NYSE:MSCI

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 10.9% per year

Earnings grew by 11% over the past year

Risk Analysis

No risks detected for MSCI from our risk checks.


Snowflake Analysis

Proven track record with limited growth.


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

6.1%

MSCI

0.2%

US Capital Markets

0.06%

US Market


1 Year Return

85.7%

MSCI

17.8%

US Capital Markets

19.4%

US Market

Return vs Industry: MSCI exceeded the US Capital Markets industry which returned 17.8% over the past year.

Return vs Market: MSCI exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

MSCIIndustryMarket
7 Day6.1%0.2%0.06%
30 Day17.2%0.2%1.1%
90 Day28.0%6.8%8.9%
1 Year87.9%85.7%20.2%17.8%21.9%19.4%
3 Year256.2%244.5%38.8%30.9%48.9%39.3%
5 Year506.2%471.5%81.4%64.5%71.9%53.1%

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?

49.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MSCI ($327.09) is trading above our estimate of fair value ($185.13)

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 (49.1x) compared to the Capital Markets industry average (36x).

PE vs Market: MSCI is poor value based on its PE Ratio (49.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: MSCI is poor value based on its PEG Ratio (4.5x)


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 9 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSCI's forecast earnings growth (10.9% per year) is above the savings rate (1.7%).

Earnings vs Market: MSCI's earnings (10.9% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: MSCI's revenue (8.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MSCI's revenue (8.9% 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?

24.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSCI has high quality earnings.

Growing Profit Margin: MSCI's current net profit margins (36.2%) are higher than last year (35.4%).


Past Earnings Growth Analysis

Earnings Trend: MSCI's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: MSCI's earnings growth over the past year (11%) is below its 5-year average (24.6% per year).

Earnings vs Industry: MSCI earnings growth over the past year (11%) exceeded the Capital Markets industry 8.4%.


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MSCI's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MSCI has a low level of unsold assets or inventory.

Debt Coverage by Assets: MSCI has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Financial Institutions Analysis

Asset Level: MSCI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MSCI has a sufficient allowance for bad loans.

Low Risk Liabilities: MSCI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MSCI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MSCI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MSCI has an appropriate level of bad loans.


Next Steps

Dividend

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

0.83%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: MSCI's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MSCI's dividend (0.83%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.8%), 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 (37.8% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Henry Fernandez (61yo)

22.1yrs

Tenure

US$2,978,454

Compensation

Mr. Henry A. Fernandez has been the Chairman of the Board at MSCI Inc. since October 2007 and has been its Chief Executive Officer since 1998. Mr. Fernandez has been the President and Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Henry's total compensation ($USD2.98M) is below average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Henry Fernandez
Chairman & CEO22.1yrsUS$2.98m2.38% $649.9m
C. D. Pettit
President & COO2.3yrsUS$2.86m0.34% $93.6m
Jigar Thakkar
CTO & Head of Engineering1.6yrsUS$6.29mno data
Laurent Seyer
Managing Director0.08yrsUS$2.16m0.11% $29.0m
Linda Huber
Chief Financial Officer0.8yrsno datano data
Jennifer Mak
Principal Accounting Officer1.5yrsno data0.010% $2.8m
Sallilyn Schwartz
Head of Investor Relations & Treasurer0.4yrsno datano data
Robert Gutowski
General Counsel0yrsno data0.0098% $2.7m
Scott Crum
MD & Chief Human Resources Officer5.8yrsUS$2.07m0.034% $9.3m
Peter Zangari
Global Head of Research & Product Development8.5yrsUS$3.23mno data

1.6yrs

Average Tenure

55yo

Average Age

Experienced Management: MSCI's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Henry Fernandez
Chairman & CEO22.1yrsUS$2.98m2.38% $649.9m
Robert Ashe
Lead Director1.8yrsUS$322.58k0.016% $4.4m
George Siguler
Independent Director10.2yrsUS$247.04k0.034% $9.3m
Catherine Kinney
Independent Director10.4yrsUS$282.18k0.0051% $1.4m
Wayne Edmunds
Independent Director4.9yrsUS$277.04k0.0081% $2.2m
Benjamin DuPont
Independent Director12yrsUS$252.99k0.014% $3.8m
Alice Handy
Independent Director10.2yrsUS$296.05k0.0086% $2.4m
Jacques Perold
Independent Director2.9yrsUS$267.04k0.0032% $863.4k
Linda Riefler
Independent Director13.1yrsUS$272.04k0.020% $5.6m
Marcus Smith
Independent Director2.3yrsUS$259.23k0.0019% $532.8k

10.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: MSCI's board of directors are seasoned and experienced ( 10.2 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$27.323b
  • Shares outstanding: 84.71m
  • 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, Analytics, ESG, and Real Estate. The Index segment primarily provides equity indexes for use in various areas of the investment process, including index-linked product creation and performance benchmarking, as well as portfolio construction and rebalancing, and asset allocation. The Analytics segment offers risk management, performance attribution and portfolio management content, applications, and services that provide clients with an integrated view of risk and return, and an analysis of market, credit, liquidity, and counterparty risk across various asset classes, spanning short, medium, and long-term time horizons; and various managed services for clients to address the needs of various specialized areas of the investment community by providing a reporting service and performance reporting tools to institutional consultants and investors in hedge funds. The ESG segment provides products and services that help institutional investors understand how environmental, social, and governance (ESG) factors impact the long-term risk of their investments; and data and ratings products for use in the construction of equity and fixed income indexes to help institutional investors benchmark ESG investment performance and issue index-based investment products, as well as manage, measure, and report on ESG mandates. The Real Estate segment offers real estate performance analysis for funds, investors, managers, and lenders. This segment provides products and services that include research, reporting, and benchmarking; and business intelligence to real estate owners, managers, developers, and brokers. MSCI Inc. was founded in 1998 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:30
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.