Morgan Stanley Profitability Analysis
MSDL Stock | 20.43 0.20 0.97% |
Net Income | First Reported 2010-12-31 | Previous Quarter 231 M | Current Value 242.6 M | Quarterly Volatility 76.4 M |
Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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Gross Profit Margin | 0.67 | 0.864 |
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Net Profit Margin | 0.63 | 0.6306 |
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Operating Profit Margin | 0.4 | 0.4238 |
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Pretax Profit Margin | 0.8 | 0.6348 |
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Return On Equity | 0.13 | 0.1342 |
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For Morgan Stanley profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Morgan Stanley to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Morgan Stanley Direct utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Morgan Stanley's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Morgan Stanley Direct over time as well as its relative position and ranking within its peers.
Morgan |
Is Diversified Financial Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Morgan Stanley. If investors know Morgan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Morgan Stanley listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Morgan Stanley Direct is measured differently than its book value, which is the value of Morgan that is recorded on the company's balance sheet. Investors also form their own opinion of Morgan Stanley's value that differs from its market value or its book value, called intrinsic value, which is Morgan Stanley's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Morgan Stanley's market value can be influenced by many factors that don't directly affect Morgan Stanley's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Morgan Stanley's value and its price as these two are different measures arrived at by different means. Investors typically determine if Morgan Stanley is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Morgan Stanley's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Morgan Stanley Direct Price To Book vs. Shares Outstanding Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Morgan Stanley's current stock value. Our valuation model uses many indicators to compare Morgan Stanley value to that of its competitors to determine the firm's financial worth. Morgan Stanley Direct is considered to be number one stock in shares outstanding category among its peers. It also is considered to be number one stock in price to book category among its peers . The ratio of Shares Outstanding to Price To Book for Morgan Stanley Direct is about 92,208,869 . Price To Book Ratio is expected to rise to 1.11 this year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Morgan Stanley by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Morgan Price To Book vs. Shares Outstanding
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.
Morgan Stanley |
| = | 89 M |
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Morgan Stanley |
| = | 0.97 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Morgan Price To Book Comparison
Morgan Stanley is currently under evaluation in price to book category among its peers.
Morgan Stanley Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Morgan Stanley, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Morgan Stanley will eventually generate negative long term returns. The profitability progress is the general direction of Morgan Stanley's change in net profit over the period of time. It can combine multiple indicators of Morgan Stanley, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last Reported | Projected for Next Year | ||
Accumulated Other Comprehensive Income | 1.7 B | 1.3 B | |
Net Interest Income | 246.9 M | 140.1 M | |
Interest Income | 359.8 M | 196.4 M | |
Operating Income | 155.3 M | 122.9 M | |
Net Income From Continuing Ops | 231 M | 242.6 M | |
Income Before Tax | 232.5 M | 130.5 M | |
Total Other Income Expense Net | 77.3 M | 58.6 M | |
Net Income | 231 M | 242.6 M | |
Income Tax Expense | 1.5 M | 1.4 M | |
Net Income Per Share | 2.62 | 2.75 | |
Income Quality | 0.80 | 0.96 | |
Net Income Per E B T | 0.99 | 0.89 |
Morgan Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Morgan Stanley. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Morgan Stanley position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Morgan Stanley's important profitability drivers and their relationship over time.
Morgan Stanley Profitability Trends
Morgan Stanley profitability trend refers to the progression of profit or loss within a business. An upward trend means that Morgan Stanley's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Morgan Stanley's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Morgan Stanley Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Morgan Stanley different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Morgan Stanley in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Morgan Stanley's future profitability.
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Use Morgan Stanley in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Morgan Stanley position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Morgan Stanley will appreciate offsetting losses from the drop in the long position's value.Morgan Stanley Pair Trading
Morgan Stanley Direct Pair Trading Analysis
The ability to find closely correlated positions to Morgan Stanley could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Morgan Stanley when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Morgan Stanley - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Morgan Stanley Direct to buy it.
The correlation of Morgan Stanley is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Morgan Stanley moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Morgan Stanley Direct moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Morgan Stanley can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Morgan Stanley position
In addition to having Morgan Stanley in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Correlation Analysis. For more information on how to buy Morgan Stock please use our How to buy in Morgan Stock guide.You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Morgan Stanley's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Morgan Stanley Direct at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Morgan Stanley's income statement, its balance sheet, and the statement of cash flows.