MSCI (MSCI) AI Stock Analysis

• Market Cap: $41.42B
• Dividend Yield: 1.3%
• Average Volume (3M): 638.48K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 0.76
• Revenue Growth: 9.02%
• EPS Growth: 3.45%
• Country: US
• Employees: 6,184
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 4.47
• Shares Outstanding: 75,139,540
• 10 Day Avg. Volume: 795,150
• 30 Day Avg. Volume: 638,476
• PEG Ratio: -17.09
• Price to Book (P/B): -50.24
• Price to Sales (P/S): 16.54
• P/FCF Ratio: 32.17
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 15.94
• Enterprise Value/Gross Profit: 19.35
• Enterprise Value/Ebitda: 26.76
• 1Y Price Target: $649.00
• Price Target Upside: 17.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 17.19
• Revenue Forecast (FY): $3.13B

• Rating: 62 Neutral
• Price Target: $569.00 ▲(3.22% Upside)

MSCI's overall score reflects strong financial performance and strategic initiatives, particularly in AI and share repurchases. However, high leverage and negative equity on the balance sheet, along with bearish technical indicators, present significant risks. The premium valuation further tempers the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for MSCI's products, supporting long-term business expansion and market leadership.

Innovative Use of AI

AI integration enhances MSCI's product offerings, potentially increasing margins and creating new revenue streams, strengthening competitive advantage.

Share Repurchase Program

The share buyback program signals confidence in financial health, enhancing shareholder value and supporting stock price stability.

Negative Factors

High Leverage

High leverage and negative equity pose risks to financial stability, potentially limiting MSCI's ability to invest in growth opportunities.

Leadership Transition

Leadership changes can disrupt strategic continuity, affecting long-term planning and execution during the transition period.

Challenges in EMEA Market

Persistent challenges in the EMEA market could hinder MSCI's growth prospects and impact revenue from this key region.

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 primarily through its subscription-based model, which consists of fees charged for access to its data, analytics, and indices. Key revenue streams include the sale of index licenses, analytics services, and ESG research and ratings. The company also earns revenue from custom solutions and consulting services tailored to specific client needs. Partnerships with financial institutions, investment managers, and other entities enhance MSCI's product offerings, while the increasing demand for ESG integration and risk management tools contributes to its earnings growth. Ongoing investments in technology and data capabilities further strengthen its competitive position in the market.

MSCI Financial Statement Overview

Summary

MSCI shows strong profitability and cash flow generation, with high margins and efficient cash conversion. However, the balance sheet is a concern due to high leverage and negative equity, posing risks to financial stability.

Income Statement

MSCI demonstrates strong profitability with a consistent gross profit margin above 80% and a net profit margin around 40% in the TTM. Revenue growth is steady, albeit modest, at 2.3% in the TTM. The EBIT and EBITDA margins remain robust, indicating efficient cost management and operational effectiveness. However, the slight decline in EBIT and EBITDA margins compared to previous years suggests some pressure on operational efficiency.

Balance Sheet

The balance sheet reveals significant challenges, primarily due to negative stockholders' equity, resulting in a negative debt-to-equity ratio. This indicates high financial leverage and potential risk in capital structure. The return on equity is negative, reflecting the impact of negative equity. Despite these issues, the equity ratio shows that equity constitutes a negative portion of total assets, highlighting the need for improved financial stability.

Cash Flow

Cash flow metrics are strong, with a healthy free cash flow to net income ratio close to 1, indicating efficient cash generation relative to profits. The operating cash flow to net income ratio is above 1 in the TTM, showing strong cash conversion. Free cash flow growth is positive, supporting the company's ability to reinvest and manage debt. However, the growth rate is moderate, suggesting room for improvement in cash flow expansion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.06B	2.86B	2.53B	2.25B	2.04B	1.70B
Gross Profit	2.52B	2.34B	2.08B	1.84B	1.68B	1.40B
EBITDA	1.82B	1.75B	1.71B	1.36B	1.15B	953.34M
Net Income	1.22B	1.11B	1.15B	870.57M	725.98M	601.82M
Balance Sheet
Total Assets	5.39B	5.45B	5.52B	5.00B	5.51B	4.20B
Cash, Cash Equivalents and Short-Term Investments	400.09M	405.85M	457.81M	993.20M	1.42B	1.30B
Total Debt	5.62B	4.63B	4.63B	4.64B	4.31B	3.52B
Total Liabilities	7.31B	6.39B	6.26B	6.01B	5.67B	4.64B
Stockholders Equity	-1.92B	-940.00M	-739.76M	-1.01B	-163.47M	-443.23M
Cash Flow
Free Cash Flow	1.48B	1.47B	1.15B	1.02B	883.27M	760.13M
Operating Cash Flow	1.52B	1.50B	1.24B	1.10B	936.07M	811.11M
Investing Cash Flow	-130.35M	-144.25M	-819.38M	-79.33M	-1.04B	-241.79M
Financing Cash Flow	-1.49B	-1.40B	-953.93M	-1.43B	229.50M	-779.04M

MSCI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 551.23
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 551.23 is below the 20-day moving average (MA) of 551.69, below the 50-day MA of 557.00, and below the 200-day MA of 556.30, indicating a bearish trend. The MACD of -4.06 indicates Negative momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 77.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSCI.

MSCI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDS	78 Outperform	$10.96B	18.84	29.13%	1.49%	5.39%	11.56%
NDAQ	78 Outperform	$53.06B	33.13	14.07%	1.13%	16.41%	68.03%
MCO	77 Outperform	$87.95B	39.64	57.08%	0.76%	8.77%	13.62%
MORN	76 Outperform	$8.62B	23.85	24.42%	0.84%	7.76%	15.92%
SPGI	73 Outperform	$151.36B	36.34	12.57%	0.77%	9.04%	21.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	62 Neutral	$41.42B	34.94	―	1.30%	9.02%	3.45%

MSCI Corporate Events

MSCI Announces Leadership Changes Amid Executive Retirement

On November 12, 2025, MSCI Inc. announced the retirement of C.D. Baer Pettit, who has served in senior leadership roles for over 25 years, including as President and COO. Mr. Pettit will remain as an advisor until the third quarter of 2026 to ensure a smooth transition, with CEO Henry A. Fernandez assuming the role of President from March 1, 2026. The company also announced leadership changes with Alvise Munari appointed as Head of Client Segments and Jorge Mina as COO, aiming to drive growth in new client segments and enhance product innovation.

MSCI Completes $500 Million Senior Notes Offering

On November 6, 2025, MSCI completed a public offering of $500 million in senior unsecured notes with a 5.150% interest rate due in 2036. This issuance, registered with the SEC, was part of a strategic financial maneuver to strengthen the company’s capital structure, potentially impacting its market positioning and stakeholder interests.

MSCI Announces New $3 Billion Share Buyback

On October 25, 2025, MSCI‘s Board of Directors authorized a new $3.0 billion share repurchase program, replacing the previous one from October 2024. This decision reflects MSCI’s robust financial performance in the third quarter of 2025, where operating revenues rose by 9.5% to $793.4 million and diluted EPS increased by 19% to $4.25. The company also reported a record asset-based fee run rate, driven by a 17% growth, highlighting its strong market position and commitment to returning value to shareholders.