MSCI (MSCI) AI Stock Analysis

• Market Cap: $43.92B
• Dividend Yield: 1.23%
• Average Volume (3M): 849.18K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.83
• Revenue Growth: 10.48%
• EPS Growth: 0.98%
• Country: US
• Employees: 6,184
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 4.17
• Shares Outstanding: 77,365,234
• 10 Day Avg. Volume: 519,965
• 30 Day Avg. Volume: 849,185
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 16.41
• Enterprise Value/Gross Profit: 19.96
• Enterprise Value/Ebitda: 27.52
• 1Y Price Target: $642.89
• Price Target Upside: 13.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: $633.00 ▲(11.50% Upside)

MSCI's overall stock score reflects strong earnings performance and strategic financial moves, such as the senior notes offering. However, high leverage and valuation concerns weigh on the score. Technical indicators suggest a neutral trend, and while the earnings call was positive, challenges in certain segments remain.

Positive Factors

Market Position and Growth Opportunities

Analysts believe MSCI has the ability to reaccelerate organic growth, with upside opportunities from custom indexes, Climate, and Private Assets.

Positive Market Trends

Positive trends for MSCI: growing use cases for wealth managers, systematic rule-based investing, and growth of private assets.

Revenue Growth in Private Assets

MSCI's private asset segment grew revenue 5.2% in 1Q25 vs 2024's 3.4%.

Negative Factors

Near-term Revenue Deceleration

Near term deceleration in revenue growth is expected.

Revenue Challenges

The price objective was lowered to $560 driven by lower index and analytics revenue given the tough selling environment.

Sales and Subscription Challenges

Forward looking KPIs were worse than expected, with net new subscription sales missing expectations due to lower sales and higher cancellations.

MSCI Business Overview & Revenue Model

Company Description

MSCI Inc., together with its subsidiaries, provides investment decision support tools for the clients to manage their investment processes worldwide. It operates through four segments: Index, Analytics, ESG and Climate, and All Other Private Assets. The Index segment provides indexes for use in various areas of the investment process, including indexed product creation, such as ETFs, mutual funds, annuities, futures, options, structured products, over-the-counter derivatives; performance benchmarking; portfolio construction and rebalancing; and asset allocation, as well as licenses GICS and GICS Direct. The Analytics segment offers risk management, performance attribution and portfolio management content, application, and service that provides an integrated view of risk and return, and an analysis of market, credit, liquidity, and counterparty risk across asset classes; managed services, including consolidation of client portfolio data from various sources, review and reconciliation of input data and results, and customized reporting; and HedgePlatform to measure, evaluate, and monitor the risk of hedge fund investments. The ESG and Climate segment provides products and services that help institutional investors understand how ESG factors impact the long-term risk and return of their portfolio and individual security-level investments; and data, ratings, research, and tools to help investors navigate increasing regulation. The All Other Private Assets segment includes real estate market and transaction data, benchmarks, return-analytics, climate assessments and market insights for funds, investors, and managers; business intelligence to real estate owners, managers, developers, and brokers; and offers investment decision support tools for private capital. It serves asset owners and managers, financial intermediaries, wealth managers, real estate professionals, and corporates. MSCI Inc. was incorporated in 1998 and is headquartered in New York, New York.

How the Company Makes Money

MSCI generates revenue through multiple streams, primarily from subscription fees and asset-based fees. The subscription fees are derived from clients who use its analytics and research tools, while asset-based fees come from clients who utilize MSCI's indexes for investment products, such as exchange-traded funds (ETFs) and mutual funds. Additionally, MSCI earns revenue from its ESG and climate-related data services, which have gained traction as investors increasingly prioritize sustainability. The company has established significant partnerships with asset managers, investment banks, and financial advisors, further enhancing its market position and contributing to its earnings. Furthermore, MSCI's strong brand reputation and its ability to innovate and adapt to market trends play a crucial role in maintaining its revenue streams.

MSCI Financial Statement Overview

Summary

MSCI demonstrates strong revenue growth and profitability margins, with a TTM revenue increase of 4.6% and high gross and net profit margins. However, the balance sheet shows high leverage and negative equity, posing financial risks. Cash flow management is strong, with consistent free cash flow generation and efficient cash conversion.

Income Statement

MSCI demonstrates strong revenue growth with a TTM revenue increase of 4.6% over the previous year, reflecting robust demand. The company maintains high profitability margins with a Gross Profit Margin of 82.2% and a Net Profit Margin of 39.5% in the TTM, indicating efficient cost management and a strong competitive position. However, the EBIT and EBITDA margins show slight compression, which may warrant monitoring.

Balance Sheet

MSCI's balance sheet shows a high Debt-to-Equity ratio due to negative stockholders' equity, which presents a leverage risk. The Return on Equity is not meaningful given the negative equity, and the equity ratio is also negative, highlighting financial risk. Despite these concerns, the company maintains substantial assets and cash reserves that provide some stability.

Cash Flow

MSCI has shown consistent free cash flow generation, with a TTM Free Cash Flow of $1.45 billion, and Operating Cash Flow exceeds net income, suggesting efficient cash conversion. The Free Cash Flow growth rate over the past year is stable, indicating strong cash flow management despite high financing cash outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.99B	2.86B	2.53B	2.25B	2.04B	1.70B
Gross Profit	2.45B	2.34B	2.08B	1.84B	1.68B	1.40B
EBITDA	1.78B	1.75B	1.71B	1.36B	1.15B	953.34M
Net Income	1.18B	1.11B	1.15B	870.57M	725.98M	601.82M
Balance Sheet
Total Assets	5.37B	5.45B	5.52B	5.00B	5.51B	4.20B
Cash, Cash Equivalents and Short-Term Investments	347.32M	405.85M	457.81M	993.20M	1.42B	1.30B
Total Debt	4.63B	4.63B	4.63B	4.64B	4.31B	3.52B
Total Liabilities	6.26B	6.39B	6.26B	6.01B	5.67B	4.64B
Stockholders Equity	-886.21M	-940.00M	-739.76M	-1.01B	-163.47M	-443.23M
Cash Flow
Free Cash Flow	1.45B	1.47B	1.15B	1.02B	883.27M	760.13M
Operating Cash Flow	1.49B	1.50B	1.24B	1.10B	936.07M	811.11M
Investing Cash Flow	-132.26M	-144.25M	-819.38M	-79.33M	-1.04B	-241.79M
Financing Cash Flow	-1.47B	-1.40B	-953.93M	-1.43B	229.50M	-779.04M

MSCI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 567.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSCI, the sentiment is Positive. The current price of 567.72 is above the 20-day moving average (MA) of 561.79, above the 50-day MA of 563.44, and below the 200-day MA of 569.99, indicating a neutral trend. The MACD of 3.37 indicates Negative momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 54.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSCI.

MSCI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCO	79 Outperform	$91.45B	43.32	55.18%	0.72%	11.47%	16.14%
NDAQ	78 Outperform	$54.36B	36.59	13.28%	1.04%	23.55%	49.91%
SPGI	76 Outperform	$167.44B	42.09	11.76%	0.69%	10.72%	23.30%
MSCI	73 Outperform	$43.92B	37.61	-117.99%	1.23%	10.48%	0.98%
FDS	70 Outperform	$14.11B	26.95	26.35%	1.15%	5.07%	4.19%
Sector *	68 Neutral	$17.89B	11.95	10.28%	3.72%	9.74%	1.61%
MORN	66 Neutral	$11.07B	27.92	26.51%	0.67%	8.23%	64.35%

MSCI Corporate Events

MSCI Expands Credit Agreement to $1.60 Billion

On August 20, 2025, MSCI Inc. entered into a Third Amended and Restated Credit Agreement, increasing its revolving credit commitments to $1.60 billion and extending the availability period to August 20, 2030. The agreement modifies certain financial covenants and eliminates specific adjustments, while maintaining similar terms to the previous agreement, supporting the company’s general corporate purposes.

MSCI Completes $1.25 Billion Senior Notes Offering

On August 8, 2025, MSCI Inc. successfully completed a public offering of $1.25 billion in senior unsecured notes with a 5.250% interest rate due in 2035. This strategic financial move, registered with the SEC, is expected to bolster MSCI’s financial position and potentially enhance its market influence, offering significant implications for stakeholders.