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Morgan Stanley (Morgan Stanley) Piotroski F-Score

: 3 (As of Today)
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Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

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 3. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for Morgan Stanley's Piotroski F-Score or its related term are showing as below:

MS' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 8
Current: 3

During the past 13 years, the highest Piotroski F-Score of Morgan Stanley was 8. The lowest was 2. And the median was 6.


Morgan Stanley Piotroski F-Score Historical Data

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.

* Premium members only.

Morgan Stanley Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 5.00 7.00 2.00 3.00

Morgan Stanley Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.00 2.00 2.00 3.00 -

Competitive Comparison

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.


Morgan Stanley Piotroski F-Score Distribution

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 (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 2980 + 2182 + 2408 + 1517 = $9,087 Mil.
Cash Flow from Operations was -9865 + -9666 + 3747 + -17752 = $-33,536 Mil.
Revenue was 13636 + 12582 + 12418 + 12031 = $50,667 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(1180231 + 1199904 + 1164911 + 1169013 + 1193693) / 5 = $1181550.4 Mil.
Total Assets at the begining of this year (Dec22) was $1,180,231 Mil.
Long-Term Debt & Capital Lease Obligation was $267,467 Mil.
Total Assets was $1,193,693 Mil.
Total Liabilities was $1,093,711 Mil.
Net Income was 3666 + 2495 + 2632 + 2236 = $11,029 Mil.

Revenue was 13919 + 12254 + 12139 + 11898 = $50,210 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(1188140 + 1222233 + 1173776 + 1160029 + 1180231) / 5 = $1184881.8 Mil.
Total Assets at the begining of last year (Dec21) was $1,188,140 Mil.
Long-Term Debt & Capital Lease Obligation was $241,081 Mil.
Total Assets was $1,180,231 Mil.
Total Liabilities was $1,079,000 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 9,087. ==> 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 -33,536. ==> 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 (Dec22)
=9087/1180231
=0.00769934

ROA (Last Year)=Net Income/Total Assets (Dec21)
=11029/1188140
=0.00928258

Morgan Stanley's return on assets of this year was 0.00769934. Morgan Stanley's return on assets of last year was 0.00928258. ==> Last year is higher ==> Score 0.

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 9,087. Morgan Stanley's current Cash Flow from Operations (TTM) was -33,536. ==> -33,536 <= 9,087 ==> 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: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=267467/1181550.4
=0.22636952

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=241081/1184881.8
=0.20346418

Morgan Stanley's gearing of this year was 0.22636952. Morgan Stanley's gearing of last year was 0.20346418. ==> 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: Dec23)=Total Assets/Total Liabilities
=1193693/1093711
=1.09141537

Current Ratio (Last Year: Dec22)=Total Assets/Total Liabilities
=1180231/1079000
=1.09381928

Morgan Stanley's current ratio of this year was 1.09141537. Morgan Stanley's current ratio of last year was 1.09381928. ==> 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 1625. Morgan Stanley's number of shares in issue last year was 1677. ==> 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
=9087/50667
=0.1793475

Net Margin (Last Year: TTM)=Net Income/Revenue
=11029/50210
=0.21965744

Morgan Stanley's net margin of this year was 0.1793475. Morgan Stanley's net margin of last year was 0.21965744. ==> Last year's net margin is higher ==> Score 0.

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 (Dec22)
=50667/1180231
=0.04292973

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=50210/1188140
=0.04225933

Morgan Stanley's asset turnover of this year was 0.04292973. Morgan Stanley's asset turnover of last year was 0.04225933. ==> 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+0+0+0+0+1+0+1
=3

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Morgan Stanley has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

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.


Morgan Stanley Piotroski F-Score Related Terms

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Morgan Stanley (Morgan Stanley) Business Description

Address
1585 Broadway, New York, NY, USA, 10036
Morgan Stanley is a global investment bank whose history, through its legacy firms, can be traced back to 1924. The company has institutional securities, wealth management, and investment management segments. The company had over $4 trillion of client assets as well as over 80,000 employees at the end of 2022. Approximately 50% of the company's net revenue is from its institutional securities business, with the remainder coming from wealth and investment management. The company derives about 30% of its total revenue outside the Americas.
Executives
Andrew M Saperstein officer: Head of Wealth Management 1585 BROADWAY, NEW YORK NY 10036
Raja Akram officer: Deputy Chief Financial Officer 1585 BROADWAY, NEW YORK NY 10036
Edward N Pick officer: Head of Inst'l Securities 1585 BROADWAY, NEW YORK NY 10036
James P Gorman other: Business Unit Head C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036
Daniel A Simkowitz officer: Head of Investment Management C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036
Smith Charles Aubrey Iii officer: Chief Risk Officer 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
Mandell Crawley officer: Chief Human Resources Officer 1585 BROADWAY, NEW YORK NY 10036
Eric F Grossman officer: Chief Legal Officer C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036
Masato Miyachi director C/O MORGAN STANLEY 1585 BROADWAY, NEW YORK NY 10036
Stephen J Luczo director
Keishi Hotsuki officer: Interim Chief Risk Officer C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036
Jonathan Pruzan officer: Chief Financial Officer C/O MORGAN STANLEY 1585 BROADWAY, NEW YORK NY 10036
Erika H James director C/O SVMK INC., ONE CURIOSITY WAY, SAN MATEO CA 94403