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 232 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
In the past year MSCI was profitable.
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
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.
Looking at the Return On Invested Capital, with a value of 33.46%, MSCI belongs to the top of the industry, outperforming 99.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MSCI is significantly above the industry average of 7.88%.
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
Looking at the Profit Margin, with a value of 39.08%, MSCI belongs to the top of the industry, outperforming 81.47% of the companies in the same industry.
MSCI's Profit Margin has been stable in the last couple of years.
The Operating Margin of MSCI (53.60%) is better than 90.09% of its industry peers.
MSCI's Operating Margin has improved in the last couple of years.
MSCI has a better Gross Margin (82.11%) than 85.34% 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.
MSCI has less shares outstanding than it did 5 years ago.
MSCI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.84 indicates that MSCI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.84, MSCI belongs to the top of the industry, outperforming 91.38% of the companies in the same industry.
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.
MSCI has a Debt to FCF ratio of 3.30. This is in the better half of the industry: MSCI outperforms 74.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 6.84 |
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.
The Current ratio of MSCI (0.84) is worse than 64.22% 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.
With a Quick ratio value of 0.84, MSCI is not doing good in the industry: 63.79% of the companies in the same industry are doing better.
| 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.
Looking at the last year, MSCI shows a quite strong growth in Revenue. The Revenue has grown by 11.67% in the last year.
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
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 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
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 35.41, MSCI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MSCI is valued a bit more expensive than the industry average as 74.14% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.60, MSCI is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.02, the valuation of MSCI can be described as expensive.
Based on the Price/Forward Earnings ratio, MSCI is valued a bit more expensive than 69.40% of the companies in the same industry.
MSCI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.41 | ||
| Fwd PE | 29.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSCI indicates a somewhat cheap valuation: MSCI is cheaper than 64.66% of the companies listed in the same industry.
MSCI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.14 | ||
| EV/EBITDA | 26.86 |
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 12.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.8
PEG (5Y)1.89
EPS Next 2Y12.19%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
MSCI has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.22, 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 | 1.28% |
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%
555.19
+0.77 (+0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners93.37%
Inst Owner Change0.45%
Ins Owners2.87%
Ins Owner Change1.14%
Market Cap42.96B
Analysts76.8
Price Target629.89 (13.45%)
Short Float %2.02%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)0.21%
PT rev (3m)-7.44%
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%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.41 | ||
| Fwd PE | 29.02 | ||
| P/S | 14.7 | ||
| P/FCF | 31.14 | ||
| P/OCF | 28.58 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.86 |
EPS(TTM)15.68
EY2.82%
EPS(NY)19.13
Fwd EY3.45%
FCF(TTM)17.83
FCFY3.21%
OCF(TTM)19.43
OCFY3.5%
SpS37.77
BVpS-12.39
TBVpS-61.57
PEG (NY)2.8
PEG (5Y)1.89
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 | 6.84 |
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%