Morgan Stanley Direct Lending Fund (MSDL) Fundamental Analysis: Revenue, Earnings & Valuation

7.33 / 10

Outperform

MSDL's fundamental assessment stands at 7.3/10, indicating adequate financial health. Key positives include a strong Net profit margin (though negative in absolute value, its ranking is high), robust Days sales outstanding, and healthy Net cash flow from operating activities (YoY growth of 135%). However, weaknesses such as a low Asset-MV ratio and elevated Income tax / Total profit ratio temper the outlook. Overall, the fundamentals are supportive but not exceptional, aligning with an 'Outperform' rating.

Analysis Checks(6/10)

Revenue-MV

Value-0.64

Score3/3

Weight25.74%

1M Return32.65%

Days sales outstanding

Value72.55

Score2/3

Weight1.15%

1M Return1.29%

Profit-MV

Value1.07

Score3/3

Weight63.60%

1M Return74.59%

Net income-Revenue

Value0.56

Score2/3

Weight3.73%

1M Return3.69%

PB-ROE

Value-0.69

Score0/3

Weight-0.23%

1M Return-0.26%

Net cash flow from operating activities (YoY growth rate %)

Value135.03

Score2/3

Weight1.79%

1M Return2.12%

Net profit margin (%)

Value-2972.64

Score2/3

Weight0.77%

1M Return0.86%

Income tax / Total profit (%)

Value0.91

Score0/3

Weight-1.88%

1M Return-2.64%

Asset-MV

Value-0.50

Score0/3

Weight1.87%

1M Return2.09%

Cash-MV

Value-0.12

Score1/3

Weight3.46%

1M Return3.46%

Is MSDL undervalued or overvalued?

MSDL scores 7.33/10 on fundamentals and holds a Discounted valuation at present. Backed by its 5.17% ROE, 35.91% net margin, 9.09 P/E ratio, 0.74 P/B ratio, and -34.78% earnings growth, these metrics solidify its Outperform investment rating.