Morgan Stanley (0QYU.L) Quality Triple Check
Three proven quantitative models combined: financial strength (Piotroski), bankruptcy risk (Altman), and earnings manipulation detection (Beneish).
Earnings Manipulation Warning
The Beneish M-Score of -0.64 is above the -1.78 threshold, indicating a higher probability of earnings manipulation. When this flag is raised, the ValueMarkers Safety score is capped at 30.
Quality Concerns
Multiple checks flag potential issues. Investors should exercise caution and investigate further.
Piotroski F-Score
Measures financial strength and operational quality
Altman Z-Score
High bankruptcy risk
Beneish M-Score
Score above -1.78 signals possible earnings manipulation
What Each Model Measures
Piotroski F-Score (0-9)
Created by Joseph Piotroski, this tests 9 binary criteria across profitability, leverage/liquidity, and operating efficiency. A score of 7+ indicates strong financial health. Used to separate high-quality value stocks from potential value traps.
Altman Z-Score
Developed by Edward Altman, this formula predicts the probability of bankruptcy within two years. It combines five financial ratios (working capital, retained earnings, EBIT, market value of equity, and sales) weighted against total assets. Above 3.0 is safe, below 1.8 signals distress.
Beneish M-Score
Developed by Messod Beneish, this model detects the likelihood of earnings manipulation using 8 financial ratios. A score above -1.78 flags potential manipulation. ValueMarkers enforces a hard floor: when the Beneish M-Score exceeds -1.78, the safety score is capped at 30.
Related Resources
0QYU.L Full Analysis
120 indicators, 5-pillar scoring, and complete financials
0QYU.L Piotroski F-Score
Detailed 9-criteria breakdown
Altman Z-Score - Glossary
Full definition and formula
Beneish M-Score - Glossary
Understanding earnings manipulation detection
VMCI Methodology
How the 5-pillar scoring system works