MSCI INC (MSCI) Stock Fundamental Analysis
NYSE:MSCI - New York Stock Exchange, Inc. - US55354G1004 - Common Stock - Currency: USD
MSCI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 230 industry peers in the Capital Markets industry. MSCI scores excellent on profitability, 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.
Each year in the past 5 years MSCI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 21.36%, MSCI belongs to the best of the industry, outperforming 99.57% of the companies in the same industry.
The Return On Invested Capital of MSCI (33.46%) is better than 99.57% 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 7.09%.
The 3 year average ROIC (29.39%) for MSCI is below the current ROIC(33.46%), indicating increased profibility in the last year.
| 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
The Profit Margin of MSCI (39.08%) is better than 80.00% of its industry peers.
MSCI's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 53.60%, MSCI belongs to the top of the industry, outperforming 92.61% of the companies in the same industry.
MSCI's Operating Margin has improved in the last couple of years.
MSCI's Gross Margin of 82.11% is amongst the best of the industry. MSCI outperforms 86.09% of its industry peers.
MSCI's Gross Margin has been stable in the last couple of years.
| 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 MSCI has been reduced compared to 1 year ago.
Compared to 5 years ago, MSCI has less shares outstanding
MSCI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.78 indicates that MSCI is not in any danger for bankruptcy at the moment.
MSCI's Altman-Z score of 6.78 is amongst the best of the industry. MSCI outperforms 91.74% 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.
MSCI has a better Debt to FCF ratio (3.30) than 75.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 6.78 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MSCI has a Current 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.
MSCI has a Current ratio of 0.84. This is in the lower half of the industry: MSCI underperforms 63.04% 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.
MSCI has a Quick ratio of 0.84. This is in the lower half of the industry: MSCI underperforms 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
MSCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.72%, which is quite good.
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.
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)12.72%
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 12.09% on average over the next years. This is quite good.
MSCI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.17% yearly.
EPS Next Y13.28%
EPS Next 2Y12.91%
EPS Next 3Y12.6%
EPS Next 5Y12.09%
Revenue Next Year7.64%
Revenue Next 2Y7.96%
Revenue Next 3Y8.04%
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
A Price/Earnings ratio of 34.83 indicates a quite expensive valuation of MSCI.
Compared to the rest of the industry, the Price/Earnings ratio of MSCI indicates a slightly more expensive valuation: MSCI is more expensive than 73.04% of the companies listed in the same industry.
MSCI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.85.
With a Price/Forward Earnings ratio of 28.18, MSCI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSCI indicates a slightly more expensive valuation: MSCI is more expensive than 70.43% of the companies listed in the same industry.
MSCI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.83 | ||
| Fwd PE | 28.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MSCI is valued a bit cheaper than the industry average as 67.39% of the companies are valued more expensively.
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 | 30.72 | ||
| EV/EBITDA | 26.52 |
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.
MSCI's earnings are expected to grow with 12.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.62
PEG (5Y)1.86
EPS Next 2Y12.91%
EPS Next 3Y12.6%
5. Dividend
5.1 Amount
MSCI has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.31, MSCI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.45, MSCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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
MSCI pays out 45.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
MSCI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.68%
EPS Next 2Y12.91%
EPS Next 3Y12.6%
546.07
+0.96 (+0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners93.37%
Inst Owner Change0.78%
Ins Owners2.87%
Ins Owner Change1.31%
Market Cap42.38B
Analysts77.5
Price Target628.55 (15.1%)
Short Float %1.47%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)-1.93%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)-1.74%
Revenue beat(4)0
Avg Revenue beat(4)-1.23%
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)-7.63%
PT rev (3m)-7.53%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-1.71%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.83 | ||
| Fwd PE | 28.18 | ||
| P/S | 14.5 | ||
| P/FCF | 30.72 | ||
| P/OCF | 28.19 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.52 |
EPS(TTM)15.68
EY2.87%
EPS(NY)19.38
Fwd EY3.55%
FCF(TTM)17.78
FCFY3.26%
OCF(TTM)19.37
OCFY3.55%
SpS37.65
BVpS-12.35
TBVpS-61.39
PEG (NY)2.62
PEG (5Y)1.86
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 | 6.78 |
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 Y13.28%
EPS Next 2Y12.91%
EPS Next 3Y12.6%
EPS Next 5Y12.09%
Revenue 1Y (TTM)11.67%
Revenue growth 3Y11.81%
Revenue growth 5Y12.89%
Sales Q2Q%9.69%
Revenue Next Year7.64%
Revenue Next 2Y7.96%
Revenue Next 3Y8.04%
Revenue Next 5Y8.17%
EBIT growth 1Y11.12%
EBIT growth 3Y12.53%
EBIT growth 5Y15.13%
EBIT Next Year20.55%
EBIT Next 3Y13.3%
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%