MSCI Inc. (MSCI): A Bull Case Theory

We came crossed a bullish thesis on MSCI Inc. connected Dividendology’s YouTube Channel. In this article, we volition summarize the bulls’ thesis connected MSCI. MSCI Inc.'s stock was trading astatine $587.44 arsenic of January 13th. MSCI’s trailing and guardant P/E were 37.19 and 30.30 respectively according to Yahoo Finance.

A antheral successful achromatic suit holding a tablet looks astatine banal marketplace information connected a monitor. Photo by Tima Miroshnichenko connected Pexels

MSCI Inc., unneurotic with its subsidiaries, provides captious determination enactment tools and solutions for the concern assemblage to negociate concern processes worldwide. The Index conception provides indexes for usage successful assorted areas of the concern process, including indexed fiscal products, specified arsenic ETFs, communal funds, annuities, futures, options, structured products, etc.

Recent insider enactment has drawn attraction to MSCI, with the CEO making a bid of stock purchases successful aboriginal December astatine a clip erstwhile the banal has materially lagged the broader market. MSCI shares are down astir 14.5% implicit the past twelvemonth and up lone astir 8% implicit the past 3 years, a wide underperformance versus the S&P 500. This disconnect is notable due to the fact that institution fundamentals person continued to strengthen, with gross maturation acold outpacing stock terms performance, implying that valuation has softly improved contempt constricted banal appreciation.

From a cardinal standpoint, MSCI has delivered accordant and durable growth. Revenue expanded from astir $1.7 cardinal successful 2020 to astir $2.86 cardinal by the extremity of 2024, extending a agelong grounds of dependable enlargement that dates backmost astir 2 decades. Since astir 2015, yearly gross maturation has typically ranged betwixt 8% and 12%, reflecting a highly predictable concern model. This stableness is supported by MSCI’s diversified level crossed scale licensing, analytics and hazard models, ESG and clime data, and backstage assets and existent property analytics, with the bulk of gross being recurring and lawsuit retention rates adjacent 95%.

The caller banal weakness appears driven by a moderation successful maturation alternatively than immoderate deterioration successful the business. Over the trailing 12 months, gross maturation slowed to astir 7%, prompting aggregate compressions. While MSCI inactive trades astatine a premium valuation with a trailing P/E of astir 34, this is good beneath humanities levels that often reached the 40s oregon higher. Recent positives see a humble summation successful 2025 escaped currency travel guidance and respective merchandise launches crossed backstage equity, determination equities, and biodiversity tools. With analysts projecting astir 12% yearly net maturation done 2029, MSCI offers charismatic agelong word instrumentality potential, helping explicate the caller insider buying contempt adjacent word valuation headwinds.