MSCI Inc. Class A (MSCI)

In the past six months, MSCI's stock price has increased by 14.21%. MSCI shares gained 27.2%, outperforming the broader Zacks Finance sector due to strong demand for custom and factor index modules, its recurring revenue business model, and the growing adoption of its ESG and Climate solutions. MSCI achieved 11.1% organic revenue growth in Q3 2024, driven by strong performance across Analytics, ESG, and Index Investments. MSCI partnered with Moody's to enhance ESG and sustainability transparency and with Microsoft to expand its clientele. MSCI launched MSCI Carbon Project Ratings and MSCI Private Company Data Connect. MSCI reported Q2 2025 EPS of $4.17, exceeding estimates, with revenue of $772.68M. Analysts have a "Moderate Buy" consensus for MSCI, with a high price target of $675.00. MSCI announced the results of its 2025 Market Classification Review and its 2025 Global Market Accessibility Review. Alliance Trust underperformed the MSCI All Country World index in the first half of 2024. MSCI faces increasing pricing pressure due to the growing availability of free indices and lower spending by asset managers on data.

MSCI's revenue model is primarily based on recurring subscription fees, providing a stable revenue stream, with approximately 96% of its total revenue in 2024 coming from recurring sources. While the core business is recurring, there can be some non-recurring sales, which formed about 4% of revenue in 2023. The rebalancing of MSCI Quality Indices occurs semi-annually, typically at the end of May and November. General market trends can influence demand for investment decision support tools, but MSCI's business model suggests that demand is more driven by long-term investment trends and regulatory requirements rather than short-term seasonal patterns.

MSCI Inc. is a financial services company that provides critical decision support tools and services for the investment community. It licenses indices to index funds, with over $16.5 trillion in funds based on MSCI indices as of 2025. MSCI's major products and services are categorized into Index (60% of FY2024 revenue), Analytics (25% of FY2024 revenue), ESG and Climate (10% of FY2024 revenue), and All Other – Private Assets (5% of FY2024 revenue).

MSCI has a significant global presence, serving over 6,600 clients in more than 95 countries as of December 31, 2022. The company has offices in over 32 cities across 23 countries. As of December 31, 2024, MSCI employed 6,132 people, with its workforce distributed globally: 50.0% in the Asia Pacific region, 24.9% in Europe, Middle East and Africa, 17.0% in the U.S. and Canada, and 8.1% in Mexico and Brazil.

MSCI has a robust reputation for delivering innovative solutions and critical decision support tools to the global investment community. MSCI has solidified its leadership in the ESG and climate space with product launches and strategic partnerships. Consistent strong financial metrics contribute positively to its brand image. MSCI's continuous investment in research and development ensures it meets evolving client needs and maintains its market position. Client retention rates are consistently high, typically above 95%.

MSCI Inc. is a publicly traded entity with a diverse ownership structure. Approximately 54.58% to 78.63% of MSCI's stock is owned by institutional investors, including Vanguard Group Inc. and BlackRock, Inc. Insiders own approximately 3.30% of the company's stock, with David Robert Hale being the largest individual shareholder. Public companies and individual investors collectively own between 18.07% and 24.05%.