MSCI INC (MSCI) Stock Fundamental Analysis
NYSE:MSCI - New York Stock Exchange, Inc. - US55354G1004 - Common Stock - Currency: USD
Overall MSCI gets a fundamental rating of 5 out of 10. We evaluated MSCI against 225 industry peers in the Capital Markets industry. While MSCI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, MSCI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MSCI was profitable.
In the past year MSCI had a positive cash flow from operations.
MSCI had positive earnings in each of the past 5 years.
MSCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MSCI (20.37%) is better than 99.09% of its industry peers.
The Return On Invested Capital of MSCI (32.81%) is better than 99.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MSCI is significantly above the industry average of 6.76%.
The 3 year average ROIC (29.39%) for MSCI is below the current ROIC(32.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.37% | ||
| ROE | N/A | ||
| ROIC | 32.81% |
ROA(3y)19.53%
ROA(5y)17.22%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.39%
ROIC(5y)26.42%
1.3 Margins
The Profit Margin of MSCI (38.83%) is better than 79.00% of its industry peers.
MSCI's Profit Margin has been stable in the last couple of years.
MSCI has a better Operating Margin (53.52%) than 91.78% of its industry peers.
In the last couple of years the Operating Margin of MSCI has grown nicely.
The Gross Margin of MSCI (81.99%) is better than 84.02% of its industry peers.
MSCI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.52% | ||
| PM (TTM) | 38.83% | ||
| GM | 81.99% |
OM growth 3Y0.65%
OM growth 5Y1.98%
PM growth 3Y3.01%
PM growth 5Y1.43%
GM growth 3Y-0.19%
GM growth 5Y0.23%
2. Health
2.1 Basic Checks
The number of shares outstanding for MSCI has been reduced compared to 1 year ago.
The number of shares outstanding for MSCI has been reduced compared to 5 years ago.
Compared to 1 year ago, MSCI has a worse debt to assets ratio.
2.2 Solvency
MSCI has an Altman-Z score of 6.82. This indicates that MSCI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.82, MSCI belongs to the top of the industry, outperforming 90.87% of the companies in the same industry.
MSCI has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as MSCI would need 3.25 years to pay back of all of its debts.
The Debt to FCF ratio of MSCI (3.25) is better than 73.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 6.82 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MSCI has a Current Ratio of 0.85. This is a bad value and indicates that MSCI is not financially healthy enough and could expect problems in meeting its short term obligations.
MSCI has a Current ratio (0.85) which is in line with its industry peers.
A Quick Ratio of 0.85 indicates that MSCI may have some problems paying its short term obligations.
MSCI has a Quick ratio (0.85) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.34% over the past year.
The Earnings Per Share has been growing by 18.74% on average over the past years. This is quite good.
Looking at the last year, MSCI shows a quite strong growth in Revenue. The Revenue has grown by 12.94% in the last year.
Measured over the past years, MSCI shows a quite strong growth in Revenue. The Revenue has been growing by 12.89% on average per year.
EPS 1Y (TTM)12.34%
EPS 3Y15.17%
EPS 5Y18.74%
EPS Q2Q%13.59%
Revenue 1Y (TTM)12.94%
Revenue growth 3Y11.81%
Revenue growth 5Y12.89%
Sales Q2Q%7.74%
3.2 Future
MSCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.07% yearly.
MSCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.03% yearly.
EPS Next Y13.64%
EPS Next 2Y13.35%
EPS Next 3Y12.86%
EPS Next 5Y13.07%
Revenue Next Year8.6%
Revenue Next 2Y8.83%
Revenue Next 3Y8.83%
Revenue Next 5Y7.03%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MSCI is valuated quite expensively with a Price/Earnings ratio of 38.05.
77.17% of the companies in the same industry are cheaper than MSCI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, MSCI is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 33.48, the valuation of MSCI can be described as expensive.
73.52% of the companies in the same industry are cheaper than MSCI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. MSCI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.05 | ||
| Fwd PE | 33.48 |
4.2 Price Multiples
65.30% of the companies in the same industry are more expensive than MSCI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSCI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.39 | ||
| EV/EBITDA | 28.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSCI does not grow enough to justify the current Price/Earnings ratio.
MSCI has an outstanding profitability rating, which may justify a higher PE ratio.
MSCI's earnings are expected to grow with 12.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.79
PEG (5Y)2.03
EPS Next 2Y13.35%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
MSCI has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 10.00, MSCI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.29, MSCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
On average, the dividend of MSCI grows each year by 19.74%, which is quite nice.
MSCI has been paying a dividend for at least 10 years, so it has a reliable track record.
MSCI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)19.74%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
45.90% of the earnings are spent on dividend by MSCI. This is a bit on the high side, but may be sustainable.
The dividend of MSCI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.9%
EPS Next 2Y13.35%
EPS Next 3Y12.86%
578.34
+3.99 (+0.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners93.57%
Inst Owner Change2.04%
Ins Owners2.8%
Ins Owner Change1.4%
Market Cap44.91B
Analysts77.5
Price Target681.62 (17.86%)
Short Float %1.08%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend6.49
Dividend Growth(5Y)19.74%
DP45.9%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.04%
Min EPS beat(2)0.37%
Max EPS beat(2)3.71%
EPS beat(4)4
Avg EPS beat(4)1.19%
Min EPS beat(4)0.1%
Max EPS beat(4)3.71%
EPS beat(8)8
Avg EPS beat(8)2.75%
EPS beat(12)12
Avg EPS beat(12)2.68%
EPS beat(16)15
Avg EPS beat(16)2.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)-0.72%
Revenue beat(4)0
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)-0.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.86%
Revenue beat(12)2
Avg Revenue beat(12)-1.23%
Revenue beat(16)3
Avg Revenue beat(16)-0.95%
PT rev (1m)0.28%
PT rev (3m)3.91%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.05 | ||
| Fwd PE | 33.48 | ||
| P/S | 15.72 | ||
| P/FCF | 32.39 | ||
| P/OCF | 29.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.49 |
EPS(TTM)15.2
EY2.63%
EPS(NY)17.27
Fwd EY2.99%
FCF(TTM)17.86
FCFY3.09%
OCF(TTM)19.34
OCFY3.34%
SpS36.78
BVpS-12.11
TBVpS-61.34
PEG (NY)2.79
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.37% | ||
| ROE | N/A | ||
| ROCE | 39.6% | ||
| ROIC | 32.81% | ||
| ROICexc | 36.66% | ||
| ROICexgc | N/A | ||
| OM | 53.52% | ||
| PM (TTM) | 38.83% | ||
| GM | 81.99% | ||
| FCFM | 48.55% |
ROA(3y)19.53%
ROA(5y)17.22%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.39%
ROIC(5y)26.42%
ROICexc(3y)35.12%
ROICexc(5y)35.16%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)35.48%
ROCE(5y)31.9%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y5.35%
ROICexc growth 5Y1.03%
OM growth 3Y0.65%
OM growth 5Y1.98%
PM growth 3Y3.01%
PM growth 5Y1.43%
GM growth 3Y-0.19%
GM growth 5Y0.23%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 63.6% | ||
| Cap/Sales | 4.03% | ||
| Interest Coverage | 8.49 | ||
| Cash Conversion | 87.84% | ||
| Profit Quality | 125.01% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 6.82 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)64.15%
Cap/Depr(5y)61.29%
Cap/Sales(3y)3.62%
Cap/Sales(5y)3.37%
Profit Quality(3y)114.05%
Profit Quality(5y)117.82%
High Growth Momentum
Growth
EPS 1Y (TTM)12.34%
EPS 3Y15.17%
EPS 5Y18.74%
EPS Q2Q%13.59%
EPS Next Y13.64%
EPS Next 2Y13.35%
EPS Next 3Y12.86%
EPS Next 5Y13.07%
Revenue 1Y (TTM)12.94%
Revenue growth 3Y11.81%
Revenue growth 5Y12.89%
Sales Q2Q%7.74%
Revenue Next Year8.6%
Revenue Next 2Y8.83%
Revenue Next 3Y8.83%
Revenue Next 5Y7.03%
EBIT growth 1Y10.39%
EBIT growth 3Y12.53%
EBIT growth 5Y15.13%
EBIT Next Year20.68%
EBIT Next 3Y13.48%
EBIT Next 5Y12.79%
FCF growth 1Y21.07%
FCF growth 3Y16.55%
FCF growth 5Y16.16%
OCF growth 1Y21.49%
OCF growth 3Y17.06%
OCF growth 5Y16.18%