Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- Morgan Stanley (NYSE: MS) has been reiterated by TheStreet Ratings as a hold with a ratings score of C- . The company's strongest point has been its strong cash flow from operations. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
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- The revenue fell significantly faster than the industry average of 26.8%. Since the same quarter one year prior, revenues fell by 40.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, MS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- Net operating cash flow has decreased to $6,906.00 million or 21.62% when compared to the same quarter last year. Despite a decrease in cash flow of 21.62%, MORGAN STANLEY is still significantly exceeding the industry average of -311.94%.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Capital Markets industry and the overall market, MORGAN STANLEY's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for MORGAN STANLEY is currently extremely low, coming in at 9.20%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -15.00% is significantly below that of the industry average.
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