Briefing From The Editor -- MSCI Stock

MSCI logged a 2.0% change during today's afternoon session, and is now trading at a price of $516.46 per share. The S&P 500 index moved 0.6% and the Nasdaq posted a 0.8% change.

MSCI shares moved -7.1% over the last 52 weeks, with a high of $564.27 and a low of $376.41. During this time, the stock outperformed the S&P 500 index by 4.5%. As of January 2022, the company's 50-day average price is $492.0. MSCI Inc., together with its subsidiaries, provides investment decision support tools for the clients to manage their investment processes worldwide. The large-cap Financial Services company has 4,767 full time employees and is based in New York, NY. MSCI has returned a 0.9% dividend yield over the last 12 months.

Good EPS Growth with Reasonable Leverage Levels:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $1,558 $1,695 $2,044
Revenue Growth n/a 8.83% 20.54%
Operating Margins 48.5% 52.2% 53.3%
Operating Margins Growth n/a 7.63% 2.11%
Net Margins 36.18% 35.5% 35.53%
Net Margins Growth n/a -1.88% 0.08%
Earnings Per Share $6.59 $7.12 $8.7
EPS Growth n/a 8.04% 22.19%
Free Cash Flow (MM) $656 $760 $883
FCF Growth n/a 15.92% 16.2%
Capital Expenditures (MM) -$54 -$51 -$53
Net Debt / EBITDA 2.08 2.33 2.47

MSCI Is Reasonably Valued:

Compared to the Financial Services sector's average of 13.34, MSCI has a trailing twelve month P/E ratio of 49.8 and, according to its EPS guidance of 12.67, an expected P/E ratio of 40.8. MSCI's PEG ratio is 1.97 based on its 25.33% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by MSCI's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 3.82, which suggests that the company's shares are actually overvalued.

MSCI's strong cash flow trend and reasonable levels of debt attenuate the company's lofty valuation in terms of earnings and assets.

MSCI Benefits From Positive Market Indicators:

12 analysts are following MSCI and have set target prices ranging from $450 to $600 per share. On average, they have given the company a rating of buy. At the current price of $516.46, MSCI is trading -2.2% away from its average analyst target price of $528.08 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 0.8% of the company's shares are tied to short positions. Institutions own 92.5% of MSCI's shares, while the insider ownership rate stands at 3.08%. The biggest shareholder is the Vanguard Group, Inc. with a 11% stake in the company worth approximately $4,450,806,504.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.