MSCI INC (MSCI) Stock Fundamental Analysis
NYSE:MSCI - New York Stock Exchange, Inc. - US55354G1004 - Common Stock - Currency: USD
Overall MSCI gets a fundamental rating of 5 out of 10. We evaluated MSCI against 230 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. While showing a medium growth rate, MSCI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MSCI was profitable.
MSCI had a positive operating cash flow in the past year.
MSCI had positive earnings in each of the past 5 years.
MSCI 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%, MSCI belongs to the top of the industry, outperforming 99.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 33.46%, MSCI belongs to the top of the industry, outperforming 99.57% of the companies in the same industry.
MSCI had an Average Return On Invested Capital over the past 3 years of 29.39%. This is significantly above the industry average of 7.27%.
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 80.87% 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.
The Operating Margin of MSCI (53.60%) is better than 92.61% of its industry peers.
In the last couple of years the Operating Margin of MSCI has grown nicely.
MSCI has a better Gross Margin (82.11%) than 85.65% 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 | 53.6% | ||
| 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
The debt/assets ratio for MSCI is higher compared to a year ago.
2.2 Solvency
MSCI has an Altman-Z score of 6.91. This indicates that MSCI is financially healthy and has little risk of bankruptcy at the moment.
MSCI has a Altman-Z score of 6.91. This is amongst the best in the industry. MSCI outperforms 90.87% 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.
With a decent Debt to FCF ratio value of 3.30, MSCI is doing good in the industry, outperforming 75.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 6.91 |
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.
Looking at the Current ratio, with a value of 0.84, MSCI is doing worse than 63.91% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that MSCI may have some problems paying its short term obligations.
MSCI's Quick ratio of 0.84 is on the low side compared to the rest of the industry. MSCI is outperformed by 63.91% 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.
MSCI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.74% yearly.
The Revenue has grown by 11.67% in the past year. This is quite good.
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)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.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MSCI is valuated quite expensively with a Price/Earnings ratio of 35.63.
MSCI's Price/Earnings ratio is a bit more expensive when compared to the industry. MSCI is more expensive than 72.61% of the companies in the same industry.
MSCI is valuated rather expensively when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.20, 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 69.57% of the companies are valued more cheaply.
MSCI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.63 | ||
| Fwd PE | 29.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MSCI is valued a bit cheaper than the industry average as 66.09% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as MSCI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.33 | ||
| EV/EBITDA | 27.28 |
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)2.82
PEG (5Y)1.9
EPS Next 2Y12.19%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, MSCI has a reasonable but not impressive dividend return.
MSCI's Dividend Yield is slightly below the industry average, which is at 8.12.
With a Dividend Yield of 1.25, MSCI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of MSCI is nicely growing with an annual growth rate of 19.74%!
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)19.74%
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.
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%
558.67
-5.21 (-0.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners93.37%
Inst Owner Change0.37%
Ins Owners2.87%
Ins Owner Change1.3%
Market Cap43.22B
Analysts76.8
Price Target629.89 (12.75%)
Short Float %1.19%
Short Ratio1.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)-7.44%
PT rev (3m)-7.59%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)-0.56%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.63 | ||
| Fwd PE | 29.2 | ||
| P/S | 14.79 | ||
| P/FCF | 31.33 | ||
| P/OCF | 28.75 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.28 |
EPS(TTM)15.68
EY2.81%
EPS(NY)19.13
Fwd EY3.42%
FCF(TTM)17.83
FCFY3.19%
OCF(TTM)19.43
OCFY3.48%
SpS37.77
BVpS-12.39
TBVpS-61.57
PEG (NY)2.82
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 | 6.91 |
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 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%