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The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Morgan Stanley has an F-score of 5 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for Morgan Stanley's Piotroski F-Score or its related term are showing as below:
During the past 13 years, the highest Piotroski F-Score of Morgan Stanley was 8. The lowest was 2. And the median was 6.
The historical data trend for Morgan Stanley's Piotroski F-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Morgan Stanley Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Piotroski F-Score | Get a 7-Day Free Trial | 7.00 | 5.00 | 7.00 | 2.00 | 3.00 |
Morgan Stanley Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
Piotroski F-Score | Get a 7-Day Free Trial | 2.00 | 3.00 | 3.00 | 4.00 | 5.00 |
For the Capital Markets subindustry, Morgan Stanley's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Capital Markets industry and Financial Services sector, Morgan Stanley's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Morgan Stanley's Piotroski F-Score falls into.
How is the Piotroski F-Score calculated?
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
This Year (Sep24) TTM: | Last Year (Sep23) TTM: |
Net Income was 1517 + 3412 + 3076 + 3188 = $11,193 Mil. Cash Flow from Operations was -17752 + 4360 + 2525 + -17323 = $-28,190 Mil. Revenue was 12031 + 14215 + 14024 + 14339 = $54,609 Mil. Average Total Assets from the begining of this year (Sep23) to the end of this year (Sep24) was (1169013 + 1193693 + 1228503 + 1212447 + 1258027) / 5 = $1212336.6 Mil. Total Assets at the begining of this year (Sep23) was $1,169,013 Mil. Long-Term Debt & Capital Lease Obligation was $295,509 Mil. Total Assets was $1,258,027 Mil. Total Liabilities was $1,153,356 Mil. |
Net Income was 2236 + 2980 + 2182 + 2408 = $9,806 Mil. Revenue was 11898 + 13636 + 12582 + 12418 = $50,534 Mil. Average Total Assets from the begining of last year (Sep22) to the end of last year (Sep23) was (1160029 + 1180231 + 1199904 + 1164911 + 1169013) / 5 = $1174817.6 Mil. Total Assets at the begining of last year (Sep22) was $1,160,029 Mil. Long-Term Debt & Capital Lease Obligation was $250,120 Mil. Total Assets was $1,169,013 Mil. Total Liabilities was $1,068,855 Mil. |
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Morgan Stanley's current Net Income (TTM) was 11,193.
==> Positive ==> Score 1.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Morgan Stanley's current Cash Flow from Operations (TTM) was -28,190.
==> Negative ==> Score 0.
Question 3. Change in Return on Assets
Compare this year's return on assets (1) to last year's return on assets.
Score 1 if it's higher, 0 if it's lower.
ROA (This Year) | = | Net Income | / | Total Assets (Sep23) |
= | 11193 | / | 1169013 | |
= | 0.00957474 |
ROA (Last Year) | = | Net Income | / | Total Assets (Sep22) |
= | 9806 | / | 1160029 | |
= | 0.00845324 |
Morgan Stanley's return on assets of this year was 0.00957474. Morgan Stanley's return on assets of last year was 0.00845324.
==> This year is higher. ==> Score 1.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Score 1 if CFROA > ROA, 0 if CFROA <= ROA.
Morgan Stanley's current Net Income (TTM) was 11,193. Morgan Stanley's current Cash Flow from Operations (TTM) was -28,190.
==> -28,190 <= 11,193 ==> CFROA <= ROA ==> Score 0.
Funding
Question 5. Change in Gearing or Leverage
Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.
Score 0 if this year's gearing is higher, 1 otherwise.
Gearing (This Year: Sep24) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Sep23 to Sep24 |
= | 295509 | / | 1212336.6 | |
= | 0.24375161 |
Gearing (Last Year: Sep23) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Sep22 to Sep23 |
= | 250120 | / | 1174817.6 | |
= | 0.21290113 |
Morgan Stanley's gearing of this year was 0.24375161. Morgan Stanley's gearing of last year was 0.21290113.
==> Last year is lower than this year ==> Score 0.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.
Current Ratio (This Year: Sep24) | = | Total Assets | / | Total Liabilities |
= | 1258027 | / | 1153356 | |
= | 1.09075342 |
Current Ratio (Last Year: Sep23) | = | Total Assets | / | Total Liabilities |
= | 1169013 | / | 1068855 | |
= | 1.09370588 |
Morgan Stanley's current ratio of this year was 1.09075342. Morgan Stanley's current ratio of last year was 1.09370588.
==> Last year's current ratio is higher ==> Score 0.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
Morgan Stanley's number of shares in issue this year was 1609. Morgan Stanley's number of shares in issue last year was 1643.
==> There is smaller number of shares in issue this year, or the same. ==> Score 1.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.
Net Margin (This Year: TTM) | = | Net Income | / | Revenue |
= | 11193 | / | 54609 | |
= | 0.20496621 |
Net Margin (Last Year: TTM) | = | Net Income | / | Revenue |
= | 9806 | / | 50534 | |
= | 0.19404757 |
Morgan Stanley's net margin of this year was 0.20496621. Morgan Stanley's net margin of last year was 0.19404757.
==> This year's net margin is higher. ==> Score 1.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
Asset Turnover (This Year) | = | Revenue | / | Total Assets at the Beginning of This Year (Sep23) |
= | 54609 | / | 1169013 | |
= | 0.04671377 |
Asset Turnover (Last Year) | = | Revenue | / | Total Assets at the Beginning of Last Year (Sep22) |
= | 50534 | / | 1160029 | |
= | 0.0435627 |
Morgan Stanley's asset turnover of this year was 0.04671377. Morgan Stanley's asset turnover of last year was 0.0435627.
==> This year's asset turnover is higher. ==> Score 1.
Evaluation
Piotroski F-Score | = | Que. 1 | + | Que. 2 | + | Que. 3 | + | Que. 4 | + | Que. 5 | + | Que. 6 | + | Que. 7 | + | Que. 8 | + | Que. 9 |
= | 1 | + | 0 | + | 1 | + | 0 | + | 0 | + | 0 | + | 1 | + | 1 | + | 1 | |
= | 5 |
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Morgan Stanley has an F-score of 5 indicating the company's financial situation is typical for a stable company.
Morgan Stanley (NYSE:MS) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
Thank you for viewing the detailed overview of Morgan Stanley's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Stephen J Luczo | director | |
Mandell Crawley | officer: Chief Human Resources Officer | 1585 BROADWAY, NEW YORK NY 10036 |
Sharon Yeshaya | officer: Chief Financial Officer | C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036 |
Raja Akram | officer: Deputy Chief Financial Officer | 1585 BROADWAY, NEW YORK NY 10036 |
Daniel A Simkowitz | officer: Head of Investment Management | C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036 |
Robert H Herz | director | C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005 |
James P Gorman | other: Business Unit Head | C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036 |
Smith Charles Aubrey Iii | officer: Chief Risk Officer | 1585 BROADWAY, NEW YORK NY 10036 |
Andrew M Saperstein | officer: Head of Wealth Management | 1585 BROADWAY, NEW YORK NY 10036 |
Eric F Grossman | officer: Chief Legal Officer | C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036 |
Edward N Pick | officer: Head of Inst'l Securities | 1585 BROADWAY, NEW YORK NY 10036 |
Thomas H Glocer | director | 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033 |
Alistair Darling | director | C/O MORGAN STANLEY 1585 BROADWAY, NEW YORK X1 10036 |
Masato Miyachi | director | C/O MORGAN STANLEY 1585 BROADWAY, NEW YORK NY 10036 |
Keishi Hotsuki | officer: Interim Chief Risk Officer | C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036 |
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