Morgan Stanley Intrinsic Value – Morgan Stanley Reports Second Quarter Earnings Results for FY2023
August 1, 2023
🌥️Earnings Overview
On July 18, 2023, Morgan Stanley ($NYSE:MS) revealed its earnings for the second quarter of FY2023 ending June 30, 2023, with total revenue amounting to USD 12.6 billion – up 2.7% year-on-year. However, their reported net income dropped 12.8% to USD 2.2 billion.
Stock Price
Its stock opened the day at $87.5 and closed the day with a 6.4% increase, closing at $91.9, compared to the prior closing price of 86.4. This upturn was driven by the strong performance of the company’s businesses during the quarter, including its investment banking, wealth management, and institutional securities businesses. Overall, Morgan Stanley‘s Q2 results exceeded market expectations and drove its stock price to a new high for the year. With the company’s strong performance, it looks well-positioned to continue achieving positive financial results in the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Morgan Stanley. More…
| Total Revenues | Net Income | Net Margin |
| 50.26k | 9.49k | 20.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Morgan Stanley. More…
| Operations | Investing | Financing |
| -16.5k | -11.63k | 22.71k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Morgan Stanley. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.2M | 1.1M | 60.37 |
Key Ratios Snapshot
Some of the financial key ratios for Morgan Stanley are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.0% | – | – |
| FCF Margin | ROE | ROA |
| -39.1% | 7.9% | 0.7% |
Analysis – Morgan Stanley Intrinsic Value
At GoodWhale, we have conducted an analysis of the fundamentals of MORGAN STANLEY. Our proprietary Valuation Line has revealed that the intrinsic value of MORGAN STANLEY share is around $85.4. Right now MORGAN STANLEY stock is traded at $91.9, which is a fair price, though slightly overvalued by 7.6%. More…
Peers
Morgan Stanley is an American multinational investment bank and financial services company headquartered in New York City. The company’s name is derived from its original Wall Street address, which was 65 Broadway until the building was destroyed in the September 11 attacks. Goldman Sachs Group Inc, JPMorgan Chase & Co, Bank of America Corp are its competitors.
– Goldman Sachs Group Inc ($NYSE:GS)
Goldman Sachs Group Inc. is an American multinational investment bank and financial services company headquartered in New York City. It offers services in investment banking, asset management, and securities services. As of 2020, it had the fifth-highest market capitalization of any company in the United States at $81.6 billion. Goldman Sachs has a return on equity of 9.0% as of 2022. The company has been involved in several controversies in recent years, including the 1MDB scandal.
– JPMorgan Chase & Co ($NYSE:JPM)
JPMorgan Chase & Co is an investment bank and financial services company headquartered in New York City. The company has a market capitalization of $373.1 billion as of 2022. JPMorgan Chase & Co offers a variety of services including investment banking, asset management, treasury and securities services, and commercial banking. The company has a diversified client base including corporations, governments, and individuals.
– Bank of America Corp ($NYSE:BAC)
Bank of America Corporation (abbreviated as BofA) is an American multinational banking and financial services holding company headquartered in Charlotte, North Carolina with central hubs in New York City, London, Hong Kong, Minneapolis, and Toronto. It is the second largest bank holding company in the United States by assets. As of 2020, Bank of America was ranked 26th on the Fortune 500 rankings of the largest United States corporations by total revenue. The company serves clients in more than 150 countries. It is a member of the World Bank Group’s International Finance Corporation (IFC), the United Nations’ Global Compact, and Dow Jones Sustainability Index (DJSI) World and Europe.
Bank of America’s market cap is $287.93B as of 2022.
Summary
Morgan Stanley reported strong revenue performance for the second quarter of FY2023, with a 2.7% increase year-on-year. However, reported net income decreased by 12.8%, standing at USD 2.2 billion. Although investors initially responded positively to the news, with the stock price rising on the day of the announcement, they later reacted negatively as the long-term implications of the weak net income became clear. In light of this, investors should exercise caution when considering investments in Morgan Stanley and focus their attention on the company’s future financial performance and prospects.
