MSCI INC (MSCI) Stock Fundamental Analysis
NYSE:MSCI - New York Stock Exchange, Inc. - US55354G1004 - Common Stock
MSCI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 224 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. MSCI shows excellent growth, but is valued quite expensive already. These ratings would make MSCI suitable for growth investing!
1. Profitability
1.1 Basic Checks
MSCI had positive earnings in the past year.
MSCI had a positive operating cash flow in the past year.
MSCI had positive earnings in each of the past 5 years.
In the past 5 years MSCI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 22.31%, MSCI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of MSCI (31.00%) is better than 99.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MSCI is significantly above the industry average of 6.66%.
The last Return On Invested Capital (31.00%) for MSCI is above the 3 year average (25.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.31% | ||
| ROE | N/A | ||
| ROIC | 31% |
ROA(3y)17.14%
ROA(5y)15.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.66%
ROIC(5y)23.88%
1.3 Margins
Looking at the Profit Margin, with a value of 43.06%, MSCI belongs to the top of the industry, outperforming 87.21% of the companies in the same industry.
MSCI's Profit Margin has improved in the last couple of years.
The Operating Margin of MSCI (53.31%) is better than 88.13% of its industry peers.
In the last couple of years the Operating Margin of MSCI has grown nicely.
MSCI's Gross Margin of 81.97% is amongst the best of the industry. MSCI outperforms 84.02% of its industry peers.
In the last couple of years the Gross Margin of MSCI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.31% | ||
| PM (TTM) | 43.06% | ||
| GM | 81.97% |
OM growth 3Y1.61%
OM growth 5Y2.71%
PM growth 3Y8.56%
PM growth 5Y5.1%
GM growth 3Y-0.18%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
The number of shares outstanding for MSCI has been reduced compared to 1 year ago.
MSCI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MSCI has been reduced compared to a year ago.
2.2 Solvency
MSCI has an Altman-Z score of 7.31. This indicates that MSCI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MSCI (7.31) is better than 91.78% of its industry peers.
MSCI has a debt to FCF ratio of 3.30. This is a good value and a sign of high solvency as MSCI would need 3.30 years to pay back of all of its debts.
The Debt to FCF ratio of MSCI (3.30) is better than 73.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 7.31 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MSCI has a Current Ratio of 0.93. This is a bad value and indicates that MSCI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.93, MSCI perfoms like the industry average, outperforming 43.84% of the companies in the same industry.
MSCI has a Quick Ratio of 0.93. 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 Quick ratio (0.93) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.84% over the past year.
Measured over the past years, MSCI shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.75% on average per year.
MSCI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.05%.
The Revenue has been growing by 12.02% on average over the past years. This is quite good.
EPS 1Y (TTM)15.84%
EPS 3Y20%
EPS 5Y20.75%
EPS Q2Q%11.88%
Revenue 1Y (TTM)16.05%
Revenue growth 3Y14.26%
Revenue growth 5Y12.02%
Sales Q2Q%15.87%
3.2 Future
Based on estimates for the next years, MSCI will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.11% on average per year.
MSCI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.83% yearly.
EPS Next Y13.06%
EPS Next 2Y13.36%
EPS Next 3Y13.37%
EPS Next 5Y13.11%
Revenue Next Year14.39%
Revenue Next 2Y11.84%
Revenue Next 3Y11%
Revenue Next 5Y9.83%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.73 indicates a quite expensive valuation of MSCI.
Based on the Price/Earnings ratio, MSCI is valued a bit more expensive than 77.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. MSCI is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 35.28, which means the current valuation is very expensive for MSCI.
75.80% of the companies in the same industry are cheaper than MSCI, based on the Price/Forward Earnings ratio.
MSCI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.73 | ||
| Fwd PE | 35.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MSCI is valued a bit cheaper than 60.73% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MSCI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.38 | ||
| EV/EBITDA | 31.36 |
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.
The excellent profitability rating of MSCI may justify a higher PE ratio.
A more expensive valuation may be justified as MSCI's earnings are expected to grow with 13.37% in the coming years.
PEG (NY)3.19
PEG (5Y)2.01
EPS Next 2Y13.36%
EPS Next 3Y13.37%
5. Dividend
5.1 Amount
MSCI has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 9.45, MSCI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.28, MSCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of MSCI is nicely growing with an annual growth rate of 23.10%!
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)23.1%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
MSCI pays out 40.88% of its income as dividend. 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.
DP40.88%
EPS Next 2Y13.36%
EPS Next 3Y13.37%
MSCI INC
NYSE:MSCI (1/22/2025, 1:44:41 PM)
613.49
-3.89 (-0.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners93.57%
Inst Owner Change0.06%
Ins Owners2.8%
Ins Owner Change-0.04%
Market Cap48.08B
Analysts77.5
Price Target679.71 (10.79%)
Short Float %1.08%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend5.54
Dividend Growth(5Y)23.1%
DP40.88%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.47%
Min EPS beat(2)0.37%
Max EPS beat(2)0.58%
EPS beat(4)4
Avg EPS beat(4)2.68%
Min EPS beat(4)0.1%
Max EPS beat(4)9.66%
EPS beat(8)8
Avg EPS beat(8)2.4%
EPS beat(12)11
Avg EPS beat(12)2.26%
EPS beat(16)14
Avg EPS beat(16)2.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)-0.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)2.09%
Revenue beat(8)2
Avg Revenue beat(8)-0.67%
Revenue beat(12)2
Avg Revenue beat(12)-1.05%
Revenue beat(16)3
Avg Revenue beat(16)-0.95%
PT rev (1m)3.08%
PT rev (3m)11.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.82%
EPS NY rev (1m)0%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.73 | ||
| Fwd PE | 35.28 | ||
| P/S | 17.15 | ||
| P/FCF | 35.38 | ||
| P/OCF | 32.93 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.36 |
EPS(TTM)14.7
EY2.4%
EPS(NY)17.39
Fwd EY2.83%
FCF(TTM)17.34
FCFY2.83%
OCF(TTM)18.63
OCFY3.04%
SpS35.76
BVpS-9.58
TBVpS-58.68
PEG (NY)3.19
PEG (5Y)2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.31% | ||
| ROE | N/A | ||
| ROCE | 37.06% | ||
| ROIC | 31% | ||
| ROICexc | 35.4% | ||
| ROICexgc | N/A | ||
| OM | 53.31% | ||
| PM (TTM) | 43.06% | ||
| GM | 81.97% | ||
| FCFM | 48.49% |
ROA(3y)17.14%
ROA(5y)15.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.66%
ROIC(5y)23.88%
ROICexc(3y)33.68%
ROICexc(5y)35.13%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)30.68%
ROCE(5y)28.55%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-6.07%
ROICexc growth 5Y-0.96%
OM growth 3Y1.61%
OM growth 5Y2.71%
PM growth 3Y8.56%
PM growth 5Y5.1%
GM growth 3Y-0.18%
GM growth 5Y0.59%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.3 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 57.4% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 8.2 | ||
| Cash Conversion | 87.42% | ||
| Profit Quality | 112.59% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 7.31 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)61.34%
Cap/Depr(5y)62.12%
Cap/Sales(3y)3.26%
Cap/Sales(5y)3.25%
Profit Quality(3y)112.59%
Profit Quality(5y)116.08%
High Growth Momentum
Growth
EPS 1Y (TTM)15.84%
EPS 3Y20%
EPS 5Y20.75%
EPS Q2Q%11.88%
EPS Next Y13.06%
EPS Next 2Y13.36%
EPS Next 3Y13.37%
EPS Next 5Y13.11%
Revenue 1Y (TTM)16.05%
Revenue growth 3Y14.26%
Revenue growth 5Y12.02%
Sales Q2Q%15.87%
Revenue Next Year14.39%
Revenue Next 2Y11.84%
Revenue Next 3Y11%
Revenue Next 5Y9.83%
EBIT growth 1Y12.96%
EBIT growth 3Y16.1%
EBIT growth 5Y15.05%
EBIT Next Year24.09%
EBIT Next 3Y14.72%
EBIT Next 5Y12.94%
FCF growth 1Y38.24%
FCF growth 3Y14.64%
FCF growth 5Y15.23%
OCF growth 1Y37.78%
OCF growth 3Y15.08%
OCF growth 5Y15.06%