Morgan Stanley
Morgan Stanley Fundamental Analysis
Morgan Stanley (MS-PI) shows strong financial fundamentals with a PE ratio of 14.42, profit margin of 14.66%, and ROE of 15.45%. The company generates $195.2B in annual revenue with strong year-over-year growth of 16.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MS-PI's fundamental strength across five key dimensions:
Efficiency Score
WeakMS-PI struggles to generate sufficient returns from assets.
Valuation Score
ModerateMS-PI shows balanced valuation metrics.
Growth Score
ExcellentMS-PI delivers strong and consistent growth momentum.
Financial Health Score
ModerateMS-PI shows balanced financial health with some risks.
Profitability Score
WeakMS-PI struggles to sustain strong margins.
Key Financial Metrics
Is MS-PI Expensive or Cheap?
P/E Ratio
MS-PI trades at 14.42 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MS-PI's PEG of 3.09 indicates potential overvaluation.
Price to Book
The market values Morgan Stanley at 2.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.44 times EBITDA. This is generally considered low.
How Well Does MS-PI Make Money?
Net Profit Margin
For every $100 in sales, Morgan Stanley keeps $14.66 as profit after all expenses.
Operating Margin
Core operations generate 19.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.45 in profit for every $100 of shareholder equity.
ROA
Morgan Stanley generates $1.19 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 $-30.37B, signaling weaker underlying cash strength.
Free Cash Flow
Morgan Stanley generates weak or negative free cash flow of $-30.37B, restricting financial flexibility.
FCF Per Share
Each share generates $-11.39 in free cash annually.
FCF Yield
MS-PI converts -7.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How MS-PI Stacks Against Its Sector Peers
| Metric | MS-PI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.42 | 18.50 | Better (Cheaper) |
| ROE | 15.45% | 809.00% | Weak |
| Net Margin | 14.66% | 2211.00% | Weak |
| Debt/Equity | 4.26 | 0.90 | Weak (High Leverage) |
| Current Ratio | 1.17 | 691.82 | Neutral |
| ROA | 1.19% | -24320.00% (disorted) | Weak |
MS-PI outperforms its industry in 1 out of 6 key metrics, 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
168.49%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
50.51%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-96.60%
Industry Style: Value, Dividend, Cyclical
Declining