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Morgan Stanley

MS
54
Financial - Capital Markets · Financial Services
Price
$215.47
-2.90 (-1.33%)
Market Cap
$339.86B
Winston Score
54
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

12.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.81B (2021) → 1.59B (2025)

Morgan Stanley is a large American bank that helps wealthy people, big companies, and governments manage money and make financial deals. Its main services include investment banking (helping companies raise money or merge with other companies), wealth management (helping rich individuals invest and plan finances), and trading stocks and bonds. It is one of the largest investment banks in the world.

Morgan Stanley makes money through fees, commissions, and interest — charging clients for advice, trades, and managing their assets. It operates globally, with major offices across the United States, Europe, and Asia, and manages trillions of dollars in client assets. Its large, loyal base of wealthy clients and deep relationships with major corporations give it a strong competitive position. The key growth driver is continued expansion of its wealth and asset management business, which provides steadier fee income compared to its more unpredictable trading and investment banking revenues.

Winston Score History

Politician Trades

28 trades / 12mo

19 Congressional buys and 9 sells on MS in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+18.8% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+31.3% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

24.2%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~4 years

$133.5B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

$133.5B cash & investments at current burn rate

Growth context

Morgan Stanley is growing revenue at 19% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
61.8%
Premium pricing power — 61.8% gross margin
Operating Margin
21.1%
Excellent — 21.1% operating margin
ROCE
1.4%
Weak — 1.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+13.7%
Fast-growing sales (13.7% YoY)
EPS YoY
+29.0%
Earnings growing fast (29.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
-6%
Weak — only -6% of profit becomes cash
FCF Margin
-4.5%
Burning cash (-4.5%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
3.45
Heavy debt load (3.45)
Interest Cover
0.47x
Dangerous — barely covers interest (0.5x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)
19.4x
Fair value — P/E 19.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+2.5
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield
1.83%
Small dividend — 1.83% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+8.1%
Dividend growing modestly (8.1% YoY)

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