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Morgan Stanley MS

Morningstar Rating
$85.85 +0.39 (0.46%)
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Company Report

Morgan Stanley Earnings: Outlook Generally Positive, but Some Growth Drivers Could Fade

Investment banking activity is likely to liven up in 2024, but previous growth drivers at Morgan Stanley may not participate. For 2023, Morgan Stanley reported net income to common shareholders of $8.5 billion, or $5.18 per diluted share, on $54 billion of net revenue. Net revenue increased 1% from the previous year as higher trading revenue offset decreases in net interest income and investment banking. We don’t anticipate making a material change to our $88 fair value estimate for narrow-moat-rated Morgan Stanley and assess the shares as fairly valued.

Price vs Fair Value

MS is trading at a 2% discount.
Price
$85.85
Fair Value
$87.00
Uncertainty
Medium
1-Star Price
$211.10
5-Star Price
$73.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Increases in asset prices can materially improve revenue and operating margins in the company's asset-management and wealth-management segments. There's also a sweet spot to the level of interest rates that can improve earnings.

Bears

Operating leverage has recently led to strong earnings performance, but any pullback in revenue from a recession could also lead to material margin contraction. We anticipate revenue will be about flat over the next couple of years.

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News

Trading Information

Previous Close Price
$85.46
Day Range
$85.6086.74
52-Week Range
$69.4299.20
Bid/Ask
$85.45 / $86.70
Market Cap
$140.91 Bil
Volume/Avg
32 / 8.3 Mil

Key Statistics

Price/Earnings (Normalized)
14.26
Price/Sales
2.73
Dividend Yield (Trailing)
3.87%
Dividend Yield (Forward)
3.96%
Total Yield
8.26%

Company Profile

Morgan Stanley is a global investment bank whose history, through its legacy firms, can be traced back to 1924. The company has institutional securities, wealth management, and investment management segments. The company had over $4 trillion of client assets as well as over 80,000 employees at the end of 2022. Approximately 50% of the company's net revenue is from its institutional securities business, with the remainder coming from wealth and investment management. The company derives about 30% of its total revenue outside the Americas.
Sector
Financial Services
Industry
Capital Markets
Stock Style Box
Large Value
Total Number of Employees
81,000

Competitors

Valuation

Metric
MS
RJF
BAC
Price/Earnings (Normalized)
14.2613.889.21
Price/Book Value
1.522.270.99
Price/Sales
2.732.152.72
Price/Cash Flow
8.8311.736.64
Price/Earnings
MS
RJF
BAC

Financial Strength

Metric
MS
RJF
BAC
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
MS
RJF
BAC
Return on Assets (Normalized)
0.97%2.31%0.99%
Return on Equity (Normalized)
12.60%18.04%12.26%
Return on Invested Capital (Normalized)
Return on Assets
MS
RJF
BAC
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