MSCI (MSCI) AI Stock Analysis

• Market Cap: $42.64B
• Dividend Yield: 1.18%
• Average Volume (3M): 642.87K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.80
• 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: 77,365,234
• 10 Day Avg. Volume: 693,902
• 30 Day Avg. Volume: 642,872
• 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: 1.14
• Enterprise Value/Revenue: 15.94
• Enterprise Value/Gross Profit: 19.35
• Enterprise Value/Ebitda: 26.79
• 1Y Price Target: $651.22
• Price Target Upside: 11.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 66 Neutral
• Price Target: $641.00 ▲(9.92% Upside)

MSCI's overall stock score reflects strong earnings performance and strategic initiatives, particularly in AI and share repurchases, which are significant positives. However, high financial leverage and valuation concerns weigh on the score. Technical indicators suggest caution, with mixed signals pointing to potential volatility.

Positive Factors

Revenue Growth

Consistent revenue and earnings growth indicate strong market demand and effective business strategies, supporting long-term financial health.

Innovative Use of AI

AI integration enhances product offerings and operational efficiency, potentially increasing margins and creating new revenue streams.

Index Franchise Growth

Strong growth in the Index segment reflects MSCI's competitive advantage and solidifies its market position, driving future revenue.

Negative Factors

High Financial Leverage

High leverage and negative equity pose risks to financial stability, potentially limiting MSCI's ability to invest and grow sustainably.

Pressure in Sustainability Segment

Persistent challenges in the Sustainability segment could hinder growth in an increasingly ESG-focused investment environment.

Challenges in EMEA Market

Weak performance in the EMEA market may affect overall growth and limit MSCI's global expansion efforts.

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 exhibits strong profitability and cash flow generation, which are key strengths. However, the balance sheet presents significant risks due to high leverage and negative equity, which could impact long-term financial stability. The company should focus on improving its capital structure to mitigate these risks while maintaining its operational efficiency and cash flow generation capabilities.

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: Positive
• Last Price: 583.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 583.14 is above the 20-day moving average (MA) of 553.61, above the 50-day MA of 561.61, and above the 200-day MA of 561.88, indicating a bullish trend. The MACD of 1.77 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 81.33 is Negative, 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
SPGI	―	$150.08B	36.36	11.76%	0.77%	10.72%	23.30%
NDAQ	―	$48.91B	30.46	14.07%	1.17%	16.41%	68.03%
MCO	―	$85.45B	37.93	57.08%	0.78%	8.77%	13.62%
FDS	―	$10.08B	17.16	29.13%	1.59%	5.39%	11.56%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	―	$42.64B	37.64	―	1.18%	9.02%	3.45%
MORN	―	$9.04B	23.74	24.42%	0.85%	7.97%	15.92%

MSCI Corporate Events

MSCI Inc. Warns of Potential Risks Impacting Financial Performance in 2024 Annual Report

MSCI Inc. faces potential risks that could significantly impact its business operations and financial performance, as outlined in their Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Although there have been no material changes to these risk factors, their occurrence could adversely affect the company’s operating results and cash flows. Stakeholders are advised to review the detailed risk factors in the report to understand the possible implications. Continuous monitoring of these risks is crucial for anticipating and mitigating potential adverse effects on MSCI’s business.

MSCI Inc. Reports Robust Q3 2025 Financial Growth

MSCI Inc., a prominent provider of decision support tools and services for the global investment community, reported its financial results for the third quarter of 2025, showcasing significant growth in various financial metrics. The company, known for its expertise in research, data, and technology, plays a crucial role in helping clients make informed investment decisions across the globe.

MSCI Inc’s Earnings Call Highlights Robust Growth and Strategic Initiatives

MSCI Inc’s recent earnings call painted a picture of robust financial health and strategic foresight, despite facing some regional and segment-specific challenges. The company reported strong financial performance, underscored by strategic initiatives such as significant share repurchases and expansion in private assets, all supported by innovative use of AI. However, challenges in the EMEA market and continued pressure in the Sustainability and Climate segment were notable concerns.

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.

The most recent analyst rating on (MSCI) stock is a Buy with a $660.00 price target. To see the full list of analyst forecasts on MSCI stock, see the MSCI Stock Forecast page.

MSCI Updates Interest Expense Outlook at Barclays Conference

On September 8, 2025, MSCI Inc.’s CFO, Andrew Wiechmann, will participate in a fireside chat at the Barclays Global Financial Services Conference, where the company will update its full-year 2025 interest expense outlook due to recent financing activities. The updated guidance reflects an increase in expected interest expenses to $205-$209 million, up from $182-$186 million, driven by the issuance of $1.25 billion in senior notes and repayment of borrowings, impacting the company’s debt balance and financial projections.

The most recent analyst rating on (MSCI) stock is a Buy with a $609.00 price target. To see the full list of analyst forecasts on MSCI stock, see the MSCI Stock Forecast page.

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.

The most recent analyst rating on (MSCI) stock is a Buy with a $630.00 price target. To see the full list of analyst forecasts on MSCI stock, see the MSCI Stock Forecast page.

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.

The most recent analyst rating on (MSCI) stock is a Buy with a $650.00 price target. To see the full list of analyst forecasts on MSCI stock, see the MSCI Stock Forecast page.