Morgan StanleyMIL:1MS 44 ROA % is 1.49% as of Mar. 2026, which is 45% above its 10-year median of 1.03. GuruFocus rates MIL:1MS with a GF Score™ of 44/100 and a GF Value™ of €131.58 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 816 Capital Markets companies, Morgan Stanley ranks worse than 51.96% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Morgan Stanley's annualizedNet Income for the quarter that ended in Mar. 2026 was €19,262 Mil.
Morgan Stanley's average Total Assets over the quarter that ended in Mar. 2026 was €1,290,419 Mil. Therefore, Morgan Stanley's annualized ROA % for the quarter that ended in Mar. 2026 was 1.49%.
The historical rank and industry rank for Morgan Stanley's ROA % or its related term are showing as below:
MIL:1MS'
s ROA % Range Over the Past 10 Years
Min: 0.73 Med: 1.03 Max: 1.31
Current: 1.29
During the past 13 years, Morgan Stanley's highest ROA % was 1.31%. The lowest was 0.73%. And the median was 1.03%.
MIL:1MS's ROA % is ranked worse than 51.96% of 816
companies
in the Capital Markets industry
Industry Median: 1.5
vs MIL:1MS: 1.29
Morgan Stanley (MIL:1MS) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Morgan Stanley ROA % Related Terms
Morgan Stanley ROA % Historical Data
* Premium members only.
The historical data trend for Morgan Stanley's ROA % 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.
For the Capital Markets subindustry, Morgan Stanley's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Morgan Stanley's ROA % distribution charts can be found below:
* The bar in red indicates where Morgan Stanley's ROA % falls into.
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Morgan Stanley (MIL:1MS) has a ROA % of 1.49% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Morgan Stanley and its competitors. This is 45% above median its historical median of 1.03. Over the past decade, Morgan Stanley's ROA % has ranged from 0.73 to 1.31. According to the industry distribution chart, Morgan Stanley ranks #424 out of 816 companies in the Capital Markets industry, placing it in the top 52%.
Is Morgan Stanley's ROA % too high?
Morgan Stanley's current ROA % of 1.49% is 45% above median its 10-year median of 1.03. Over the past 10 years, this metric has ranged from a low of 0.73 to a high of 1.31. The Capital Markets industry median ROA % is 1.50. Morgan Stanley's value of 1.49% is 0.7% below this industry median. Based on the distribution chart, Morgan Stanley ranks #424 out of 816 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Morgan Stanley has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morgan Stanley's ROA % compare to GS and SCHW?
According to the Capital Markets industry distribution chart, Morgan Stanley ranks #424 out of 816 companies for ROA %. This places Morgan Stanley in the lower half of its industry. The industry median ROA % is 1.50. Morgan Stanley's value of 1.49% is 0.7% below this benchmark. Historically, Morgan Stanley's own ROA % has ranged from 0.73 to 1.31 over the past decade. While the company's 10-year median is 1.03 vs. the industry median of 1.50, Morgan Stanley has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Capital Markets company?
The median ROA % among Capital Markets companies is 1.50, based on 816 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Morgan Stanley's current ROA % of 1.49% is 0.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Morgan Stanley and its competitors. For the Capital Markets industry, the median ROA % is 1.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morgan Stanley's current ROA % is 1.49%, which is 45% above median its own 10-year median of 1.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morgan Stanley stock overvalued right now?
Based on GuruFocus' analysis, Morgan Stanley (MIL:1MS) is currently considered Significantly Overvalued. The stock's GF Value™ is €131.58, compared to a current price of €198.35 — trading 50.7% above its estimated fair value. The current ROA % is 1.49%, which is 45% above median its 10-year median of 1.03 and 0.7% below the Capital Markets industry median of 1.50. Morgan Stanley's overall GF Score™ is 44/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Morgan Stanley (MIL:1MS), the current ROA % is 1.49% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Morgan Stanley (MIL:1MS) Overvalued in 2026?
Based on GuruFocus' analysis, Morgan Stanley stock appears to be overvalued.
The current stock price of €198.35 is trading 50.7% above its estimated GF Value™ of €131.58.
GuruFocus considers Morgan Stanley to be Significantly Overvalued.
Key valuation signals for MIL:1MS:
ROA %: 1.49% (45% above median its 10-year median of 1.03)
GF Value™: €131.58 vs. price of €198.35 (50.7% above fair value)
Industry Position: 0.7% below the Capital Markets median (#424 of 816)
No single metric tells the full story. See the MIL:1MS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morgan Stanley is a massive global financial services firm, with offices in 42 countries and more than 82,000 employees as of year-end 2025. The firm cut its teeth in investment banking and institutional trading, where it maintains a strong presence today, but generates the lion share of its income from wealth and asset management franchises, where it boasted $9.3 trillion in client assets at the end of 2025. After reincorporation as a bank holding company in the wake of the global financial crisis, Morgan Stanley also boasts a top 10 banking franchise by deposits, with more than $400 billion in customer deposits, predominately attributable to cash sweeps from its wealth management and brokerage businesses.
44GF Score
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