Monty Rakusen
MSCI (NYSE:MSCI) is a financial analytics company I haven’t written enough about. On the surface, it is one of the most profitable and well-known brands on the Street. It is a high free cash flow machine.
So why do fund
Unlocking Value From MSCI, The Index Fund Powerhouse
Summary
- MSCI is a highly profitable financial analytics company with a strong brand, delivering 45% net profit margins on $2.5 billion in annual revenue.
- The company benefits from recurring subscriptions and organic growth, although net new subscriptions outside the Americas are slightly down.
- MSCI's focus on institutional investors and high dividend yield make it a compelling investment compared to competitors like Morningstar.
- Despite trading at a high P/E ratio, MSCI's strong brand and monopolistic profit margins justify its premium valuation in the saturated index fund industry.
Vijar Kohli is a co-founder of Golden Door.
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