MSCI INC (MSCI)
US55354G1004 - Common Stock
Taking everything into account, MSCI scores 6 out of 10 in our fundamental rating. MSCI was compared to 212 industry peers in the Capital Markets industry. MSCI scores excellent on profitability, but 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.
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 better Return On Assets (21.28%) than 98.56% of its industry peers.
With an excellent Return On Invested Capital value of 28.69%, MSCI belongs to the best of the industry, outperforming 97.61% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MSCI is significantly above the industry average of 10.87%.
The last Return On Invested Capital (28.69%) for MSCI is above the 3 year average (25.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.28% | ||
| ROE | N/A | ||
| ROIC | 28.69% |
ROA(3y)17.14%
ROA(5y)15.83%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)25.66%
ROIC(5y)23.88%
1.3 Margins
MSCI has a better Profit Margin (44.55%) than 82.30% of its industry peers.
MSCI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 53.86%, MSCI belongs to the best of the industry, outperforming 89.00% of the companies in the same industry.
MSCI's Operating Margin has improved in the last couple of years.
MSCI has a better Gross Margin (82.17%) than 82.78% 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) | 44.55% | ||
| GM | 82.17% |
OM growth 3Y1.61%
OM growth 5Y2.71%
PM growth 3Y8.56%
PM growth 5Y5.1%
GM growth 3Y-0.18%
GM growth 5Y0.59%
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.
MSCI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.05 indicates that MSCI is not in any danger for bankruptcy at the moment.
MSCI has a better Altman-Z score (6.05) than 88.52% of its industry peers.
The Debt to FCF ratio of MSCI is 3.82, which is a good value as it means it would take MSCI, 3.82 years of fcf income to pay off all of its debts.
MSCI has a better Debt to FCF ratio (3.82) than 69.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 6.05 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.00 indicates that MSCI may have some problems paying its short term obligations.
MSCI has a Current ratio of 1.00. This is comparable to the rest of the industry: MSCI outperforms 43.54% of its industry peers.
MSCI has a Quick Ratio of 1.00. 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's Quick ratio of 1.00 is in line compared to the rest of the industry. MSCI outperforms 43.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
MSCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.81%, which is quite good.
MSCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.75% yearly.
MSCI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.73%.
MSCI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.02% yearly.
EPS 1Y (TTM)19.81%
EPS 3Y20%
EPS 5Y20.75%
EPS growth Q2Q12.1%
Revenue 1Y (TTM)14.73%
Revenue growth 3Y14.26%
Revenue growth 5Y12.02%
Revenue growth Q2Q14.82%
3.2 Future
Based on estimates for the next years, MSCI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.92% on average per year.
The Revenue is expected to grow by 8.91% on average over the next years. This is quite good.
EPS Next Y12.39%
EPS Next 2Y13.31%
EPS Next 3Y13.5%
EPS Next 5Y11.92%
Revenue Next Year13.56%
Revenue Next 2Y11.6%
Revenue Next 3Y11.11%
Revenue Next 5Y8.91%
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.
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
Based on the Price/Earnings ratio of 33.58, the valuation of MSCI can be described as expensive.
Based on the Price/Earnings ratio, MSCI is valued expensively inside the industry as 80.38% of the companies are valued cheaper.
MSCI is valuated rather expensively when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 26.89, the valuation of MSCI can be described as expensive.
Based on the Price/Forward Earnings ratio, MSCI is valued a bit more expensive than 73.21% of the companies in the same industry.
MSCI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 26.89 |
4.2 Price Multiples
MSCI's Enterprise Value to EBITDA ratio is in line with the industry average.
MSCI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.39 | ||
| EV/EBITDA | 26.32 |
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 13.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.71
PEG (5Y)1.62
EPS Next 2Y13.31%
EPS Next 3Y13.5%
5. Dividend
5.1 Amount
MSCI has a Yearly Dividend Yield of 1.37%.
The stock price of MSCI dropped by -21.25% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MSCI's Dividend Yield is slightly below the industry average, which is at 7.28.
With a Dividend Yield of 1.37, MSCI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of MSCI is nicely growing with an annual growth rate of 23.10%!
MSCI has paid a dividend for at least 10 years, which is a reliable track record.
As MSCI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)23.1%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
39.47% of the earnings are spent on dividend by MSCI. This is a low number and sustainable payout ratio.
MSCI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.47%
EPS Next 2Y13.31%
EPS Next 3Y13.5%
MSCI INC
NYSE:MSCI (5/3/2024, 7:07:17 PM)
After market: 467.04 0 (0%)467.04
-0.66 (-0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 26.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.71
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.28% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 53.86% | ||
| PM (TTM) | 44.55% | ||
| GM | 82.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)19.81%
EPS 3Y20%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.73%
Revenue growth 3Y14.26%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y