2024-07-24 15:48:01 ET
Summary
- MSCI is a major beneficiary of the shift to passive investments like ETFs.
- With $15T of benchmarked assets, MSCI's revenue grew 2.5x and EPS 6.8x since 2014.
- MSCI's superb 95% customer retention rate and most of the revenue being subscription-based, make the earnings stream very predictable.
- MSCI offers a 1.17% dividend yield with aggressive DGR, all while reducing 32% of the company's float in the last 10 years.
- Valuation at 37x its Blended P/E is premium, yet clear forward growth expectations underline potential double-digit ROR for investors.
The chances are, if you are a growth or dividend growth investor, you already heard of MSCI Inc. ( MSCI ), also known as Morgan Stanley Capital International.
Despite its relatively smaller scale with a $40B market cap, compared to the larger peers such as S&P Global Inc. ( SPGI ) with $152B and Moody's Corporation ( MCO ) with $82B, MSCI is a major player in the financial services industry.
MSCI has been one of the key beneficiaries, if not the main one, of the shift from actively managed investment funds to passive investments such as ETFs and low-cost index-based products....
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For further details see:
Here Is Why MSCI Is The Perfect Example Of A Blue-Chip Compounder