Morgan Stanley (MS)
Financials · $292B market cap · SEC CIK 0000895421
ahead of 57% of the S&P 500 · #34 of 76 in Financials
Next reports on Jan 14, 2027, before the open, with analysts expecting $3.04 in earnings per share.
52-week range $152.80 to $232.25. 19% below its 52-week high and 23% above its low.
The case for MS
- Cheap for its growth: 14.3× earnings, where 10%+ a year of growth plus a 4.3% dividend would justify about 29×.
- Revenue growing 12.0% year over year.
- Earnings per share up 28.3%.
- Pays a 4.3% dividend while you wait.
- Has compounded revenue at 17.9% a year over five years.
- Return on equity of 18%.
The case against
- Weakest against its peers: net margin of 16% is thinner than 64% of Financials companies.
- Its weakest area is the price trend (45/100): +15.2% over a year, −13.1% over three months, 19% below its 52-week high.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 56 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 77 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 58 |
| Momentumhow the price has behaved lately | 45 |
| Stabilityhow violently it moves, what it owes and what it pays you | 49 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +12.0% |
|---|---|
| Over 5 years | +17.9% a year |
| FY2025 revenue | $70.6B (+14%) |
Free cash flow
Is it generating real cash? Not meaningful for a financial company
Profit margins
Is profitability improving? No, slipping
| Gross margin | 57% |
|---|---|
| Operating margin | 20% |
| Net margin, FY24 → FY25 → now | 21.7% → 23.9% → 15.6% |
Debt vs. cash
Is the balance sheet healthy? Not judged for a financial company
| Cash | $112B |
|---|---|
| Long-term debt | $342B |
| Net debt | $230B |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 14.3× |
|---|---|
| Fair P/E for its growth | 29× |
| Price / book | 2.51× |
| Fair P/B for its ROE | 1.8× |
| Forward P/E | 13.7× |
| EV / EBITDA | 37.8× |
At 14.3× earnings it trades well below the 29× that 10%+ a year of growth plus a 4.3% dividend would justify. At 2.51× book it trades above the 1.8× that its 18% return on equity would justify; for a financial company that counts for more than earnings.
The financials, five years deep
Pulled from Morgan Stanley's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $70.6B | $61.8B | $54.1B | $53.7B | $59.8B |
| Change on the year | +14% | +14% | +1% | −10% | — |
| Profit margins | |||||
| Net margin | 23.9% | 21.7% | 16.8% | 20.6% | 25.2% |
| Debt vs. cash | |||||
| Cash | $112B | $105B | $89.2B | $128B | $128B |
| Long-term debt | $342B | $284B | $261B | $234B | $227B |
| Net cash (debt) | −$230B | −$179B | −$171B | −$106B | −$99.6B |
Filings
The text of this 10-K could not be read automatically. The original is linked below.