NYSE · Financial Services

Morgan Stanley

MS · Capital Markets

$223.17

▼ -1.79 (-0.8%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Net Income Margin 28.8%

Fin. Health

F⤢

Years to Pay Off Debt 70.8 yrs

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 3.37x

Cash Flow

C⤢

Free Cash Flow -$7.9B

CapEx % of Net Income 13.5%

Owner Earnings $7.0B

Cash Flow

Free Cash Flow -$7.9B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 13.5%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $7.0B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Morgan Stanley

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Asia, Europe, the Middle East, and Africa. It operates through Institutional Securities, Wealth Management, and Investment Management segments. The company offers capital raising and financial advisory services, including services related to the underwriting of debt, equity securities, and other products, as well as advice on mergers and acquisitions, restructurings, and project finance. It also provides equity and fixed income products comprising sales, financing, prime brokerage, and market-making services; Asia wealth management; business-related investments services; originating corporate and commercial real estate loans, secured lending facilities, and extending securities-based and other financing; and research activities. In addition, the company offers financial advisor-led brokerage, investment advisory, custody, cash management, and administrative services; self-directed brokerage services; financial and wealth planning services; stock plan administration; securities-based lending, residential real estate loans, and other lending products; banking; and retirement plan services. Further, it provides equity, fixed income, alternatives and solutions, and liquidity and overlay services to benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors, corporations, and individuals. Morgan Stanley was founded in 1924 and is headquartered in New York, New York.

Metric Explanations

What each dimension measures and where the thresholds come from.

Market Data

Market Cap $352.0B

Enterprise Value $275.4B

P/E (TTM) 20.21

Dividend Yield 1.78%

Exchange NYSE

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin 28.8%

Company Info

Sector Financial Services

Industry Capital Markets

Employees 84000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Morgan Stanley at $223.17.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

At $223.17, the stock trades at a 212% premium to its Graham Number of $71.52. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q3 2024
Gross Profit %	N/A•	N/A•	N/A
Operating Margin %	N/A•	N/A•	N/A
Net Income %	28.8%▲	26.2%•	N/A
Diluted EPS	3.43▲	2.68•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$1,581.4B	$1,420.3B	N/A
Total Debt	$394.2B▲	$370.5B•	N/A
Working Capital	N/A•	N/A•	N/A
Years to Pay Debt	70.82	84.27	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	-$7.9B▼	-$3.1B•	N/A
Owner Earnings	$7.0B	$6.2B	N/A
CapEx % of Net Income	13.5%	16.1%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-34,859	0
Tax Rate For Calcs	0	0
Total Unusual Items	-178,000		-40,000
Total Unusual Items Excluding Goodwill	-178,000		-40,000
Net Income From Continuing Operation Net Minority Interest	5,567,000	4,397,000
Reconciled Depreciation	714,000	1,138,000
Net Interest Income	2,703,000	2,855,000
Interest Expense	12,570,000	12,099,000
Interest Income	15,273,000	14,954,000
Normalized Income	5,710,141	4,397,000
Net Income From Continuing And Discontinued Operation	5,567,000	4,397,000
Diluted Average Shares	1,576,000	1,586,000
Basic Average Shares	1,561,000	1,564,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	5,411,000	4,250,000
Net Income Common Stockholders	5,411,000	4,250,000
Preferred Stock Dividends	156,000	147,000
Net Income	5,567,000	4,397,000
Minority Interests	-71,000	-27,000
Net Income Including Noncontrolling Interests	5,638,000	4,424,000
Net Income Continuous Operations	5,638,000	4,424,000
Tax Provision	1,373,000	1,336,000
Pretax Income	7,011,000	5,760,000
Special Income Charges	-178,000		-40,000
Other Special Charges			40,000
Restructuring And Mergern Acquisition	178,000
Gain On Sale Of Security	146,000	220,000
Selling General And Administration	8,674,000	7,277,000
Selling And Marketing Expense	310,000	358,000
General And Administrative Expense	8,364,000	6,919,000
Salaries And Wages	8,364,000	6,919,000
Total Revenue	19,324,000	16,762,000
Operating Revenue	19,324,000	16,762,000
Occupancy And Equipment	483,000	491,000
Professional Expense And Contract Services Expense	602,000	769,000
Other Non Interest Expense	2,278,000	2,303,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	459,265	456,060
Preferred Shares Number	344,500	324,500
Ordinary Shares Number	1,579,629	1,582,834
Share Issued	2,038,894	2,038,894
Net Debt	298,453,000	289,228,000
Total Debt	394,234,000	370,538,000
Tangible Book Value	81,471,000	79,146,000
Invested Capital	498,770,000	472,420,000
Net Tangible Assets	91,221,000	88,896,000
Common Stock Equity	104,536,000	101,882,000
Preferred Stock Equity	9,750,000	9,750,000
Total Capitalization	484,819,000	461,024,000
Total Equity Gross Minority Interest	115,384,000	112,652,000
Minority Interest	1,098,000	1,020,000
Stockholders Equity	114,286,000	111,632,000
Gains Losses Not Affecting Retained Earnings	-5,506,000	-6,285,000
Other Equity Adjustments	-5,506,000	-6,285,000
Treasury Stock	39,879,000	38,097,000
Retained Earnings	118,913,000	115,091,000
Additional Paid In Capital	30,988,000	31,153,000
Capital Stock	9,770,000	9,770,000
Common Stock	20,000	20,000
Preferred Stock	9,750,000	9,750,000
Total Liabilities Net Minority Interest	1,466,034,000	1,307,618,000
Derivative Product Liabilities	45,858,000	42,025,000
Long Term Debt And Capital Lease Obligation	370,533,000	349,392,000
Long Term Debt	370,533,000	349,392,000
Current Debt And Capital Lease Obligation	23,701,000	21,146,000
Current Debt	23,701,000	21,146,000
Other Current Borrowings	23,701,000	21,146,000
Payables And Accrued Expenses	259,289,000	226,519,000
Payables	259,289,000	226,519,000
Accounts Payable	259,289,000	226,519,000
Total Assets	1,581,418,000	1,420,270,000
Investments And Advances	402,832,000	378,873,000
Held To Maturity Securities	47,206,000	47,315,000
Available For Sale Securities	78,054,000	80,912,000
Trading Securities	242,469,000	215,007,000
Long Term Equity Investment		246,000	241,000
Goodwill And Other Intangible Assets	23,065,000	22,736,000
Other Intangible Assets	5,960,000	6,010,000
Goodwill	17,105,000	16,726,000
Net PPE		20,000	23,000
Gross PPE		20,000	23,000
Other Properties		20,000	23,000
Receivables	132,599,000	114,720,000
Accounts Receivable	132,599,000	114,720,000
Other Short Term Investments	35,103,000	35,393,000
Cash And Cash Equivalents	95,781,000	81,310,000
Cash Cash Equivalents And Federal Funds Sold	262,409,000	231,938,000

Cash Flow

	2026	2025	2024
Free Cash Flow	-7,852,000	-3,119,000
Repurchase Of Capital Stock	-2,875,000	-1,530,000
Repayment Of Debt	-27,561,000	-28,199,000
Issuance Of Debt	56,195,000	44,985,000
Issuance Of Capital Stock		0	0
Capital Expenditure	-754,000	-709,000
Interest Paid Supplemental Data	14,195,000	12,414,000
Income Tax Paid Supplemental Data	398,000	820,000
End Cash Position	133,529,000	111,695,000
Beginning Cash Position	111,695,000	103,734,000
Effect Of Exchange Rate Changes	-928,000	-202,000
Changes In Cash	22,762,000	8,163,000
Financing Cash Flow	36,460,000	23,970,000
Cash Flow From Continuing Financing Activities	36,460,000	23,970,000
Net Other Financing Charges	-342,000	370,000
Cash Dividends Paid	-1,708,000	-1,688,000
Net Preferred Stock Issuance		0	0
Preferred Stock Issuance		0	0
Net Common Stock Issuance	-2,875,000	-1,530,000
Common Stock Payments	-2,875,000	-1,530,000
Net Issuance Payments Of Debt	28,634,000	16,786,000
Net Long Term Debt Issuance	28,634,000	16,786,000
Long Term Debt Payments	-27,561,000	-28,199,000
Long Term Debt Issuance	56,195,000	44,985,000
Investing Cash Flow	-6,600,000	-13,397,000
Cash Flow From Continuing Investing Activities	-6,600,000	-13,397,000
Net Other Investing Changes	-313,000	-346,000
Net Investment Purchase And Sale	2,916,000	481,000
Sale Of Investment	15,568,000	8,292,000
Purchase Of Investment	-12,652,000	-7,811,000
Net PPE Purchase And Sale	-754,000	-709,000
Operating Cash Flow	-7,098,000	-2,410,000
Cash Flow From Continuing Operating Activities	-7,098,000	-2,410,000
Change In Working Capital	-14,193,000	-9,160,000
Change In Other Working Capital	-53,976,000	-19,333,000
Change In Payables And Accrued Expense	31,739,000	1,142,000
Change In Payable	31,739,000	1,142,000
Change In Receivables	-24,611,000	505,000
Other Non Cash Items	74,000	140,000
Stock Based Compensation	571,000	469,000
Depreciation Amortization Depletion	714,000	1,138,000
Depreciation And Amortization	714,000	1,138,000
Net Income From Continuing Operations	5,638,000	4,424,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $16.5B ▲ $19.3B +17.0%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Net Margin

Prior year: 26.1% ▲ 28.8% +2.7pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$19.3B/qtr (≈$77.3B ann.)

vs > $1.5B annualised revenue

❌ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

-$7.9B

vs Positive

Operating Cash Flow

-$7.1B

Latest quarter · Buffett's cash reality check

ROIC

N/A

Based on latest annual operating income

Market Cap / Net Assets

3.1x

Net Assets: $115.4B

Asset Context — Capital Markets

For banks and financial companies, book value is the most meaningful valuation anchor because assets are primarily financial instruments with known market values. Price-to-Book below 1.0x historically signals stress or deep value in this sector.

Peers & Industry

No auto-detected peers for Capital Markets. You can manually compare MS against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

24.31%

High — management has strong skin in the game

Return on Equity (ROE)

5.3%

Weak — poor returns on equity

Return on Assets (ROA)

0.4%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$5.8B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+6.4% YoY

Debt is roughly stable

Leadership Team

Edward Pick

CEO & Chairman of the Board

Age 56

Pay: $12,690,324

0.228% of net income

Daniel Aaron Simkowitz

Co-President

Age 59

Pay: $12,201,500

0.219% of net income

Andrew Michael Saperstein

Co-President

Age 58

Pay: $12,297,226

0.221% of net income

Sharon Yeshaya

Executive VP & CFO

Age 45

Pay: $8,924,403

0.160% of net income

Clint Gartin

Chairman of Investment Banking

Top Institutional Holders

Institution	% Owned	Shares
Mitsubishi UFJ Financial Group Inc	23.91%	377,085,167
State Street Corporation	6.42%	101,340,194
Blackrock Inc.	6.11%	96,396,889
Vanguard Capital Management LLC	4.93%	77,715,132
JPMORGAN CHASE & CO	2.76%	43,578,279
Vanguard Portfolio Management LLC	1.92%	30,240,801
Geode Capital Management, LLC	1.76%	27,702,674
Fisher Asset Management, LLC	1.62%	25,600,068

⚠️ Very high debt-to-equity — leverage risk

Risk Analysis

Beta (Market Risk)

1.22

Moderate volatility — moves slightly more than market

Short Interest

0.0% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

5.02x

High leverage — significant financial risk

Current Ratio

1.96x

Adequate liquidity

52-Week Price Range

Low: $130.90 Current: $223.17 High: $230.47

Currently at 93% of 52-week range