MORGAN STANLEY (MS) Stock Analysis
MORGAN STANLEY (MS) Stock Analysis
Analysis from 10-Q filed 2025-11-03. Data as of Q4 2025.
Overall Grade: F (Concerning)
MORGAN STANLEY faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | -25.3% | Cash flow pressure |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore MORGAN STANLEY: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: MORGAN STANLEY earns N/A ROIC
MORGAN STANLEY's trailing-twelve-month ROIC of N/A (sector median: 7.3%). Source: 10-Q filed 2025-11-03.
| Metric | MS | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 7.3% |
| Return on Equity (ROE) | 15.0% | Good | Efficient use of shareholder equity |
Cash Flow: MORGAN STANLEY generates $-17.9B FCF at -25.3% margin, positive NaN/8 quarters
MORGAN STANLEY generated $-17.9B in free cash flow (TTM), a -25.3% FCF margin. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-03.
| Metric | MS | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | -25.3% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-17.9B | Red flag | Cash burn |
| OCF/Net Income | -1.1x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: MORGAN STANLEY at 0.0x leverage
MORGAN STANLEY's debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-11-03.
| Metric | MS | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: MORGAN STANLEY trades at 17.2x earnings
MORGAN STANLEY trades at a P/E of 17.2x. Free cash flow yield of -6.4% reflects market expectations for growth.
| Metric | MS | Rating | Context |
|---|---|---|---|
| P/E Ratio | 17.2x | Adequate | Reasonable valuation |
| EV/Sales | 2.5x | Good | Attractive revenue multiple |
| FCF Yield | -6.4% | Warning | Lower cash yield |
| Dividend Yield | 2.2% | Adequate | Growth focus over income |
Capital Allocation: MORGAN STANLEY returns 3.8% shareholder yield
MORGAN STANLEY's total shareholder yield is 3.8% (dividends 2.2% + buybacks 1.6%). Source: 10-Q filed 2025-11-03.
| Metric | MS | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.8% | Good | Dividend + buyback yield combined |
| Buyback Yield | 1.6% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $11.2B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | -25.3% | Bottom 10% | -1.2x below |
| Return on Equity (ROE) | 15.0% | Top 25% | 1.4x above |
| P/E Ratio | 17.2x | N/A | - |
Financial Scorecard
| Metric | MS | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | -25.3% | Red flag | Thin cash margins |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 17.2x | Adequate | Fair value |
| Free Cash Flow Yield | -6.4% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is MORGAN STANLEY's Return on Invested Capital (ROIC)?
MORGAN STANLEY (MS) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is MORGAN STANLEY's Free Cash Flow Margin?
MORGAN STANLEY (MS) has a free cash flow margin of -25.3%, generating $-17.9 billion in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is MORGAN STANLEY stock overvalued or undervalued?
MORGAN STANLEY (MS) trades at a P/E ratio of 17.2x, which is above the sector median of N/A. The EV/Sales multiple is 2.5x.
Q: Does MORGAN STANLEY pay a dividend?
MORGAN STANLEY (MS) currently pays a dividend yield of 2.2%. Including share buybacks, the total shareholder yield is 3.8%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is MORGAN STANLEY's revenue and earnings growth?
MORGAN STANLEY (MS) grew revenue by 14.4% year-over-year. Earnings per share increased by 28.6% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: Is MORGAN STANLEY buying back stock?
MORGAN STANLEY (MS) repurchased $4.6 billion of stock over the trailing twelve months. This represents a buyback yield of 1.6%.
Q: How does MORGAN STANLEY compare to competitors in Financials?
Compared to other companies in Financials, MORGAN STANLEY (MS) shows: ROIC of N/A is below the sector median of 7.3% (NaNx median). FCF margin of -25.3% trails the sector median of 21.7%. These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with MORGAN STANLEY?
Investors in MORGAN STANLEY (MS) should monitor these potential warning signs: 1) FCF margin is thin at -25.3%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-03. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.