MSCI Inc (MSCI, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $577.75, MSCI Inc has witnessed a daily gain of 2.38%, marked against a three-month change of 10.11%. A thorough analysis, underlined by the GF Score, suggests that MSCI Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability, growth, and momentum rank, and a slightly lower financial strength rank, GuruFocus assigned MSCI Inc the GF Score of 96 out of 100, which signals the highest outperformance potential.
Understanding MSCI Inc Business
MSCI Inc, with a market cap of $45.69 billion and sales of $2.53 billion, has described its mission as enabling investors to build better portfolios for a better world. MSCI Inc's largest and most profitable segment is its index segment, where it provides benchmarking to asset managers and asset owners. In addition, it boasts over $1.4 trillion in ETF assets linked to MSCI indexes. The MSCI analytics segment provides portfolio management and risk management analytics software to asset managers and asset owners. MSCI Inc's all other segment was broken out into ESG and climate and private assets segments in 2021. In ESG and climate, MSCI provides ESG data to the investment industry. In private assets, MSCI provides real estate reporting, market data, benchmarking, and analytics to investors and real estate managers.
Profitability Rank Breakdown
The Profitability Rank shows MSCI Inc's impressive standing among its peers in generating profit. MSCI Inc's Operating Margin has increased to 54.75% in 2023, up from 48.51% in 2019. This trend underscores the company's growing proficiency in transforming revenue into profit. Furthermore, MSCI Inc's Gross Margin has also seen a consistent rise over the past five years. The Piotroski F-Score confirms MSCI Inc's solid financial situation, and its strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance.
Growth Rank Breakdown
Ranked highly in Growth, MSCI Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 16.4%, which outperforms better than 67.46% of companies in the Capital Markets industry. Moreover, MSCI Inc has seen a robust increase in its EBITDA over the past few years, with a three-year growth rate of 23.9 and a five-year rate of 18.2. This trend accentuates the company's continued capability to drive growth.
Next Steps
Considering MSCI Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen. MSCI Inc's robust financial health, consistent profitability, and strategic growth initiatives make it a compelling choice for value investors seeking market outperformance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
