MSCI: How 'The Customer Is Always Right' Leads To Shareholder Returns

Summary

• MSCI provides investment decision support tools and solutions for institutional investors globally. Their products include indices, portfolio construction software, ESG solutions, and private asset data analysis.
• MSCI's revenues are leveraged to stock market capitalization levels, with a focus on integrated offerings and excellent service.
• MSCI's balance sheet has significant negative tangible book value, which I would understand as a vote of confidence from bondholders who are willing to hold unsecured notes in MSCI.
• MSCI knows that the customer is always right - no matter how controversial, self-contradictory, or ineffective the customers' desires happen to be. Happy customers lead to good profit.
• MSCI, by an operating cash flow yield metric, is currently trading near an extreme high relative market valuation, but still has great long-term buy-and-hold prospects.

Jonathan Kitchen

Business Overview

MSCI Inc. (NYSE:MSCI) is a premier provider of investment decision support tools and solutions for investors globally, in particular institutional investors. MSCI sells research and advisory services to enable their clients to understand and analyze drivers of risk and

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.