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 237 industry peers in the Capital Markets industry. MSCI scores excellent on profitability, but there are some minor concerns on its financial health. MSCI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MSCI was profitable.
MSCI had a positive operating cash flow in the past year.
Each year in the past 5 years MSCI has been profitable.
Each year in the past 5 years MSCI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.93%, MSCI belongs to the top of the industry, outperforming 99.16% of the companies in the same industry.
The Return On Invested Capital of MSCI (34.14%) is better than 99.58% 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 7.85%.
The 3 year average ROIC (29.39%) for MSCI is below the current ROIC(34.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.93% | ||
| ROE | N/A | ||
| ROIC | 34.14% |
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
MSCI has a Profit Margin of 39.46%. This is amongst the best in the industry. MSCI outperforms 82.70% of its industry peers.
MSCI's Profit Margin has been stable in the last couple of years.
The Operating Margin of MSCI (53.86%) is better than 89.87% of its industry peers.
In the last couple of years the Operating Margin of MSCI has grown nicely.
MSCI's Gross Margin of 82.18% is amongst the best of the industry. MSCI outperforms 85.65% of its industry peers.
MSCI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.86% | ||
| PM (TTM) | 39.46% | ||
| GM | 82.18% |
OM growth 3Y0.65%
OM growth 5Y1.98%
PM growth 3Y3.01%
PM growth 5Y1.42%
GM growth 3Y-0.19%
GM growth 5Y0.23%
2. Health
2.1 Basic Checks
MSCI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MSCI has less shares outstanding
Compared to 1 year ago, MSCI has a worse debt to assets ratio.
2.2 Solvency
MSCI has an Altman-Z score of 7.03. 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 7.03, MSCI belongs to the top of the industry, outperforming 89.03% of the companies in the same industry.
The Debt to FCF ratio of MSCI is 3.32, which is a good value as it means it would take MSCI, 3.32 years of fcf income to pay off all of its debts.
MSCI has a better Debt to FCF ratio (3.32) than 75.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.32 | ||
| Altman-Z | 7.03 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MSCI has a Current Ratio of 0.86. 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 of 0.86. This is in the lower half of the industry: MSCI underperforms 62.87% of its industry peers.
A Quick Ratio of 0.86 indicates that MSCI may have some problems paying its short term obligations.
MSCI has a Quick ratio of 0.86. This is in the lower half of the industry: MSCI underperforms 62.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.44% over the past year.
MSCI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.74% yearly.
Looking at the last year, MSCI shows a quite strong growth in Revenue. The Revenue has grown by 10.48% in the last year.
MSCI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.89% yearly.
EPS 1Y (TTM)13.44%
EPS 3Y15.17%
EPS 5Y18.74%
EPS Q2Q%14.56%
Revenue 1Y (TTM)10.48%
Revenue growth 3Y11.81%
Revenue growth 5Y12.89%
Sales Q2Q%9.14%
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 11.73% yearly.
MSCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.71% yearly.
EPS Next Y13.36%
EPS Next 2Y12.68%
EPS Next 3Y12.61%
EPS Next 5Y11.73%
Revenue Next Year8.95%
Revenue Next 2Y8.69%
Revenue Next 3Y8.57%
Revenue Next 5Y7.71%
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 34.90, MSCI can be considered very expensive at the moment.
MSCI's Price/Earnings ratio is a bit more expensive when compared to the industry. MSCI is more expensive than 74.26% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.93. MSCI is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.31, 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 70.46% of the companies in the same industry.
MSCI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.9 | ||
| Fwd PE | 29.31 |
4.2 Price Multiples
MSCI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MSCI is cheaper than 66.24% 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 | 32.2 | ||
| EV/EBITDA | 26.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MSCI has an outstanding profitability rating, which may justify a higher PE ratio.
MSCI's earnings are expected to grow with 12.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.61
PEG (5Y)1.86
EPS Next 2Y12.68%
EPS Next 3Y12.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.32%, MSCI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.82, MSCI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.39, MSCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of MSCI is nicely growing with an annual growth rate of 19.73%!
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)19.73%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
MSCI pays out 45.34% 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.
DP45.34%
EPS Next 2Y12.68%
EPS Next 3Y12.61%
565.72
-1.71 (-0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners93.23%
Inst Owner Change-1.2%
Ins Owners2.94%
Ins Owner Change-0.01%
Market Cap43.77B
Analysts78.33
Price Target630.13 (11.39%)
Short Float %1.42%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend6.49
Dividend Growth(5Y)19.73%
DP45.34%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.54%
Min EPS beat(2)-1.27%
Max EPS beat(2)0.18%
EPS beat(4)3
Avg EPS beat(4)0.75%
Min EPS beat(4)-1.27%
Max EPS beat(4)3.71%
EPS beat(8)7
Avg EPS beat(8)1.9%
EPS beat(12)11
Avg EPS beat(12)2.08%
EPS beat(16)14
Avg EPS beat(16)2.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-1.75%
Max Revenue beat(2)-1.41%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)-0.72%
Revenue beat(8)1
Avg Revenue beat(8)-1.11%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)2
Avg Revenue beat(16)-1.14%
PT rev (1m)0.04%
PT rev (3m)0.25%
EPS NQ rev (1m)1.47%
EPS NQ rev (3m)0.74%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)1.59%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.9 | ||
| Fwd PE | 29.31 | ||
| P/S | 14.65 | ||
| P/FCF | 32.2 | ||
| P/OCF | 29.37 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.71 |
EPS(TTM)16.21
EY2.87%
EPS(NY)19.3
Fwd EY3.41%
FCF(TTM)17.57
FCFY3.11%
OCF(TTM)19.26
OCFY3.4%
SpS38.6
BVpS-11.45
TBVpS-60.5
PEG (NY)2.61
PEG (5Y)1.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.93% | ||
| ROE | N/A | ||
| ROCE | 41.21% | ||
| ROIC | 34.14% | ||
| ROICexc | 37.44% | ||
| ROICexgc | N/A | ||
| OM | 53.86% | ||
| PM (TTM) | 39.46% | ||
| GM | 82.18% | ||
| FCFM | 45.51% |
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 5Y1.42%
GM growth 3Y-0.19%
GM growth 5Y0.23%
F-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.32 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 68.54% | ||
| Cap/Sales | 4.39% | ||
| Interest Coverage | 8.99 | ||
| Cash Conversion | 82.79% | ||
| Profit Quality | 115.31% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 7.03 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)64.16%
Cap/Depr(5y)61.27%
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)13.44%
EPS 3Y15.17%
EPS 5Y18.74%
EPS Q2Q%14.56%
EPS Next Y13.36%
EPS Next 2Y12.68%
EPS Next 3Y12.61%
EPS Next 5Y11.73%
Revenue 1Y (TTM)10.48%
Revenue growth 3Y11.81%
Revenue growth 5Y12.89%
Sales Q2Q%9.14%
Revenue Next Year8.95%
Revenue Next 2Y8.69%
Revenue Next 3Y8.57%
Revenue Next 5Y7.71%
EBIT growth 1Y11.25%
EBIT growth 3Y12.53%
EBIT growth 5Y15.13%
EBIT Next Year21.56%
EBIT Next 3Y13.22%
EBIT Next 5Y11.1%
FCF growth 1Y22.67%
FCF growth 3Y16.55%
FCF growth 5Y16.15%
OCF growth 1Y24.75%
OCF growth 3Y17.06%
OCF growth 5Y16.18%