Quick Thoughts on MSCI - 7investing 7investing

Quick Thoughts on MSCI

MSCI (NYSE: MSCI) is a leading data platform who provides the deeply-embedded benchmarks used by ETFs and asset managers.

A few thoughts I have about the company:

  • Great, recurring income stream that is difficult for customers to displace.
  • Somewhat similar to the financial profile of exchanges like CME Group or Intercontinental Exchange. Deeply-embedded within the financial services industry.
  • Tied to BlackRock as largest client.
  • Excellent profitability: 58% operating margin and 22% return on invested capital.
  • Increased its divided by 25% last year and is buying back¬† around 3% of its shares each year. Today it yields 1%.
  • The stock appears to be ridiculously expensive; though it’s also rarely ever cheap.

Cash compounder that could be a nice opportunity to consider for any dividend-reinvesting accounts.