MSCI Inc (MSCI, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position. With a current share price of $506.98, MSCI Inc has experienced a daily decrease of 1.03%, set against a three-month change of -8.35%. A detailed analysis, supported by the GF Score, indicates that MSCI Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. MSCI Inc boasts a GF Score of 96, indicating a top-tier potential for market outperformance.
- Financial strength rank: 5/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 9/10
- Momentum rank: 7/10
Understanding MSCI Inc's Business
MSCI Inc, with a market cap of $40.17 billion and annual sales of $2.62 billion, operates primarily through its index segment, which benchmarks for asset managers and owners, contributing to over $1.4 trillion in ETF assets linked to MSCI indexes. The company also offers portfolio and risk management analytics through its MSCI analytics segment. Additionally, MSCI's ESG and climate segment provides essential ESG data to the investment industry, while its private assets segment delivers real estate reporting and analytics.
Profitability Rank Breakdown
MSCI Inc's Operating Margin has impressively increased from 48.51% in 2019 to 54.75% in 2023, demonstrating the company's enhanced ability to convert revenue into profit. This trend is further supported by a consistent rise in Gross Margin over the past five years, currently standing at 82.34%. The company's financial health is solidified by a high Piotroski F-Score and a Predictability Rank of 5.0 stars, indicating reliable operational performance.
Growth Rank Breakdown
MSCI Inc is distinguished by its robust growth metrics. The company's 3-Year Revenue Growth Rate of 16.4% surpasses 69.8% of its peers in the Capital Markets industry. Additionally, its EBITDA has grown significantly, with a three-year growth rate of 23.9% and a five-year rate of 18.2%, highlighting its ongoing growth capabilities.
Conclusion
Considering MSCI Inc's strong financial strength, exceptional profitability, and impressive growth metrics, the GF Score underscores the company's unmatched position for potential market outperformance. For investors looking for similar opportunities, explore more companies with strong GF Scores through this GF Score Screen.
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.
