Morgan Stanley (MS)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a durable business that earns good returns without excessive leverage. Morgan Stanley is a stalwart in FairStock's Lynch category, with profit compounding about 8.9% a year over five years. Filed results show FY2025 net income of $16.9B, up from $13.4B in FY2024 and $9.1B in FY2023. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $5.6B and diluted EPS was $3.46, versus $3.5B and $2.13 in fiscal Q2 2025. That is real earnings progress. The business has a moat in wealth management and institutional relationships, but capital markets are cyclical and competitive. At the 2026-10-13 close of $186.64, FairStock calculates a P/E of 15.08 and P/B of 2.75. The P/B is not a bargain for a broker with D/E of 5.17. FairStock's ROE is 17.97%, which is healthy, and PEG is 0.82, suggesting growth is not richly priced. The dividend yield is 2.27%. However, FairStock's Piotroski F-Score is only 2/9, and the FairStock Score is 55/100. The bank-specific measures I would want—CET1 capital ratio, net interest margin and combined ratio—are not in the data, so leverage and credit/underwriting risk cannot be fully assessed. Overall: a good franchise at a fair-to-full price, with earnings momentum but limited margin of safety until capital strength is verified.

In plain English: Morgan Stanley is a large financial company that helps companies, governments and people raise money, trade and manage wealth. It has made solid profits in recent years, and the current stock price looks reasonable compared with those profits. Still, it uses a lot of borrowed money, and some important safety measures for banks are not included in the figures provided.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer