NYSE:MSCI

Stock Analysis Report

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Executive Summary

MSCI Inc., together with its subsidiaries, provides investment decision support tools for the clients to manage their investment processes worldwide. More Details


Snowflake Analysis

Imperfect balance sheet with questionable track record.


Similar Companies

Share Price & News

How has MSCI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MSCI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

MSCI

0.01%

US Capital Markets

-1.3%

US Market


1 Year Return

64.2%

MSCI

9.9%

US Capital Markets

18.5%

US Market

Return vs Industry: MSCI exceeded the US Capital Markets industry which returned 9.9% over the past year.

Return vs Market: MSCI exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

MSCIIndustryMarket
7 Day-0.1%0.01%-1.3%
30 Day1.9%5.9%5.3%
90 Day-6.9%2.8%7.5%
1 Year65.7%64.2%12.7%9.9%21.3%18.5%
3 Year212.8%202.5%22.6%13.1%42.4%32.9%
5 Year503.2%468.7%70.9%49.4%84.2%63.5%

Price Volatility Vs. Market

How volatile is MSCI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MSCI undervalued compared to its fair value and its price relative to the market?

57.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MSCI ($358.57) is trading above our estimate of fair value ($170.39)

Significantly Below Fair Value: MSCI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MSCI is poor value based on its PE Ratio (58x) compared to the US Capital Markets industry average (22.9x).

PE vs Market: MSCI is poor value based on its PE Ratio (58x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: MSCI is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: MSCI has negative assets, so we can't compare its PB Ratio to the US Capital Markets industry average.


Next Steps

Future Growth

How is MSCI forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSCI's forecast earnings growth (14.7% per year) is above the savings rate (2.2%).

Earnings vs Market: MSCI's earnings (14.7% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: MSCI's earnings are forecast to grow, but not significantly.

Revenue vs Market: MSCI's revenue (8.6% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: MSCI's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MSCI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has MSCI performed over the past 5 years?

22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSCI has high quality earnings.

Growing Profit Margin: MSCI's current net profit margins (32.1%) are lower than last year (39.3%).


Past Earnings Growth Analysis

Earnings Trend: MSCI's earnings have grown significantly by 22.9% per year over the past 5 years.

Accelerating Growth: MSCI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MSCI had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Capital Markets industry average (11.9%).


Return on Equity

High ROE: MSCI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is MSCI's financial position?


Financial Position Analysis

Short Term Liabilities: MSCI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MSCI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MSCI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MSCI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: MSCI's debt is well covered by operating cash flow (24%).

Interest Coverage: MSCI's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Next Steps

Dividend

What is MSCI current dividend yield, its reliability and sustainability?

0.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MSCI's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: MSCI's dividend (0.87%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MSCI has been paying a dividend for less than 10 years.

Growing Dividend: MSCI's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44%), MSCI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MSCI's dividends in 3 years are forecast to be well covered by earnings (44.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Henry Fernandez (62 yo)

22.75yrs

Tenure

US$9,255,960

Compensation

Mr. Henry A. Fernandez serves as Independent Director at Royalty Pharma plc since July 30, 2020. He has been the Chairman of the Board at MSCI Inc. since October 2007 and has been its Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Henry's total compensation ($USD9.26M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Henry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Henry Fernandez
Chairman & CEO22.75yrsUS$9.26m2.41%
$ 722.4m
C. D. Pettit
President & COO3yrsUS$5.37m0.32%
$ 96.8m
Andrew Wiechmann
Chief Strategy Officer & CFO0.083yrUS$1.95m0.012%
$ 3.7m
Scott Crum
MD & Chief Human Resources Officer6.5yrsUS$2.55m0.030%
$ 9.1m
Linda Huber
Executive Officer0.083yrUS$4.21m0.0065%
$ 1.9m
Jennifer Mak
Principal Accounting Officer2.17yrsno data0.010%
$ 3.1m
Jigar Thakkar
CTO & Head of Engineering2.25yrsUS$6.29mno data
Sallilyn Schwartz
Head of Investor Relations & Treasurer1.08yrsno datano data
Robert Gutowski
General Counsel0.75yrno data0.014%
$ 4.1m
Peter Zangari
Global Head of Research & Product Development9.17yrsUS$3.23mno data
Tae-Jong Um
Managing Director and Head of Korea Operations8.5yrsno datano data
Deborah Yang
MD and Head of Europe7yrsno datano data

2.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: MSCI's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Henry Fernandez
Chairman & CEO22.75yrsUS$9.26m2.41%
$ 722.4m
Robert Ashe
Lead Independent Director2.5yrsUS$322.25k0.018%
$ 5.4m
Catherine Kinney
Independent Director11.08yrsUS$296.43k0.0052%
$ 1.6m
Wayne Edmunds
Independent Director5.58yrsUS$276.79k0.0082%
$ 2.5m
Paula Volent
Independent Director0.67yrno data0.00032%
$ 96.0k
Benjamin DuPont
Independent Director12.67yrsUS$267.55k0.014%
$ 4.2m
Jacques Perold
Independent Director3.58yrsUS$266.79k0.0040%
$ 1.2m
Linda Riefler
Independent Director13.75yrsUS$271.79k0.022%
$ 6.5m
Marcus Smith
Independent Director2.92yrsUS$256.79k0.0028%
$ 848.7k
Sandy Rattray
Independent Director0.67yrno data0.000080%
$ 24.0k

4.6yrs

Average Tenure

61yo

Average Age

Experienced Board: MSCI's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MSCI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MSCI Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MSCI Inc.
  • Ticker: MSCI
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: US$29.990b
  • Shares outstanding: 83.64m
  • Website: https://www.msci.com

Number of Employees


Location

  • MSCI Inc.
  • 7 World Trade Center
  • 49th Floor
  • New York
  • New York
  • 10007
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSCINYSE (New York Stock Exchange)YesNew Common StockUSUSDNov 2007
3HMDB (Deutsche Boerse AG)YesNew Common StockDEEURNov 2007
MSCI *BMV (Bolsa Mexicana de Valores)YesNew Common StockMXMXNNov 2007
M1SC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

MSCI Inc., together with its subsidiaries, provides investment decision support tools for the clients to manage their investment processes worldwide. The company operates through four segments: Index, Anal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:05
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.