Morgan Stanley Fundamental Analysis (XETRA: DWD.DE)
Morgan Stanley Fundamental Analysis (XETRA: DWD.DE)
Morgan Stanley (XETRA: DWD.DE) shows moderate financial fundamentals with a PE ratio of 16.19, profit margin of 15.36%, and ROE of 17.82%. The company generates $151.5B in annual revenue with strong year-over-year growth of 11.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DWD.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakDWD.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDWD.DE trades at attractive valuation levels.
Growth Score
ExcellentDWD.DE delivers strong and consistent growth momentum.
Financial Health Score
WeakDWD.DE carries high financial risk with limited liquidity.
Profitability Score
ModerateDWD.DE maintains healthy but balanced margins.
Key Financial Metrics
Is DWD.DE Expensive or Cheap?
P/E Ratio
DWD.DE trades at 16.19 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DWD.DE's PEG of 0.35 indicates potential undervaluation.
Price to Book
The market values Morgan Stanley at 2.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.72 times EBITDA. This is generally considered low.
How Well Does DWD.DE Make Money?
Net Profit Margin
For every $100 in sales, Morgan Stanley keeps $15.36 as profit after all expenses.
Operating Margin
Core operations generate 19.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.82 in profit for every $100 of shareholder equity.
ROA
Morgan Stanley generates $1.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Morgan Stanley generates limited operating cash flow of $-32.21B, signaling weaker underlying cash strength.
Free Cash Flow
Morgan Stanley generates weak or negative free cash flow of $-34.62B, restricting financial flexibility.
FCF Per Share
Each share generates $-22.02 in free cash annually.
FCF Yield
DWD.DE converts -9.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How DWD.DE Stacks Against Its Sector Peers
| Metric | DWD.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.19 | 20.75 | Better (Cheaper) |
| ROE | 17.82% | 644.00% | Weak |
| Net Margin | 15.36% | -1529.00% (disorted) | Strong |
| Debt/Equity | 4.51 | 0.88 | Weak (High Leverage) |
| Current Ratio | 0.76 | 830.27 | Weak Liquidity |
| ROA | 1.20% | -577.00% (disorted) | Weak |
DWD.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Morgan Stanley's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
136.18%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
56.46%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
298.15%
Industry Style: Value, Dividend, Cyclical
High Growth