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Morgan Stanley MS

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Stock XNYS Rating as of
$99.65 +0.49 (0.49%)
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As of Delayed Price Closed
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Company Report

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Morgan Stanley's Wealth Management Business Will Power Earnings Growth, Even if Trading Stagnates

Michael Wong

Morgan Stanley has built a more stable business model, and its shift to wealth management from investment banking will continue to be a main part of the company’s story over the long term. Investment banking is capital intensive, and many banks, especially the European investment banks, have had trouble earning adequate returns in that business and have purposely shrunk that business line. Morgan Stanley has remained dedicated to investment banking and has gained market share. The company had a strong return on equity in its institutional securities business of about 16% in 2020 and 20% in 2021 but has only averaged about 11% over the previous decade.

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Price vs Fair Value

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MS is trading at a 117% premium.
Price
$99.16
Fair Value
$22.00
Uncertainty
Medium
1-Star Price
$923.62
5-Star Price
$82.90
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.

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Trading Information

Previous Close Price
$99.16
Day Range
$98.62–99.80
52-Week Range
$69.42–103.25
Bid/Ask
$99.60 / $99.63
Market Cap
$161.95 Bil
Volume/Avg
5.6 Mil / 6.4 Mil

Key Statistics

Price/Earnings (Normalized)
16.49
Price/Sales
3.18
Dividend Yield (Trailing)
3.43%
Dividend Yield (Forward)
3.43%
Total Yield
6.93%

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 with approximately 45% of net revenue from its institutional securities business, 45% from wealth management, and 10% from investment management. About 30% of its total revenue is from outside the Americas. The company had over $5 trillion of client assets as well as around 80,000 employees at the end of 2023.
Sector
Financial Services
Industry
Capital Markets
Stock Style Box
Large Value
Total Number of Employees
80,000
Website
https://www.morganstanley.com

Competitors

Valuation

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Metric
MS
GS
BAC
Price/Earnings (Normalized)
 16.4917.1813.71
Price/Book Value
 1.791.461.21
Price/Sales
 3.183.303.35
Price/Cash Flow
 10.449.628.88
Price/Earnings
MS
GS
BAC

Financial Strength

Metric
MS
GS
BAC
Quick Ratio
 ———
Current Ratio
 ———
Interest Coverage
 ———
Quick Ratio
No chart available

Profitability

Metric
MS
GS
BAC
Return on Assets (Normalized)
 1.02%0.80%0.92%
Return on Equity (Normalized)
 13.37%12.72%11.28%
Return on Invested Capital (Normalized)
 ———
Return on Assets
MS
GS
BAC
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