Stanley's assets?
Raw Data
NYSE:MS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $39.19
NYSE:MS Share Price * NYSE (2018-06-19) in USD $49.92
United States of America Capital Markets Industry PB Ratio Median Figure of 408 Publicly-Listed Capital Markets Companies 2.12x
United States of America Market PB Ratio Median Figure of 13,233 Publicly-Listed Companies 1.75x
NYSE:MS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MS Share Price ÷ Book Value per Share (both in USD)

= 49.92 ÷ 39.19

1.27x

* Primary Listing of Morgan Stanley.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Morgan Stanley is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess Morgan Stanley's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Morgan Stanley has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Morgan Stanley expected to grow at an attractive rate?
  • Morgan Stanley's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Morgan Stanley's earnings growth is positive but not above the United States of America market average.
  • Morgan Stanley's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 5.2%
NYSE:MS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 2.5%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 11.3%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 42,755 8,878 12
2019-12-31 41,966 8,580 21
2018-12-31 40,800 8,252 19
NYSE:MS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-31 39,277 8,053 6,322
2017-12-31 37,945 -4,505 5,607
2017-09-30 37,466 -6,894 6,645
2017-06-30 37,178 -18,694 6,473
2017-03-31 36,584 1,296 6,311
2016-12-31 34,631 5,383 5,507
2016-09-30 33,350 19,502 4,758
2016-06-30 32,218 28,435 4,189
2016-03-31 33,111 20,906 4,426
2015-12-31 35,226 -4,463 5,687
2015-09-30 35,093 -14,568 3,189
2015-06-30 36,080 -13,194 3,882

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Morgan Stanley's earnings are expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
  • Morgan Stanley's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Morgan Stanley Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 5.52 6.27 4.55 12.00
2019-12-31 5.13 5.70 4.40 23.00
2018-12-31 4.73 5.19 4.49 21.00
NYSE:MS Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-31 3.58
2017-12-31 3.15
2017-09-30 3.70
2017-06-30 3.58
2017-03-31 3.45
2016-12-31 2.98
2016-09-30 2.55
2016-06-30 2.22
2016-03-31 2.33
2015-12-31 2.98
2015-09-30 1.66
2015-06-30 2.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Morgan Stanley is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Morgan Stanley's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Morgan Stanley has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Morgan Stanley performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Morgan Stanley's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Morgan Stanley has delivered over 20% year on year earnings growth in the past 5 years.
  • Morgan Stanley's 1-year earnings growth is less than its 5-year average (0.2% vs 23.5%)
  • Morgan Stanley's earnings growth has not matched the US Capital Markets industry average in the past year (0.2% vs 14.6%).
Earnings and Revenue History
Morgan Stanley's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Morgan Stanley Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 39,277.00 6,322.00 21,717.00
2017-12-31 37,945.00 5,607.00 21,273.00
2017-09-30 37,466.00 6,645.00 21,059.00
2017-06-30 37,178.00 6,473.00 20,953.00
2017-03-31 36,584.00 6,311.00 20,697.00
2016-12-31 34,631.00 5,507.00 19,901.00
2016-09-30 33,350.00 4,758.00 19,435.00
2016-06-30 32,218.00 4,189.00 18,892.00
2016-03-31 33,111.00 4,426.00 19,380.00
2015-12-31 35,226.00 5,687.00 20,377.00
2015-09-30 35,093.00 3,189.00 21,812.00
2015-06-30 36,080.00 3,882.00 22,546.00
2015-03-31 34,933.00 4,035.00 22,267.00
2014-12-31 33,977.00 3,166.00 22,032.00
2014-09-30 34,150.00 4,951.00 20,868.00
2014-06-30 33,342.00 4,181.00 20,561.00
2014-03-31 33,204.00 3,193.00 20,410.00
2013-12-31 32,493.00 2,698.00 20,308.00
2013-09-30 31,604.00 3,286.00 20,096.00
2013-06-30 28,897.00 1,373.00 20,085.00
2013-03-31 27,222.00 1,070.00 19,470.00
2012-12-31 26,178.00 11.00 19,681.00
2012-09-30 24,639.00 -866.00 19,402.00
2012-06-30 29,200.00 2,313.00 19,077.00
2012-03-31 31,478.00 1,246.00 20,104.00
2011-12-31 32,227.00 2,118.00 20,256.00
2011-09-30 34,176.00 3,021.00 20,393.00
2011-06-30 31,105.00 983.00 20,468.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Morgan Stanley has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Morgan Stanley used its assets less efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • Morgan Stanley's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Morgan Stanley's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Morgan Stanley has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Morgan Stanley's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Morgan Stanley's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Morgan Stanley is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Morgan Stanley's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Morgan Stanley's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Morgan Stanley Company Filings, last reported 2 months ago.

NYSE:MS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 79,489.00 296,356.00 518,912.00
2017-12-31 78,466.00 300,564.00 532,197.00
2017-09-30 80,114.00 301,200.00 565,841.00
2017-06-30 79,967.00 296,718.00 570,963.00
2017-03-31 79,084.00 287,987.00 559,874.00
2016-12-31 77,177.00 276,621.00 511,972.00
2016-09-30 78,462.00 270,680.00 549,477.00
2016-06-30 78,375.00 279,318.00 547,663.00
2016-03-31 77,175.00 265,442.00 497,029.00
2015-12-31 76,184.00 251,366.00 522,019.00
2015-09-30 76,420.00 287,492.00 568,490.00
2015-06-30 76,067.00 299,744.00 554,141.00
2015-03-31 75,466.00 304,843.00 561,228.00
2014-12-31 72,104.00 302,519.00 539,257.00
2014-09-30 74,011.00 277,499.00 427,438.00
2014-06-30 72,201.00 307,565.00 580,186.00
2014-03-31 70,268.00 315,206.00 572,927.00
2013-12-31 69,030.00 382,195.00 585,265.00
2013-09-30 68,241.00 385,039.00 598,540.00
2013-06-30 66,114.00 388,552.00 583,304.00
2013-03-31 70,497.00 384,184.00 592,464.00
2012-12-31 69,737.00 346,959.00 575,564.00
2012-09-30 69,472.00 375,913.00 573,221.00
2012-06-30 71,637.00 361,514.00 594,257.00
2012-03-31 70,592.00 384,701.00 625,362.00
2011-12-31 70,078.00 389,511.00 575,201.00
2011-09-30 70,094.00 400,032.00 652,750.00
2011-06-30 68,143.00 432,343.00 684,131.00
  • Morgan Stanley's level of debt (372.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (545.4% vs 372.8% today).
  • Debt is not well covered by operating cash flow (2.7%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Morgan Stanley's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Morgan Stanley's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Morgan Stanley has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2%
Current annual income from Morgan Stanley dividends. Estimated to be 2.64% next year.
If you bought $2,000 of Morgan Stanley shares you are expected to receive $40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Morgan Stanley's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).
  • Morgan Stanley's dividend is below the markets top 25% of dividend payers in United States of America (4.11%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 213 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5932 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.58 13.00
2019-12-31 1.35 20.00
2018-12-31 1.11 20.00
NYSE:MS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-04-18 1.000 1.902
2018-01-18 1.000 1.812
2017-11-03 1.000 1.937
2017-10-17 1.000 1.988
2017-08-03 1.000 2.128
2017-07-19 1.000 2.129
2017-05-04 0.800 1.822
2017-04-19 0.800 1.849
2017-02-27 0.800 1.829
2017-01-17 0.800 1.807
2016-10-19 0.800 2.031
2016-08-03 0.800 2.564
2016-07-20 0.800 2.781
2016-05-04 0.600 2.277
2016-04-18 0.600 2.218
2016-02-23 0.600 2.385
2016-01-19 0.600 2.465
2015-11-03 0.600 1.858
2015-10-19 0.600 1.835
2015-08-04 0.600 1.760
2015-07-20 0.600 1.520
2015-05-04 0.600 1.546
2015-04-20 0.600 1.610
2015-03-02 0.400 1.106
2015-01-20 0.400 1.124
2014-11-04 0.400 1.097
2014-10-17 0.400 1.172
2014-07-21 0.400 1.191
2014-03-27 0.400 1.289
2014-02-25 0.200 0.637
2014-01-17 0.200 0.664
2013-10-18 0.200 0.655
2013-07-18 0.200 0.734
2013-04-18 0.200 0.820
2013-02-26 0.200 0.900
2013-01-18 0.200 0.866
2012-11-06 0.200 1.112
2012-10-18 0.200 1.144
2012-07-19 0.200 1.292
2012-04-19 0.200 1.389
2012-01-19 0.200 1.058
2011-10-19 0.200 1.268
2011-07-20 0.200 1.205
2011-04-21 0.200 0.857
2011-01-20 0.200 0.703
2010-10-20 0.200 0.760
2010-07-21 0.200 0.769
2010-04-21 0.200 0.757
2010-01-20 0.200 0.694
2009-10-21 0.200 0.634
2009-07-22 0.200 0.669
2009-04-22 0.200 0.734
2008-12-17 1.080 5.409
2008-09-16 1.080 6.732
2008-06-23 1.080 2.845

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Morgan Stanley's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by net profit (3.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by net profit (3.7x coverage).
X
Income/ dividend checks
We assess Morgan Stanley's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Morgan Stanley afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Morgan Stanley has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
James Gorman, image provided by Google.
James Gorman
COMPENSATION $24,509,722
AGE 59
TENURE AS CEO 8.4 years
CEO Bio

Mr. James Patrick Gorman serves as the Chairman of the Board and Chief Executive Officer of Morgan Stanley (the “Company”). He became CEO in January 2010 and Chairman in January 2012 of the Company. He previously served as Co-President of the Company and joined the in February 2006 as President and Chief Operating Officer of the Global Wealth Management Group. Before joining the Company, Mr. Gorman held a succession of executive positions at Merrill Lynch. Prior to this, he was a senior Partner of McKinsey & Co. and began his career as an attorney in Melbourne, Australia. Mr. Gorman serves as a Director of the Federal Reserve Bank of New York and is a Member of the Council on Foreign Relations, the Board of Overseers of the Columbia Business School, the Monetary Authority of Singapore International Advisory Panel, the Business Council and the Board of the Institute of International Finance. He formerly served as President of the Federal Advisory Council to the U.S. Federal Reserve Board, Co-Chairman of the Partnership for New York City, Chairman of the Board of the Securities Industry and Financial Markets Association and Co-Chairman of the Business Committee of the Metropolitan Museum of Art. Mr. Gorman, earned a B.A. and Law degree from the University of Melbourne and an M.B.A. from Columbia University.

CEO Compensation
  • James's compensation has been consistent with company performance over the past year.
  • James's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Morgan Stanley management team in years:

5.4
Average Tenure
59
Average Age
  • The average tenure for the Morgan Stanley management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

James Gorman

TITLE
Chairman & CEO
COMPENSATION
$25M
AGE
59
TENURE
8.4 yrs

Colm Kelleher

TITLE
President
COMPENSATION
$22M
AGE
60
TENURE
2.4 yrs

Jon Pruzan

TITLE
CFO & Executive VP
COMPENSATION
$11M
AGE
48
TENURE
3.1 yrs

Eric Grossman

TITLE
Chief Legal Officer & Executive VP
COMPENSATION
$10M
AGE
50
TENURE
5.5 yrs

Daniel Simkowitz

TITLE
Head of Investment Management
COMPENSATION
$12M
TENURE
5.3 yrs

Mike Wilson

TITLE
Chief U.S. Equity Strategist

Paul Wirth

TITLE
Principal Accounting Officer
AGE
59
TENURE
12.5 yrs

Sarah McDaniel

TITLE
MD and Head of Wealth Strategies Group & Advanced Planning Centers

Marc Sgaraglino

TITLE
Managing Director

Jonathan Daplyn

TITLE
Head Prime Brokerage Technology
Board of Directors Tenure

Average tenure and age of the Morgan Stanley board of directors in years:

4.8
Average Tenure
63
Average Age
  • The tenure for the Morgan Stanley board of directors is about average.
Board of Directors

Sammy Kayello

TITLE
Chairman and CEO of Morgan Stanley Middle East and North Africa

Hutham Olayan

TITLE
Independent Director
COMPENSATION
$345K
AGE
63
TENURE
12.2 yrs

James Gorman

TITLE
Chairman & CEO
COMPENSATION
$25M
AGE
59
TENURE
6.4 yrs

Bob Herz

TITLE
Independent Director
COMPENSATION
$365K
AGE
63
TENURE
5.9 yrs

Ray Wilkins

TITLE
Independent Director
COMPENSATION
$348K
AGE
66
TENURE
4.8 yrs

Jami Miscik

TITLE
Independent Director
COMPENSATION
$348K
AGE
58
TENURE
3.6 yrs

Perry Traquina

TITLE
Independent Director
COMPENSATION
$363K
AGE
60
TENURE
3.1 yrs

Tom Glocer

TITLE
Independent Lead Director
COMPENSATION
$368K
AGE
58
TENURE
0.8 yrs

Nobu Hirano

TITLE
Non-management Director
AGE
66
TENURE
2.6 yrs

Ryosuke Tamakoshi

TITLE
Non-management Director
AGE
70
TENURE
6.9 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess Morgan Stanley's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Morgan Stanley has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

How Morgan Stanley's (NYSE:MS) Earnings Growth Stacks Up Against The Industry

When Morgan Stanley (NYSE:MS) released its most recent earnings update (31 March 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Morgan Stanley's average earnings over the past couple of years, and its industry performance. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 23.51%, indicating the rate at which MS is growing has slowed down

Simply Wall St -

What Did Morgan Stanley's (NYSE:MS) CEO Take Home Last Year?

Profitability of a company is a strong indication of MS's ability to generate returns on shareholders' funds through corporate activities. … In this exercise, I will use profits as a proxy for Gorman's performance. … Accounting for the size of MS in terms of market cap, as well as its performance, using earnings as a proxy, it seems that Gorman is compensated similar to other US CEOs of large-caps, on average.

Simply Wall St -

Is It Time To Buy Morgan Stanley (NYSE:MS) Based Off Its PE Ratio?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for MS Price per share = $51.4 Earnings per share = $3.582 ∴ Price-Earnings Ratio = $51.4 ÷ $3.582 = 14.3x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you are inadvertently comparing lower risk firms with MS, then MS’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

Simply Wall St -

Is Morgan Stanley (NYSE:MS) A Great Dividend Stock?

Morgan Stanley (NYSE:MS) has returned to shareholders over the past 10 years, an average dividend yield of 2.00% annually. … Check out our latest analysis for Morgan Stanley Here's how I find good dividend stocks When researching a dividend stock, I always follow the following screening criteria: Is their annual yield among the top 25% of dividend payers? … In terms of its peers, Morgan Stanley has a yield of 1.92%, which is on the low-side for Capital Markets stocks.Next Steps: Whilst there are few things you may like about Morgan Stanley from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor.

Simply Wall St -

What Does Morgan Stanley's (NYSE:MS) Share Price Indicate?

A question to answer is whether Morgan Stanley's current trading price of $52.07 reflective of the actual value of the large-cap? … It’s trading around 11% above my intrinsic value, which means if you buy Morgan Stanley today, you’d be paying a relatively fair price for it. … And if you believe the company’s true value is $47.01, then there isn’t really any room for the share price grow beyond what it’s currently trading.

Simply Wall St -

Interested In Morgan Stanley (NYSE:MS)? Here's How It Performed Recently

After reading Morgan Stanley's (NYSE:MS) latest earnings update (31 December 2017), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … For Morgan Stanley, its latest earnings (trailing twelve month) is US$5.61B, which compared to the previous year's figure, Since these values are somewhat nearsighted, I’ve computed an annualized five-year value for Morgan Stanley's earnings, which stands at US$3.43B This means that, generally, Morgan Stanley has been able to improve its earnings over the past few years. … This means whatever uplift the industry is enjoying, Morgan Stanley has not been able to gain as much as its average peer.What does this mean?

Simply Wall St -

Is Morgan Stanley's (NYSE:MS) Growth Strong Enough To Justify Its March Share Price?

Morgan Stanley (NYSE:MS) is considered a high-growth stock, but its last closing price of $56.96 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Morgan Stanley is available at price-to-earnings ratio of 18.08x, showing us it is overvalued based on current earnings compared to the capital markets industry average of 16.74x , and undervalued relative to the current US market average of 18.66x. … However, to properly examine the value of a high-growth stock such as Morgan Stanley, we must reflect its earnings growth into the valuation.

Simply Wall St -

An Intrinsic Value Calculation For Morgan Stanley (NYSE:MS) Shows Investors Are Overpaying

Emphasizing factors such as book values, as well as the return and cost of equity, is useful for calculating MS’s valuation. … The returns in excess of cost of equity is called excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (11.84% – 11.30%) * $43.19 = $0.23 Excess Return Per Share is used to calculate the terminal value of MS, which is how much the business is expected to continue to generate over the upcoming years, in perpetuity. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $0.23 / (11.30% – 2.47%) = $2.63 These factors are combined to calculate the true value of MS's stock: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $43.19 + $2.63 = $45.82 Relative to today's price of $57.01, MS is , at this time, trading above what it's actually worth.

Simply Wall St -

Will Morgan Stanley's (NYSE:MS) Earnings Grow In The Years Ahead?

Below, I've laid out key growth figures on how market analysts perceive Morgan Stanley's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … See our latest analysis for Morgan Stanley Analysts' outlook for next year seems buoyant, with earnings climbing by a robust 40.53%. … This means that, we can presume Morgan Stanley will grow its earnings by 10.84% every year for the next few years.

Simply Wall St -

Will Morgan Stanley (NYSE:MS) Continue To Underperform Its Industry?

See our latest analysis for Morgan Stanley Breaking down Return on Equity Return on Equity (ROE) is a measure of Morgan Stanley’s profit relative to its shareholders’ equity. … Since Morgan Stanley’s return does not cover its cost, with a difference of -2.52%, this means its current use of equity is not efficient and not sustainable. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:MS Last Perf Jan 18th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Company Info

Map
Description

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 three segments: Institutional Securities, Wealth Management, and Investment Management. 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, and market-making services in equity securities and fixed income products consisting of foreign exchange and commodities, as well as prime brokerage services; corporate loans, commercial and residential mortgage lending, and asset-backed lending; financing for equities and commodities customers; loans to municipalities; 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, credit and other lending products, and banking and retirement plan services to individual investors and small to medium-sized businesses/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.

Details
Name: Morgan Stanley
MS
Exchange: NYSE
Founded: 1924
$88,371,401,114
1,770,260,439
Website: http://www.morganstanley.com
Address: Morgan Stanley
1585 Broadway,
New York,
New York, 10036,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MS Common Shares New York Stock Exchange US USD 02. Jan 1992
DB DWD Common Shares Deutsche Boerse AG DE EUR 02. Jan 1992
XTRA DWD Common Shares XETRA Trading Platform DE EUR 02. Jan 1992
LSE 0QYU Common Shares London Stock Exchange GB USD 02. Jan 1992
SWX MS Common Shares SIX Swiss Exchange CH CHF 02. Jan 1992
WBAG MWD Common Shares Wiener Boerse AG AT EUR 02. Jan 1992
SNSE MS Common Shares Santiago Stock Exchange CL USD 02. Jan 1992
BMV MS * Common Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1992
NYSE MS.PRK SH NONCM PFD K New York Stock Exchange US USD 25. Jan 2017
NYSE MS.PRI DEP FIX/FLT New York Stock Exchange US USD 16. Sep 2014
NYSE MS.PRG DEP 1/1000 PFD G New York Stock Exchange US USD 24. Apr 2014
NYSE MS.PRF DEP SHS 1/1000TH New York Stock Exchange US USD 09. Dec 2013
NYSE MS.PRE DEP SHS 1/1000 E New York Stock Exchange US USD 26. Sep 2013
OTCUS MSDY PFD DYNAMIC 14 Other "Grey Market" OTC US USD 26. Dec 2007
OTCPK MSZZ BUY WRITE SECS Pink Sheets LLC US USD 22. Jun 2007
ARCA BTQ PLUS S&P500 10 NYSE Arca US USD 26. Dec 2008
ARCA SLZ NT S&P IDX2009 NYSE Arca US USD 24. Jun 2008
BOVESPA MSBR34 BDR EACH REPR 1 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2012
BST DWDW DEP SH REPR 1/25TH FIX/FLTG PRF H Boerse-Stuttgart DE USD 23. Apr 2014
Number of employees
Current staff
Staff numbers
57,810
Morgan Stanley employees.
Industry
Investment Banking and Brokerage
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/06/20 21:44
End of day share price update: 2018/06/19 00:00
Last estimates confirmation: 2018/06/19
Last earnings update: 2018/03/31
Last annual earnings update: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.