Last Updated: 15 Sep 2024
Executive Summary
MSCI Inc. (MSCI) is a global provider of equity, fixed income, hedge fund stock market indexes, multi-asset portfolio analysis tools, and ESG products. With a market capitalization of $44.17 billion, MSCI has a strong financial position with an EBITDA of $1.56 billion and EPS of $14.95. The company's trailing PE ratio of 37.59 indicates a premium valuation compared to the industry average. Analysts are predominantly bullish on MSCI, with 8 Buy and 1 Strong Buy ratings. The latest stock price of $561.93 is within the 52-week range of $437.27 to $611.91.
Company Overview
MSCI was founded in 1969 and is headquartered in New York City. The company serves a global clientele and publishes widely recognized indices such as the MSCI BRIC, MSCI World, and MSCI EAFE. MSCI's products are used by institutional investors, asset managers, and financial advisors to track and benchmark investment performance.
Fundamental Analysis
MSCI's financial performance has been consistent in recent years. Revenue for the trailing twelve months (TTM) was $2.70 billion, with a gross profit of $1.84 billion. The company's profit margin of 43.9% and operating margin of 54.4% indicate strong profitability. MSCI's return on assets (ROA) and return on equity (ROE) are 17.8% and 0%, respectively, suggesting room for improvement.
Technical Analysis
MSCI's stock price has been trending sideways in recent months. The 50-day moving average of $540.96 and the 200-day moving average of $531.98 provide support levels for the stock. The relative strength index (RSI) of 52 indicates that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, MSCI's stock price is expected to remain range-bound. The company's strong fundamentals and analyst support provide a positive outlook, but the premium valuation and lack of momentum in the stock price may limit significant upside potential.
Long Term Outlook
Over the long term, MSCI is well-positioned to benefit from the growing demand for index-based investment products. The company's global presence, strong brand recognition, and innovative product offerings should drive continued growth. However, competition in the index provider industry remains intense, and MSCI will need to maintain its competitive edge to sustain its long-term success.
Analyst Recommendations
Analysts are predominantly bullish on MSCI, with 8 Buy and 1 Strong Buy ratings. The average analyst target price is $591.3, implying an upside potential of 5.2% from the current price.
