Morgan Stanley Direct Lending Fund Fundamental Analysis (NYSE: MSDL)
Morgan Stanley Direct Lending Fund Fundamental Analysis (NYSE: MSDL)
Morgan Stanley Direct Lending Fund (NYSE: MSDL) shows moderate financial fundamentals with a PE ratio of 22.38, profit margin of 19.45%, and ROE of 3.48%. The company generates $0.3B in annual revenue with strong year-over-year growth of 16.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MSDL's fundamental strength across five key dimensions:
Efficiency Score
WeakMSDL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMSDL trades at attractive valuation levels.
Growth Score
ModerateMSDL shows steady but slowing expansion.
Financial Health Score
ModerateMSDL shows balanced financial health with some risks.
Profitability Score
ModerateMSDL maintains healthy but balanced margins.
Key Financial Metrics
Is MSDL Expensive or Cheap?
P/E Ratio
MSDL trades at 22.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MSDL's PEG of -0.35 indicates potential undervaluation.
Price to Book
The market values Morgan Stanley Direct Lending Fund at 0.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.88 times EBITDA. This is generally considered low.
How Well Does MSDL Make Money?
Net Profit Margin
For every $100 in sales, Morgan Stanley Direct Lending Fund keeps $19.45 as profit after all expenses.
Operating Margin
Core operations generate 50.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.48 in profit for every $100 of shareholder equity.
ROA
Morgan Stanley Direct Lending Fund generates $1.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Morgan Stanley Direct Lending Fund generates strong operating cash flow of $282.95M, reflecting robust business health.
Free Cash Flow
Morgan Stanley Direct Lending Fund generates strong free cash flow of $282.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.34 in free cash annually.
FCF Yield
MSDL converts 21.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How MSDL Stacks Against Its Sector Peers
| Metric | MSDL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.38 | 21.28 | Neutral |
| ROE | 3.48% | 667.00% | Weak |
| Net Margin | 19.45% | -489.00% (disorted) | Strong |
| Debt/Equity | 1.20 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.23 | 911.52 | Neutral |
| ROA | 1.61% | 4469169.00% | Weak |
MSDL outperforms its industry in 1 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 Direct Lending Fund's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1568.01%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
575.00%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
1127.82%
Industry Style: Value, Dividend, Cyclical
High Growth