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Morgan Stanley (MS) Stock Guide

September 18, 2020
80
Bull Case
  • Revenue growth higher than the industry and sector averages
  • Forward dividend yield higher than the industry and sector averages
  • Forward P/E ratio low relative to industry peers
  • Forward P/B ratio low relative to industry peers
  • Forward PEG ratio low relative to industry peers
  • Buy analyst rating
  • Average analyst stock price above current stock price
  • Cash/Debt ratio is higher than the industry and sector averages
Bear Case
  • Company’s profitability is declining
  • High short interest

Before we start: if you're looking for MS stock price, you can quickly find it out by visiting Finny and typing "MS quote". If you're looking for a quick scoop on MS stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "MS". You'll get all this info in one place. Or you can just type "MS news" to get the latest stock news.

Looking to buy or sell Morgan Stanley (MS)? Interested in getting the full scoop on MS, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this MS stock guide, we'll address key questions about MS, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are MS earnings?
2. What is MS dividend?
3. What is MS dividend yield?
4. What is MS stock forecast (i.e., prediction)?
5. MS buy or sell? What is MS Finny Score?
6. What are the reasons to buy MS? Why should I buy MS stock?
7. What are the reasons to sell MS? Why should I sell MS stock?
8. What are MS key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are MS earnings?

MS trailing 12-month earnings per share (EPS) is $5.52.

2. What is MS dividend?

MS forward dividend is $1.40.

3. What is MS dividend yield?

MS forward dividend yield is 2.68%.

Analyst Predictions

4. What is MS stock forecast (i.e., prediction)?

Based on MS analyst price targets, MS stock forecast is $59.51 (for a year from now). That means the average analyst price target for MS stock is $59.51. The prediction is based on 27 analyst estimates.

The low price target for MS is $45.00, while the high price target is $73.00.

MS analyst rating is Buy.

Analysis

5. MS buy or sell? What is MS Finny Score?

Our quantitative analysis shows 8 reasons to buy and 2 reasons to sell MS, resulting in Finny Score of 80.

6. What are the reasons to buy MS? Why should I buy MS stock?

Here are the reasons to buy MS stock:

  • Increases in asset prices and interest rates will materially improve revenue and operating margins in the company's asset-management and wealth-management segments.
  • Less reliance on trading revenue should allow the firm to weather regulatory changes better than its peers.
  • Approval to return more capital than the company's projected net income should be a positive catalyst for the stock.
  • MS quarterly revenue growth was 30.90%, higher than the industry and sector average revenue growth (0.74% and 1.27%, respectively). See MS revenue growth chart.
  • MS forward dividend yield is 2.68%, higher than the industry (0.61%) and sector (1.11%) forward dividend yields. See MS forward dividend chart.
  • MS forward P/E ratio is 10.71, which is low compared to its industry peers’ P/E ratios. See MS forward P/E ratio chart.
  • MS Price/Book ratio is 1.06, which is low compared to its industry peers’ P/B ratios. See MS forward Price/Book ratio chart.
  • MS PEG ratio (P/E adjusted for growth) is 3.77, which is low compared to its industry peers’ PEG ratios. See MS PEG chart.
  • MS average analyst rating is Buy. See MS analyst rating chart.
  • MS average analyst price target ($59.51) is above its current price ($50.25). See MS price target chart.
  • MS cash to debt ratio is 1.91, higher than the average industry (0.18) and sector (0.18) cash to debt ratio. See MS cash to debt chart.

7. What are the reasons to sell MS? Why should I sell MS stock?

Let's look at the reasons to sell MS stock (i.e., the bear case):

  • The fixed-income and commodities business may require more of an overhaul than management anticipates.
  • Higher regulatory capital requirements will reduce returns on equity below pre-financial-crisis levels. In recent years, the Federal Reserve hasn't allowed many banks to draw down their excess capital.
  • The Department of Labor fiduciary rule will lead to many changes to how Morgan Stanley and the rest of the U.S. wealth-management industry operate.
  • MS profitability is declining. The YoY profit margin change was -1.18 percentage points. See MS profitability chart.
  • MS short interest (days to cover the shorts) ratio is 4.19. The stock garners more short interest than the average industry, sector or S&P 500 stock. See MS short interest ratio chart.

Key Stats

8. What are MS key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for MS:

Metrics MS
Price $47.05
Average Price Target / Upside $59.51 / 26.47%
Average Analyst Rating Buy
Forward Dividend Yield 2.68%
Industry Capital Markets
Sector Financial Services
Number of Employees 60,348
Market Cap $82.91B
Forward P/E Ratio 10.71
Price/Book Ratio 1.89
Revenue (TTM) $43.79B
YoY Quarterly Revenue Growth 30.90%
Profit Margin 21.25%

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