10Y annualized return is
very good
at 12.0% per year
MS has met or exceeded earnings expectations in
most
recent quarters (9/10)
Reasonable Price-to-Earnings Ratio
Attractive Price-to-Book Ratio
Strong Operating and Net Profit Margins
Good Return on Equity
No Debt on Balance Sheet
🏦 Strong Financial Performance
🔗 Integrated Firm Strategy
📈 Strong Market Position
🚀 Growth Opportunities in Wealth Management
🌍 Diverse Investment Management Strategy
📈 Expected Recovery in Investment Banking
Negative Price-to-Cash-Flow Ratio
High EV to EBITDA Ratio
Negative Free Cash Flow
Liquidity Ratios Indicate Weakness
⚠️ Geopolitical Risks
📉 Dependency on Market Conditions
Morgan Stanley demonstrates strong overall business quality with a robust financial performance and a well-defined integrated strategy that positions it favorably in the market. However, geopolitical and market risks pose challenges. Future growth prospects appear bright, driven by strong wealth management and investment banking pipelines, yet they remain dependent on market conditions.
Analysis Date: January 16, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Morgan Stanley is a big financial company that helps people and organizations manage their money. They offer services like investment advice, helping businesses raise money, and planning for retirement. They work with individuals, small businesses, and large corporations around the world, guiding them on how to invest their money wisely and achieve their financial goals. Founded in 1924 and based in New York, Morgan Stanley is known for its expertise in finance.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$217.02
Current Market Price: $96.24
IV/P Ratio: 2.25x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
56.00000000000001%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for MS
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (12.47)
P/B ratio ≤ 1.5 (1.60)
Current ratio ≥ 2.0 (0.66x)
Long-term debt < Net current assets (-1.15x)
Margin of safety (56.00000000000001%)
MS does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
With an operating profit margin of 46.94% and a net profit margin of 22.55%, the company demonstrates strong profitability relative to its revenues.
The return on equity of 13.12% indicates that the company is effectively using equity investments to generate profits.
The free cash flow per share is -4.62, indicating that the company is currently burning cash rather than generating it, which is a significant concern for sustainability.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
13.13%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
86.67%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
22.55%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
With a debt-to-equity ratio of 0.0, the company is not leveraging debt, which is a strong indicator of financial stability.
The current ratio, quick ratio, and cash ratio are all at 0.0, suggesting a lack of liquidity and potential difficulties in meeting short-term obligations.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
3.42x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.66x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Morgan Stanley reported record revenues and earnings per share, with a total revenue of $61.8 billion for 2024 and a fourth quarter EPS of $2.22. This indicates strong financial health and effective cost management strategies.
Morgan Stanley's integrated firm strategy emphasizes the synergy between wealth management and institutional securities, which enhances client services and drives revenue growth. The firm aims to deliver holistic financial solutions, demonstrating a commitment to client-centric services.
The firm has consistently gained market share, with a wallet share increase of nearly 100 basis points in institutional securities. This highlights Morgan Stanley's competitive advantage and its ability to capture client share in a growing market.
Morgan Stanley faces significant geopolitical uncertainties that could impact its global operations and market performance. These risks could affect client confidence and investment decisions.
Morgan Stanley's wealth management segment is on track for significant growth, with net new assets of $250 billion in 2024 and a target of reaching $10 trillion in total client assets. The firm's focus on advisor-led channels and expanding relationships indicates strong future growth potential.
The firm is investing heavily in secular growth areas like alternatives and customized portfolios, which are expected to enhance revenue streams and diversify risk. Their parametric platform has grown to $575 billion, showcasing innovation in investment management.
With a healthy M&A pipeline and improving market conditions, Morgan Stanley is well-positioned for a rebound in investment banking activities. The firm anticipates increased deal-making activity, which could significantly boost revenues in 2025.
Morgan Stanley's performance is closely tied to market conditions and interest rate dynamics. Any downturns or volatility in the markets could negatively impact revenues and client engagement.