Morgan Stanley (NYSE:MS) - Share price, News & Analysis

MS fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	3/6
Financial Health	4/6
Dividends	4/6

MS Stock Overview

Rewards

Trading at 45.4% below our estimate of its fair value

Earnings are forecast to grow 5.51% per year

Earnings have grown 18.9% per year over the past 5 years

Risk Analysis

Dividend of 3.53% is not well covered by earnings

Morgan Stanley Competitors

Charles Schwab

NYSE:SCHW

US$120.0b

Interactive Brokers Group

NasdaqGS:IBKR

US$23.7b

Raymond James Financial

NYSE:RJF

US$19.1b

LPL Financial Holdings

NasdaqGS:LPLA

US$14.1b

Price History & Performance

Summary of all time highs, changes and price drops for Morgan Stanley
Historical stock prices
Current Share Price	US$79.37
52 Week High	US$109.73
52 Week Low	US$76.75
Beta	1.41
1 Month Change	-10.73%
3 Month Change	-16.82%
1 Year Change	-10.15%
3 Year Change	84.75%
5 Year Change	85.27%
Change since IPO	924.13%

Recent News & Updates

May 04

Simplest Call Today: Morgan Stanley - Inflation Hedge

Morgan Stanley hit a high of $109.73 within the last year and is now trading in the mid-$80s. The dividend is growing, and they are financially stable and should be able to continue to raise the dividend. I bought 200 shares. I will keep 100 shares and I sold a call on the other lot. This strategy allows me to milk this position for more income, while still improving my basic portfolio. I may repeat this trade in the next few weeks should MS go down more and test its 52-week low of $80.

Shareholder Returns

	MS	US Capital Markets	US Market
7D	-1.5%	-0.8%	-2.7%
1Y	-10.2%	-14.6%	-12.9%

Return vs Industry: MS exceeded the US Capital Markets industry which returned -14.6% over the past year.

Return vs Market: MS exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is MS's price volatile compared to industry and market?
MS volatility
MS Average Weekly Movement	5.1%
Capital Markets Industry Average Movement	0.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: MS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MS's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1924	77,000	James Gorman	https://www.morganstanley.com

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. It 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.

Morgan Stanley Fundamentals Summary

How do Morgan Stanley's earnings and revenue compare to its market cap?
MS fundamental statistics
Market Cap	US$138.84b
Earnings (TTM)	US$14.13b
Revenue (TTM)	US$58.84b

9.8x

P/E Ratio

2.4x

P/S Ratio

Is MS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MS income statement (TTM)
Revenue	US$58.84b
Cost of Revenue	US$6.53b
Gross Profit	US$52.31b
Other Expenses	US$38.18b
Earnings	US$14.13b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 14, 2022

Earnings per share (EPS)	8.08
Gross Margin	88.90%
Net Profit Margin	24.01%
Debt/Equity Ratio	341.4%

How did MS perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

35%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

45.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MS ($79.37) is trading below our estimate of fair value ($145.31)

Significantly Below Fair Value: MS is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: MS is good value based on its PE Ratio (9.8x) compared to the US Capital Markets industry average (33x).

PE vs Market: MS is good value based on its PE Ratio (9.8x) compared to the US market (15.3x).

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 overvalued based on its PB Ratio (1.5x) compared to the US Capital Markets industry average (-17.2x).

Future Growth

How is Morgan Stanley forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

5.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MS's forecast earnings growth (5.5% per year) is above the savings rate (1.9%).

Earnings vs Market: MS's earnings (5.5% per year) are forecast to grow slower than the US market (12.5% per year).

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

Revenue vs Market: MS's revenue (4% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: MS's revenue (4% 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 (15.7%).

Past Performance

How has Morgan Stanley performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MS has high quality earnings.

Growing Profit Margin: MS's current net profit margins (24%) are higher than last year (23.6%).

Past Earnings Growth Analysis

Earnings Trend: MS's earnings have grown by 18.9% per year over the past 5 years.

Accelerating Growth: MS's earnings growth over the past year (9.6%) is below its 5-year average (18.9% per year).

Earnings vs Industry: MS earnings growth over the past year (9.6%) underperformed the Capital Markets industry 98.3%.

Return on Equity

High ROE: MS's Return on Equity (14.1%) is considered low.

Financial Health

How is Morgan Stanley's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MS's short term assets ($1,002.8B) exceed its short term liabilities ($518.1B).

Long Term Liabilities: MS's short term assets ($1,002.8B) exceed its long term liabilities ($600.0B).

Debt to Equity History and Analysis

Debt Level: MS has more cash than its total debt.

Reducing Debt: MS's debt to equity ratio has reduced from 364.2% to 341.4% over the past 5 years.

Debt Coverage: MS's debt is not well covered by operating cash flow (2.1%).

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

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.53%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MS's dividend (3.53%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: MS's dividend (3.53%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.1%), MS's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (100%), MS's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

0.9yrs

Average management tenure

CEO

James Gorman (63 yo)

12.33yrs

Tenure

US$34,941,635

Compensation

Mr. James Patrick Gorman serves as the Chairman of the Board and Chief Executive Officer of Morgan Stanley Domestic Holdings, Inc. He has been Chief Executive Officer and Director of Morgan Stanley since J...

CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD34.94M) is above average for companies of similar size in the US market ($USD13.34M).

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

Leadership Team

Experienced Management: MS's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: MS's board of directors are considered experienced (7 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31