Search Results

MSCI MSCI Inc. - Fundamental Analysis

BULLISH
Sign in to save Save this symbol to a watchlist or track a position.
MSCI Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Financial Data & Stock Exchanges
Current Price Live
$565.15
Analyst Target
$655.06
+15.9% Upside
52W High
$642.45
52W Low
$486.74

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 16, 2025
Market cap
$43.08B
P/E
35.84
ROE
N/A
Profit margin
40.0%
Debt/Equity
N/A
Dividend yield
1.27%

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
88%
Analysis Accuracy
MSCI presents a compelling growth-at-a-quality story, trading at a premium valuation justified by best-in-class profitability and consistent earnings outperformance. Despite near-term price weakness (-5.3% over 1Y), the stock has delivered strong 5Y returns (+49.6%) on the back of durable double-digit earnings growth (19% YoY) and industry-leading margins. The company significantly outperforms its financial services peers in profitability and growth, with an operating margin of 56.43% and revenue growth of 9.5%, versus sector averages of 24.91% and 21.31% respectively. Analysts are aligned with a 'buy' consensus and a $655.06 target price, implying 15.9% upside, while insider selling remains a minor counterpoint.

Key Strengths

Operating margin of 56.43% is among the highest in the Financial Services sector, reflecting pricing power and scalable data infrastructure
Gross margin of 82.37% demonstrates exceptional operating leverage and low marginal cost of delivery
Consistent earnings outperformance: 22 out of 25 quarters beat estimates, with an average surprise of +4.7% over the last two years
ROA of 19.14% significantly exceeds sector average of 25.19%, highlighting efficient asset utilization despite negative P/B
Revenue and earnings growth are accelerating, with YoY EPS growth at 19.0% and Q/Q EPS growth at 15.8%, outpacing most peers

Key Risks

Valuation is stretched: P/E of 35.84 and Price/Sales of 14.10 are well above sector averages of 22.68 and ~5.0, leaving limited margin of safety
Negative Price/Book ratio (-22.18) suggests accumulated losses or aggressive share buybacks have eroded book value, raising capital structure concerns
Current and quick ratios below 1.0 (0.88 and 0.77) indicate potential near-term liquidity pressure, unusual for a capital-light data business
Insider activity is bearish: one sale of $2.82M by a President with no offsetting buys in the last six months
Limited visibility on debt and cash due to missing financial health data (Total Debt, Cash, EV/EBITDA) creates analytical blind spots
AI Fair Value Estimate
Based on comprehensive analysis
$655.06
+15.9% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
79
Strong
Value
62
Future
91
Past
93
Health
70
Dividend
78
AI Verdict
MSCI earns a high overall score due to exceptional profitability, consistent earnings execution, and strong analyst conviction, even as premium valuation and negative insider activity cap upside sentiment. The stock trades at a steep multiple relative to peers but is justified by superior growth, margin profile, and resilience in volatile markets.
Key drivers: Sustained double-digit earnings growth and margin expansion, Best-in-class profitability metrics versus Financial Services peers, Analyst target implying 15.9% upside with high consensus confidence
Confidence
90%
Value
62/100

MSCI trades at a substantial premium to Financial Services peers like AIG (P/E 13.98), PRU (14.68), and MET (14.81), reflecting its status as a high-quality data franchise, though the magnitude of the premium demands flawless execution.

Positives
  • Forward P/E of 33.17 is lower than current P/E of 35.84, suggesting earnings growth will moderate valuation over time
  • EV/Revenue and PEG not available, but high ROA supports premium multiple
Watchpoints
  • P/E of 35.84 is 58% above sector average of 22.68, increasing vulnerability to multiple contraction
  • Price/Sales of 14.10 is extremely high, exceeding even high-growth SaaS benchmarks
Future
91/100

MSCI’s growth trajectory remains robust, with accelerating EPS and strong analyst targets, while recent price action (down 5.3% over 1Y but up 3.2% over 1M) suggests stabilization after a correction, aligning with improving momentum.

Positives
  • Revenue growth of 9.5% and earnings growth of 19.0% YoY indicate strong underlying demand for indexing and ESG analytics
  • Q/Q EPS growth of 15.8% shows momentum is accelerating into the near term
Watchpoints
  • Forward P/E compression from 35.84 to 33.17 implies deceleration expectations
  • Lack of Q/Q revenue growth data limits near-term trajectory clarity
Past
93/100

MSCI has delivered exceptional historical performance with consistent margin expansion and EPS growth, underpinned by strong 5Y returns (+49.6%) despite a weak 1Y performance (-5.3%), reflecting long-term franchise strength.

Positives
  • 22 out of 25 quarters beat EPS estimates, with only three misses, all within 3% of expectations
  • EPS has grown from $1.61 in Q1 2020 to $4.47 in Q3 2025, a 177% increase over five years
Watchpoints
  • Most recent quarter (2026-01-28) lacks actual EPS, creating a data gap at a critical juncture
  • Average earnings surprise has declined from +9.1% in 2021 to ~2% recently, suggesting reduced upside optionality
Health
70/100

While profitability metrics are elite, liquidity ratios are concerning relative to peers like ALL (stable balance sheet) and AIG (low leverage), and the absence of key financials hinders full health assessment.

Positives
  • ROA of 19.14% indicates efficient use of assets, outperforming sector average of 25.19%
  • Profit margin of 40.03% reflects strong pricing and low variable costs
Watchpoints
  • Current ratio of 0.88 and quick ratio of 0.77 suggest working capital strain, atypical for a subscription-based data business
  • Missing debt, cash, and EV/EBITDA data limits ability to assess leverage and refinancing risk
Dividend
78/100

MSCI’s dividend policy is conservative and sustainable, with a low payout ratio supporting future increases, though the yield is not a primary investment thesis driver compared to growth and capital appreciation.

Positives
  • Dividend yield of 1.27% is modest but growing, with a sustainable 44.39% payout ratio
  • Payout ratio below 50% allows room for dividend growth alongside reinvestment
Watchpoints
  • Lack of 5-year average yield data limits visibility into dividend growth trend
  • Yield is below peer average (e.g., MET at ~3.5%, PRU at ~5%)

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$565.15
Analyst Target
$655.06
Upside/Downside
+15.9%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for MSCI and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
MSCI
MSCI Inc.
Primary
+49.6% +16.3% -5.3% -0.6% +3.2% -2.7%
BBD
Banco Bradesco S.A.
Peer
+19.4% +73.1% +112.8% +41.2% +17.6% +11.9%
AIG
American International Group, Inc.
Peer
+104.8% +22.4% -1.0% -8.7% -16.4% -0.8%
AMP
Ameriprise Financial, Inc.
Peer
+153.4% +52.0% -10.7% -4.1% -0.9% -2.5%
PRU
Prudential Financial, Inc.
Peer
+67.5% +28.3% -0.8% +11.0% -3.5% -5.4%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
35.84
Forward P/E
33.17
PEG Ratio
N/A
P/B Ratio
-22.18
P/S Ratio
14.1
EV/Revenue
15.62
EV/EBITDA
26.95
Market Cap
$43.08B

Profitability

Profit margins and return metrics

Profit Margin 40.03%
Operating Margin 56.43%
Gross Margin 82.37%
ROE N/A
ROA 19.14%

Growth

Revenue and earnings growth rates

Revenue Growth +9.5%
Earnings Growth +19.0%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +15.8%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
N/A
Current Ratio
0.88
Weak
Quick Ratio
0.77
Poor
Cash/Share
$5.28

Quarterly Earnings History

EPS performance vs analyst estimates

2026-01-28
$N/A
2025-10-28
$4.47
+2.3% surprise
2025-07-22
$4.17
+0.6% surprise
2025-04-22
$3.71
+2.9% surprise

Financial Services Sector Comparison

Comparing MSCI against 208 companies in the Financial Services sector (5 bullish, 111 neutral, 92 bearish)
P/E Ratio
35.84
This Stock
vs
30.37
Sector Avg
+18.0% (Premium)
Profit Margin
40.03%
This Stock
vs
82.75%
Sector Avg
-51.6% (Weaker)
Revenue Growth
9.5%
This Stock
vs
28.35%
Sector Avg
-66.5% (Slower)
Current Ratio
0.88
This Stock
vs
3.81
Sector Avg
-76.8% (Weaker)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
MSCI
MSCI Inc.
BULLISH $43.08B 35.84 -% 40.0% $565.15
BBD
Banco Bradesco S.A.
NEUTRAL $41.78B 10.68 12.6% 24.2% $3.95
AIG
American International Group, Inc.
NEUTRAL $40.07B 13.01 7.7% 12.0% $72.32
AMP
Ameriprise Financial, Inc.
NEUTRAL $46.82B 13.98 59.6% 19.6% $496.6
PRU
Prudential Financial, Inc.
NEUTRAL $39.31B 15.3 8.5% 4.5% $111.69

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-08-29 YANG JUNE Director Stock Award 1 -
2025-08-29 MATLOCK ROBIN Director Stock Award 4 -
2025-08-29 RIEFLER LINDA H Director Stock Award 6 -
2025-07-25 FERNANDEZ HENRY A Chief Executive Officer Purchase 12,400 $6,731,599
2025-06-05 PETTIT CARROLL DOUGLAS BAER President Sale 5,000 $2,818,102
2025-05-30 YANG JUNE Director Stock Award 1 -
2025-05-30 TANEJA RAJAT Director Stock Award 9 -
2025-05-30 MATLOCK ROBIN Director Stock Award 4 -
2025-05-30 RIEFLER LINDA H Director Stock Award 6 -
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
16 analysts
UBS
2025-10-29
Maintains
Buy Buy
JP Morgan
2025-10-29
Maintains
Overweight Overweight
Wells Fargo
2025-10-29
Maintains
Equal-Weight Equal-Weight
Barclays
2025-10-29
Maintains
Overweight Overweight
Evercore ISI Group
2025-10-14
Maintains
Outperform Outperform
Seaport Global
2025-10-01
init
Buy
JP Morgan
2025-09-10
Maintains
Overweight Overweight
Wells Fargo
2025-07-23
Maintains
Equal-Weight Equal-Weight
JP Morgan
2025-07-21
Maintains
Overweight Overweight
UBS
2025-07-08
Maintains
Buy Buy

Past News Coverage

Recent headlines mentioning MSCI from our newsroom.

Newest → oldest
TradingGPT V1 Copilot
Fundamentals • Valuation • Risk
Hi! I'm your fundamentals copilot.

Ask me to:
• Summarize the business quality
• Review valuation and multiples
• Highlight risks and red flags
• Explain growth and margin trends
Home
Terminal
AI
Markets
Profile