MSCI INC (MSCI) Stock Fundamental Analysis
NYSE:MSCI - New York Stock Exchange, Inc. - US55354G1004 - Common Stock - Currency: USD
Taking everything into account, MSCI scores 5 out of 10 in our fundamental rating. MSCI was compared to 233 industry peers in the Capital Markets industry. MSCI has an excellent profitability rating, but there are some minor concerns on its financial health. MSCI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MSCI had positive earnings in the past year.
In the past year MSCI had a positive cash flow from operations.
In the past 5 years MSCI has always been profitable.
In the past 5 years MSCI always reported a positive cash flow from operatings.
1.2 Ratios
MSCI has a Return On Assets of 21.36%. This is amongst the best in the industry. MSCI outperforms 99.57% of its industry peers.
The Return On Invested Capital of MSCI (33.46%) is better than 99.14% 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 7.84%.
The last Return On Invested Capital (33.46%) for MSCI 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
With an excellent Profit Margin value of 39.08%, MSCI belongs to the best of the industry, outperforming 82.83% of the companies in the same industry.
In the last couple of years the Profit Margin of MSCI has remained more or less at the same level.
MSCI has a better Operating Margin (53.60%) than 89.27% of its industry peers.
MSCI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 82.11%, MSCI belongs to the top of the industry, outperforming 85.41% of the companies in the same industry.
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 | 53.6% | ||
| 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
Compared to 1 year ago, MSCI has less shares outstanding
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
An Altman-Z score of 7.08 indicates that MSCI is not in any danger for bankruptcy at the moment.
MSCI has a Altman-Z score of 7.08. This is amongst the best in the industry. MSCI outperforms 91.42% of its industry peers.
The Debt to FCF ratio of MSCI is 3.30, which is a good value as it means it would take MSCI, 3.30 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.30, MSCI is doing good in the industry, outperforming 74.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 7.08 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.84 indicates that MSCI may have some problems paying its short term obligations.
The Current ratio of MSCI (0.84) is worse than 65.24% of its industry peers.
MSCI has a Quick Ratio of 0.84. This is a bad value and indicates that MSCI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.84, MSCI is doing worse than 64.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.72% over the past year.
The Earnings Per Share has been growing by 18.74% on average over the past years. This is quite good.
The Revenue has grown by 11.67% in the past year. This is quite good.
The Revenue has been growing by 12.89% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 11.73% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.71% on average over the next years.
EPS Next Y12.65%
EPS Next 2Y12.19%
EPS Next 3Y12.14%
EPS Next 5Y11.73%
Revenue Next Year7.51%
Revenue Next 2Y7.87%
Revenue Next 3Y7.93%
Revenue Next 5Y7.71%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 37.48, the valuation of MSCI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MSCI indicates a slightly more expensive valuation: MSCI is more expensive than 75.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MSCI to the average of the S&P500 Index (27.45), we can say MSCI is valued slightly more expensively.
The Price/Forward Earnings ratio is 30.72, which means the current valuation is very expensive for MSCI.
Based on the Price/Forward Earnings ratio, MSCI is valued a bit more expensive than the industry average as 71.24% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of MSCI to the average of the S&P500 Index (21.90), we can say MSCI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.48 | ||
| Fwd PE | 30.72 |
4.2 Price Multiples
65.24% of the companies in the same industry are more expensive than MSCI, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as MSCI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.96 | ||
| EV/EBITDA | 28.33 |
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 12.14% in the coming years.
PEG (NY)2.96
PEG (5Y)2
EPS Next 2Y12.19%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
MSCI has a Yearly Dividend Yield of 1.27%.
MSCI's Dividend Yield is slightly below the industry average, which is at 8.00.
Compared to an average S&P500 Dividend Yield of 2.42, MSCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of MSCI is nicely growing with an annual growth rate of 19.74%!
MSCI has paid a dividend for at least 10 years, which is a reliable track record.
MSCI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)19.74%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
45.68% 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.
DP45.68%
EPS Next 2Y12.19%
EPS Next 3Y12.14%
587.74
+4.89 (+0.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners93.46%
Inst Owner Change0.45%
Ins Owners2.92%
Ins Owner Change1.14%
Market Cap45.47B
Analysts76.8
Price Target629.89 (7.17%)
Short Float %1.51%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend6.49
Dividend Growth(5Y)19.74%
DP45.68%
Div Incr Years10
Div Non Decr Years10
Ex-Date
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)0%
PT rev (3m)-7.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.48 | ||
| Fwd PE | 30.72 | ||
| P/S | 15.56 | ||
| P/FCF | 32.96 | ||
| P/OCF | 30.25 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.33 |
EPS(TTM)15.68
EY2.67%
EPS(NY)19.13
Fwd EY3.26%
FCF(TTM)17.83
FCFY3.03%
OCF(TTM)19.43
OCFY3.31%
SpS37.77
BVpS-12.39
TBVpS-61.57
PEG (NY)2.96
PEG (5Y)2
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 | 7.08 |
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 5Y11.73%
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 5Y7.71%
EBIT growth 1Y11.12%
EBIT growth 3Y12.53%
EBIT growth 5Y15.13%
EBIT Next Year19.23%
EBIT Next 3Y12.43%
EBIT Next 5Y11.1%
FCF growth 1Y33.14%
FCF growth 3Y16.55%
FCF growth 5Y16.16%
OCF growth 1Y34.78%
OCF growth 3Y17.06%
OCF growth 5Y16.18%