Sector: Financials | Focus: Financial Exchanges & Data
HQ: New York City, New York
Financial Risks
MSCI faces foreign currency exchange rate risk, impacting revenue and expenses denominated in non-USD currencies. Significant revenue concentration with BlackRock exposes MSCI to fluctuations in BlackRock's ETF and fund performance. Potential goodwill impairment exists, particularly for the Private Capital Solutions unit, due to uncertain future economic conditions and performance of recent acquisitions. Pending legal proceedings and regulatory investigations pose uncertain future losses. Changes in client contracts, including cancellations and non-renewals, could negatively impact future revenue.
Financial Upside
MSCI's operating revenues increased 15.9% in the three months ended September 30, 2024, driven by recurring subscriptions and asset-based fees. Recent acquisitions (Burgiss, Trove, Fabric, Foxberry) are expected to contribute to future growth and revenue. Strong AUM growth in ETFs linked to MSCI indexes suggests potential for continued revenue increases. The company has significant liquidity and access to capital markets, enabling future investments and acquisitions.
