As of July 30, 2026
1. Company Overview
MSCI Inc. is a leading global provider of critical decision-support tools and services for the investment community. The firm operates across four primary business segments: Index, Analytics, Sustainability & Climate, and Private Assets.
Exchange: NYSE | Sector: Financial Services | Industry: Financial Data & Exchanges
Headquarters: New York, NY | CEO: Henry A. Fernandez
2. Key Stock & Valuation Snapshot
| Metric | Value | Reference / Context |
| Stock Price | ~$579.63 | 52-Week Range: $501.08 – $644.77 |
| Market Capitalization | ~$42.4 Billion | Large-Cap Financial Data Provider |
| Trailing P/E (TTM) | ~31.40x | 3-Year Historical Range: 30.1x – 47.2x |
| Price / Book (P/B) | N/A (Negative Equity) | Driven by aggressive historic share repurchases |
| Adjusted EPS (Q2 2026) | $4.94 (+18.5% YoY) | Missed consensus estimates ($4.98) |
| Dividend Yield (TTM) | ~1.4% | Annualized Dividend: $8.20/share |
3. Financial Performance (Q2 2026 Summary)
MSCI’s asset-light, high-margin subscription model continues to drive strong earnings growth and operating efficiency.
- Operating Revenues: $867.0 million (+12.2% YoY).
- Total Run Rate: $3.48 billion (+12.0% YoY).
- Recurring Subscription Retention Rate: 95.3%.
- Operating Margin: 56.2% (vs. 55.0% in Q2 2025).
- Adjusted EBITDA Margin: 62.1%.
- Net Income: $342.0 million (+12.6% YoY).
4. Quality Metrics Dashboard
| Metric Category | MSCI Performance | Target Benchmark | Pass / Fail Status |
| EPS Growth Next 3 Years | ~22.8% Annualized | > 7.0% | PASS |
| EPS Growth Next Year | ~19.82% | > 7.0% | PASS |
| ROCE | 45.6% | > 20.0% | PASS |
| ROE (TTM) | N/A (Negative Equity) | > 20.0% | N/A (Aggressive Buybacks) |
| 5-Year Average ROE | N/A (Negative Equity) | > 20.0% | N/A (Negative Equity Base) |
| ROIC (TTM) | 38.53% | > 20.0% | PASS |
| 5-Year Average ROIC | 26.68% | > 20.0% | PASS |
| TTM Net Profit Margin | 40.7% | > 10.0% | PASS |
| 5-Year Net Profit Margin | 39.4% | > 10.0% | PASS |
| TTM Gross Margin | 83.0% | > 40.0% | PASS |
| 5-Year Gross Margin | 82.2% | > 40.0% | PASS |
| TTM Free Cash Flow Margin | 47.44% | > 10.0% | PASS |
| 5-Year Free Cash Flow Margin | 47.36% | > 10.0% | PASS |
| FCF Conversion Ratio | 116.46% | > 80.0% | PASS |
| CAPEX to Revenue (TTM) | ~1.75% | <5.0% | PASS (Ultra-light capital demands) |
| 5-Year CAPEX to Revenue | ~2.37% | < 5.0% | PASS |
| TTM Revenue Growth | 9.75% | > 5.0% | PASS |
| 5-Year Revenue Growth | 13.1% | > 5.0% | PASS |
| TTM EPS Growth | 10.57% | > 7.0% | PASS |
| Last 5 Year EPS Growth | 17.4% | > 7.0% | PASS |
| Sloan Ratio | -3.92% | -10.0% to +10.0% | PASS (High earnings quality) |
| Debt to Equity | N/A | < 2.0x | MONITOR (High Debt, offset by cash flow) |
| Net Debt to EBITDA | ~3.1x | < 3.0x | FAIL |
5. Growth Catalysts
- Passive ETF Expansion: Asset-based fees hit a record run rate driven by global ETF inflows pushing MSCI-linked ETF assets above $2.7 trillion.
- Private Markets & Wealth Expansion: Strategic partnerships and analytics expansion deeper into private equity, real estate, and private wealth channels.
- AI Integration in Portfolio Analytics: Next-gen software tools and custom index engines increase annual contract values across asset managers.
6. Dividend & Capital Return Profile
- Quarterly Dividend: $2.05 per share ($8.20 annualized, +13.9% increase YoY).
- Payout Ratio: ~42%–45% of net earnings.
- Share Buybacks: Over $544 million repurchased through H1 2026 alone.
7. Historical Stock Returns
| Time Horizon | MSCI Total Return | Benchmark / Context |
| 1-Month | +4.47% | Outperformed broad financials sector |
| YTD (2026) | +3.91% | Sideways consolidation following peak |
| 1-Year | +6.08% | Trading near mid-to-high end of 52-wk range |
| 3-Year Return | ~10.36% (Cumulative) | Slow performance through macro volatility |
| 5-Year CAGR | ~0.71% (Annualized) | Has not kept up with the S&P 500 |
8. SWOT Analysis
Strengths
- High-moat benchmark index monopoly shared with S&P Global and FTSE Russell.
- Pristine quality profile: 83% gross margins and >100% FCF conversion.
- Predictable recurring revenues with a 95.3% retention rate.
Weaknesses
- Asset-based fees (~25-30% of revenue) are vulnerable to broad market downturns.
- High long-term debt levels due to aggressive share buybacks.
Opportunities
- Expansion into private asset classes (private credit, real estate, infrastructure).
- Direct indexing and custom ESG tools for wealth channels.
Threats
- Direct indexing / self-indexing trends by major asset managers.
- Regulatory shifts surrounding European ESG disclosures.
9. Investment Thesis
- Core Case: MSCI represents a premium “tollbooth” model on global capital markets. High switching costs and sticky subscription revenues enable consistent mid-teens EPS growth across market cycles, validated by elite ROIC (>30%) and FCF conversion (>110%).
10. Dividend Stockpile Score
