Latest news with #MSCIInc.
Yahoo
6 days ago
- Business
- Yahoo
MSCI Inc. (MSCI): A Bull Case Theory
We came across a bullish thesis on MSCI Inc. on Stock Analysis Compilation's Substack. In this article, we will summarize the bulls' thesis on MSCI. MSCI Inc.'s share was trading at $530.86 as of July 23rd. MSCI's trailing and forward P/E were 35.18 and 31.15, respectively according to Yahoo Finance. An executive presenting a business proposal in a modern open office space, surrounded by data analytics displays. MSCI is a rare compounding machine distinguished by unmatched profitability, consistent ~10% organic growth, and disciplined capital allocation under founder-operator Henry Fernandez. The company's recurring revenue model drives remarkable growth persistence, with approximately one-third of expansion derived from disciplined pricing power across mission-critical services. Group-level organic growth has averaged 10% for over a decade, with only 2021 standing out as an extraordinary post-pandemic rebound. MSCI's economics are equally exceptional, with operating margins regularly surpassing 50%, robust cash conversion exceeding 100% of earnings due to upfront client payments, and returns on invested capital among the highest in the industry, all supported by minimal capital and working capital requirements. Its Index franchise anchors the business, providing the foundation for persistent secular growth and an exceptionally resilient earnings profile. Capital allocation is a core differentiator: MSCI prioritizes organic investments to sustain product differentiation while selectively acquiring complementary assets in analytics, ESG, and private markets to unlock new profit pools. The firm's rigorously applied 'triple crown' framework—optimizing leverage, maintaining a 40–50% payout ratio, and opportunistic buybacks and partnerships—has yielded an IRR above 30% on nearly $7 billion of repurchases since 2012. This combination of pricing power, recurring revenues, and an owner-operator mindset positions MSCI for continued high-return expansion. At a five-year trough multiple of under 30x forward earnings, the stock appears attractively valued relative to its quality and durability, offering strong convexity in prospective returns. With its leading Index business, deep moat, and disciplined stewardship, MSCI is poised to compound shareholder value at double-digit rates for years to come. Previously we covered a bullish thesis on MSCI Inc. by Business Model Mastery in February 2025, which highlighted MSCI's dominance in global indexing through deep client lock-in, network effects, and leadership in custom solutions. The stock has depreciated ~7.6% due to market volatility, yet the thesis stands. Stock Analysis Compilation shares an identical view but emphasizes MSCI's unmatched profitability, steady growth, and disciplined capital allocation. MSCI Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held MSCI at the end of the first quarter which was 62 in the previous quarter. While we acknowledge the potential of MSCI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
Miami Herald
21-04-2025
- Business
- Miami Herald
South Korea's presidential front-runner vows to boost stock markets
Lee Jae-myung, South Korea's presidential-election front-runner, said he would make changes to the nation's equity markets to eradicate stock manipulation and protect shareholders. The former leader of the main opposition Democratic Party will seek gradual reform of the corporate governance system by amending a key bill on board duties, and by protecting minority shareholders during corporate actions such as duplicate listings, he said in a Facebook post. He also promised to come up with a concrete road map for South Korea to get an upgrade to MSCI Inc.'s list of developed markets from its current status of emerging market. Lee said those measures will end the era of the so-called "Korea Discount," the persistent undervaluations in the Korean equity market, and will help the equity benchmark Kospi to reach the 5,000 level. The Kospi traded almost flat at about 2,485 as of Monday. South Korea is holding a presidential election on June 3 after former President Yoon Suk Yeol was impeached following his botched attempt at martial law in December. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
07-03-2025
- Business
- Yahoo
Kuwait Stocks Outshine Gulf Peers as Ruler Pushes for Reforms
(Bloomberg) -- Kuwaiti stocks are outpacing their Gulf peers this year, with banks driving a rally built on optimism that long-delayed economic reforms are gaining traction. Trump Administration Plans to Eliminate Dozens of Housing Offices Republican Mayor Braces for Tariffs: 'We Didn't Budget for This' How Upzoning in Cambridge Broke the YIMBY Mold NYC's Finances Are Sinking With Gauge Falling to 11-Year Low How Sanctuary Cities Are Fighting Trump, Again The Boursa Kuwait Premier Market has jumped 11% this year, more than four times the pace of gains in neighboring Dubai and twice as much as MSCI Inc.'s emerging markets gauge. The buzz around Kuwaiti equities is a wager that moves by ruler Sheikh Mishaal Al-Ahmed Al-Sabah to clear obstacles holding back government spending will work. He suspended parliament for four years last May to end political deadlock, with a spinoff of that expected to be legislation allowing the OPEC member to sell its first bonds since 2017. The potential for other reforms in areas like property finance have helped power a surge in banking stocks. Boubyan Bank KSCP, Burgan Bank SAK and Warba Bank KSCP are all up at least 18% this year. 'The mortgage law is expected to accelerate growth for Kuwait banks' retail franchises,' said Jaap Meijer, head of research at Arqaam Capital in Dubai. Kuwaiti stocks also have the attraction of less-demanding valuations than the average of Gulf peers. Kuwait's benchmark index trades at 14.1 times forward earnings, which is below an average of 15.7 times over the past five years. Plus, the Kuwait index could potentially win an upgrade from secondary to advanced emerging-market status in index compiler FTSE Russell's September review. While that won't trigger higher passive inflows, it would boost sentiment. There are risks to the positive picture: legislative reforms may still take longer than investors like and a boost to the Kuwaiti bourse's standing in the emerging-market universe may prove elusive. For now, the mood is upbeat enough to draw investors and raise the prospect of additional listings as companies look to benefit from the confident tone. 'The current market conditions augur well for initial public offerings, so we will not be surprised if we see a couple of IPOs this year,' said Junaid Ansari, director of Investment Strategy and Research at Kamco Invest in Kuwait City. 'And IPOs support market performance in general.' Snack Makers Are Removing Fake Colors From Processed Foods The Mysterious Billionaire Behind the World's Most Popular Vapes Rich People Are Firing a Cash Cannon at the US Economy—But at What Cost? An All-American Finance Empire Drew Billions—and a Regulator's Attention Greenland Voters Weigh Their Election's Most Important Issue: Trump ©2025 Bloomberg L.P.
Bloomberg
06-03-2025
- Business
- Bloomberg
Kuwait Stocks Outshine Gulf Peers as Ruler Pushes for Reforms
Kuwaiti stocks are outpacing their Gulf peers this year, with banks driving a rally built on optimism that long-delayed economic reforms are gaining traction. The Boursa Kuwait Premier Market has jumped 11% this year, more than four times the pace of gains in neighboring Dubai and twice as much as MSCI Inc.'s emerging markets gauge.
Bloomberg
25-02-2025
- Business
- Bloomberg
Emerging Stocks Plunge on Trump's Latest Moves Against China
By and Zijia Song Updated on Save Emerging-market stocks plunged Monday, falling the most in more than three weeks, as US President Donald Trump's latest executive order targeting China stirred up a new round of risk aversion. MSCI Inc.'s benchmark for EM equities ended the day 1% lower, after rallying 10% in the past six weeks driven by bets that Chinese technology companies, especially Alibaba Group Holding Ltd., are making strides in artificial intelligence. That had taken the index's valuation to a four-month high, positioning it near highs that have sparked selloffs over the past two years.
