MSCI Inc. Fundamental Analysis (NYSE: MSCI)
MSCI Inc. Fundamental Analysis (NYSE: MSCI)
MSCI Inc. (NYSE: MSCI) shows moderate financial fundamentals with a PE ratio of 32.97, profit margin of 40.31%, and ROE of -49.71%. The company generates $3.5B in annual revenue with moderate year-over-year growth of 9.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MSCI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMSCI demonstrates superior asset utilization.
Valuation Score
ModerateMSCI shows balanced valuation metrics.
Growth Score
ExcellentMSCI delivers strong and consistent growth momentum.
Financial Health Score
ModerateMSCI shows balanced financial health with some risks.
Profitability Score
ModerateMSCI maintains healthy but balanced margins.
Key Financial Metrics
Is MSCI Expensive or Cheap?
P/E Ratio
MSCI trades at 32.97 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MSCI's PEG of 1.73 indicates fair valuation.
Price to Book
The market values MSCI Inc. at -14.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.12 times EBITDA. This signals the market has high growth expectations.
How Well Does MSCI Make Money?
Net Profit Margin
For every $100 in sales, MSCI Inc. keeps $40.31 as profit after all expenses.
Operating Margin
Core operations generate 55.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-49.71 in profit for every $100 of shareholder equity.
ROA
MSCI Inc. generates $24.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MSCI Inc. generates strong operating cash flow of $1.63B, reflecting robust business health.
Free Cash Flow
MSCI Inc. generates strong free cash flow of $1.55B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $21.33 in free cash annually.
FCF Yield
MSCI converts 3.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
-14.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.50
vs 25 benchmark
ROA
Return on assets percentage
0.25
vs 25 benchmark
ROCE
Return on capital employed
0.48
vs 25 benchmark
How MSCI Stacks Against Its Sector Peers
| Metric | MSCI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.97 | 20.40 | Worse (Expensive) |
| ROE | -49.71% | 638.00% | Weak |
| Net Margin | 40.31% | -568.00% (disorted) | Strong |
| Debt/Equity | -2.28 | 0.84 | Strong (Low Leverage) |
| Current Ratio | 0.82 | 818.60 | Weak Liquidity |
| ROA | 24.73% | 60.00% | Weak |
MSCI outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MSCI Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
100.59%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
116.75%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
112.48%
Industry Style: Value, Dividend, Cyclical
High Growth