MSCI INC (3HM.DE) Stock Fundamental Analysis
FRA:3HM - Deutsche Boerse Ag - US55354G1004 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 3HM. 3HM was compared to 107 industry peers in the Capital Markets industry. 3HM scores excellent on profitability, but there are some minor concerns on its financial health. 3HM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
3HM had positive earnings in the past year.
3HM had a positive operating cash flow in the past year.
In the past 5 years 3HM has always been profitable.
3HM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.36%, 3HM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 33.46%, 3HM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
3HM had an Average Return On Invested Capital over the past 3 years of 29.39%. This is significantly above the industry average of 8.19%.
The last Return On Invested Capital (33.46%) for 3HM is above the 3 year average (29.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.36% | ||
| ROE | N/A | ||
| ROIC | 33.46% |
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
3HM has a Profit Margin of 39.08%. This is amongst the best in the industry. 3HM outperforms 84.11% of its industry peers.
In the last couple of years the Profit Margin of 3HM has remained more or less at the same level.
3HM has a better Operating Margin (53.60%) than 90.65% of its industry peers.
3HM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 82.11%, 3HM is doing good in the industry, outperforming 79.44% of the companies in the same industry.
In the last couple of years the Gross Margin of 3HM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.6% | ||
| PM (TTM) | 39.08% | ||
| GM | 82.11% |
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 3HM has been reduced compared to 1 year ago.
3HM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 3HM is higher compared to a year ago.
2.2 Solvency
3HM has an Altman-Z score of 6.86. This indicates that 3HM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 3HM (6.86) is better than 91.59% of its industry peers.
The Debt to FCF ratio of 3HM is 3.30, which is a good value as it means it would take 3HM, 3.30 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.30, 3HM belongs to the best of the industry, outperforming 80.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 6.86 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.84 indicates that 3HM may have some problems paying its short term obligations.
3HM has a Current ratio of 0.84. This is comparable to the rest of the industry: 3HM outperforms 55.14% of its industry peers.
A Quick Ratio of 0.84 indicates that 3HM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, 3HM is in line with its industry, outperforming 57.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
3HM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.72%, which is quite good.
Measured over the past years, 3HM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.74% on average per year.
3HM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.67%.
Measured over the past years, 3HM shows a quite strong growth in Revenue. The Revenue has been growing by 12.89% on average per year.
EPS 1Y (TTM)12.72%
EPS 3Y15.17%
EPS 5Y18.74%
EPS Q2Q%13.64%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y11.81%
Revenue growth 5Y12.89%
Sales Q2Q%9.69%
3.2 Future
3HM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.09% yearly.
The Revenue is expected to grow by 8.17% on average over the next years. This is quite good.
EPS Next Y12.65%
EPS Next 2Y12.19%
EPS Next 3Y12.14%
EPS Next 5Y12.09%
Revenue Next Year7.51%
Revenue Next 2Y7.87%
Revenue Next 3Y7.93%
Revenue Next 5Y8.17%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 35.57, 3HM can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as 3HM.
The average S&P500 Price/Earnings ratio is at 26.29. 3HM is valued slightly more expensive when compared to this.
3HM is valuated quite expensively with a Price/Forward Earnings ratio of 29.15.
3HM's Price/Forward Earnings ratio is in line with the industry average.
3HM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.17, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.57 | ||
| Fwd PE | 29.15 |
4.2 Price Multiples
63.55% of the companies in the same industry are more expensive than 3HM, based on the Enterprise Value to EBITDA ratio.
70.09% of the companies in the same industry are more expensive than 3HM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.28 | ||
| EV/EBITDA | 27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 3HM does not grow enough to justify the current Price/Earnings ratio.
3HM has an outstanding profitability rating, which may justify a higher PE ratio.
3HM's earnings are expected to grow with 12.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.81
PEG (5Y)1.9
EPS Next 2Y12.19%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, 3HM has a reasonable but not impressive dividend return.
3HM's Dividend Yield is comparable with the industry average which is at 6.30.
With a Dividend Yield of 1.27, 3HM pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
On average, the dividend of 3HM grows each year by 19.74%, which is quite nice.
Dividend Growth(5Y)19.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
45.68% of the earnings are spent on dividend by 3HM. This is a bit on the high side, but may be sustainable.
3HM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.68%
EPS Next 2Y12.19%
EPS Next 3Y12.14%
FRA:3HM (6/2/2025, 7:00:00 PM)
488.4
-6.2 (-1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners93.37%
Inst Owner ChangeN/A
Ins Owners2.87%
Ins Owner ChangeN/A
Market Cap37.79B
Analysts76.8
Price Target562.13 (15.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend5.73
Dividend Growth(5Y)19.74%
DP45.68%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.95%
Min EPS beat(2)0.18%
Max EPS beat(2)3.71%
EPS beat(4)4
Avg EPS beat(4)1.21%
Min EPS beat(4)0.18%
Max EPS beat(4)3.71%
EPS beat(8)8
Avg EPS beat(8)2.39%
EPS beat(12)12
Avg EPS beat(12)2.32%
EPS beat(16)15
Avg EPS beat(16)2.4%
Revenue beat(2)0
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)-1.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)-0.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.79%
Revenue beat(12)2
Avg Revenue beat(12)-1.18%
Revenue beat(16)3
Avg Revenue beat(16)-1.02%
PT rev (1m)4.44%
PT rev (3m)-13.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)-0.56%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.57 | ||
| Fwd PE | 29.15 | ||
| P/S | 14.77 | ||
| P/FCF | 31.28 | ||
| P/OCF | 28.7 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 27 |
EPS(TTM)13.73
EY2.81%
EPS(NY)16.75
Fwd EY3.43%
FCF(TTM)15.61
FCFY3.2%
OCF(TTM)17.01
OCFY3.48%
SpS33.07
BVpS-10.85
TBVpS-53.92
PEG (NY)2.81
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.36% | ||
| ROE | N/A | ||
| ROCE | 40.39% | ||
| ROIC | 33.46% | ||
| ROICexc | 36.85% | ||
| ROICexgc | N/A | ||
| OM | 53.6% | ||
| PM (TTM) | 39.08% | ||
| GM | 82.11% | ||
| FCFM | 47.21% |
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-Score6
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.3 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 66.19% | ||
| Cap/Sales | 4.23% | ||
| Interest Coverage | 8.72 | ||
| Cash Conversion | 85.75% | ||
| Profit Quality | 120.82% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 6.86 |
F-Score6
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)12.72%
EPS 3Y15.17%
EPS 5Y18.74%
EPS Q2Q%13.64%
EPS Next Y12.65%
EPS Next 2Y12.19%
EPS Next 3Y12.14%
EPS Next 5Y12.09%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y11.81%
Revenue growth 5Y12.89%
Sales Q2Q%9.69%
Revenue Next Year7.51%
Revenue Next 2Y7.87%
Revenue Next 3Y7.93%
Revenue Next 5Y8.17%
EBIT growth 1Y11.12%
EBIT growth 3Y12.53%
EBIT growth 5Y15.13%
EBIT Next Year19.23%
EBIT Next 3Y12.43%
EBIT Next 5Y11.68%
FCF growth 1Y33.14%
FCF growth 3Y16.55%
FCF growth 5Y16.16%
OCF growth 1Y34.78%
OCF growth 3Y17.06%
OCF growth 5Y16.18%