MSCI, Msci Inc.
We use advanced technology, including artificial intelligence, to improve how we collect and validate data and enhance the capabilities and insights we deliver to clients.
Read top to bottom, the owner's questions in the order an owner asks them: what the business is, whether the record holds, whether it survives and is any good, and what you would be paying. New to the questions? Start with the Method.
The business in brief
read the 10-K →What this business is and what moves its needle, drawn from its own SEC filings. The lens to bring to the numbers below, not the answer.
- What it is
- Revenue is Recurring subscriptions (73%), Asset-based fees (25%) and Non-recurring (3%).
- What moves the needle
- Pricing power, the surest mark of a moat. What decides it: whether it can raise prices with inflation and not lose the customer, whether the brand still earns its place on the shelf, and whether volume holds when a cheaper rival appears. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on capital has run high across the record (median 37%, above 15% in 10 of 10 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. The steadier read is owner earnings: roughly 45% of revenue reaches owners as cash, consistently. High, durable returns can mark a moat, but whether this one is real pricing power or an accounting artifact is the judgment the 10-K is for.
No model wrote a word of this. Every line is arithmetic on the company's filings, shown in full in the sections below; the judgment is yours.
Where the money comes from
read the 10-K →Revenue spreads across 4 segments, the largest Index at 57%.
- Index57%$1.8B
- Analytics23%$714M
- Sustainability and Climate11%$354M
- Other Operating9%$279M
From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record, 2016–2025
realized figures from each filing, no estimates| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| RevenueRevenue | $1.2B | $1.3B | $1.4B | $1.6B | $1.7B | $2.0B | $2.2B | $2.5B | $2.9B | $3.1B | $3.2B |
| Gross marginGross mgn | 78% | 79% | 80% | 81% | 83% | — | — | — | — | — | 91% |
| Operating marginOp. mgn | 42.4% | 45.5% | 47.9% | 48.5% | 52.2% | 52.5% | 53.7% | 54.8% | 53.5% | 54.7% | 55.4% |
| Net incomeNet inc. | $261M | $304M | $508M | $564M | $602M | $726M | $871M | $1.1B | $1.1B | $1.2B | $1.3B |
| EPS (diluted)EPS | $2.70 | $3.31 | $5.66 | $6.59 | $7.12 | $8.70 | $10.72 | $14.39 | $14.05 | $15.69 | $17.98 |
| Owner earningsOwner earn. | $410M | $371M | $583M | $680M | $789M | $923M | $1.1B | $1.2B | $1.5B | $1.5B | $1.6B |
| ROICROIC | 21% | 24% | 37% | 47% | 48% | 35% | 40% | 35% | 40% | 45% | 47% |
| Cash & investmentsCash+inv | $792M | $890M | $904M | $1.5B | $1.3B | $1.4B | $994M | $462M | $409M | $515M | $385M |
| Net debt / (cash)Net debt | $1.3B | $1.2B | $1.7B | $1.6B | $2.1B | $2.7B | $3.5B | $4.0B | $4.1B | $5.7B | $6.0B |
| Dividends / shareDiv/sh | $1.00 | $1.30 | $1.91 | $2.61 | $2.92 | $3.62 | $4.59 | $5.52 | $6.45 | $7.26 | — |
| Book value / shareBVPS | $3.29 | $4.36 | $-1.86 | $-0.90 | $-5.24 | $-1.96 | $-12.41 | $-9.27 | $-11.90 | $-34.64 | $-37.79 |
Owner’s Scorecard
Will it survive?
- ComfortableOperating income $1.7B ÷ interest expense $210M
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
- ModerateTotal debt $6.2B ÷ operating income $1.7B
Years of operating profit it would take to repay all debt. A first read, not a credit rating: it's gross debt (not netted against cash) over EBIT (not EBITDA), and a cyclical year distorts it.
- Debt, net of cash $5.6BMeaningful net debtCash $515M + ST investments $71M − debt $6.2B
Netting $586M of cash and short-term investments against $6.2B of debt leaves $5.6B owed, about 3.3× a year's operating profit, versus the gross figure above. Net debt is the leverage figure that matters; the gross ratio above ignores the cash already set against it. Strategic or illiquid investments aren't counted here.
- TightDSO 77 + DIO 0 − DPO 19 days
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)
Is it a good business?
- ExceptionalNOPAT $1.4B ÷ invested capital $3.0B (debt + equity − cash)
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; below ~8% the company may destroy value as it grows. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- Cash machineOwner Earnings $1.5B = operating cash $1.6B − capex $39M
What an owner could take out without starving the business. That's 49% of revenue. Treating stock comp as the real expense it is (less $111M of SBC) leaves $1.4B. Honest caveat: capex here blends maintenance and growth, so steady-state Owner Earnings may run higher (see capex vs. depreciation).
- Cash-backedCash from ops $1.6B ÷ net income $1.2B
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.
How is the cash used?
- Returns most of itDividends + buybacks $3.0B ÷ Owner Earnings $1.5B
Of $1.5B Owner Earnings, $3.0B (196%) went back to shareholders, $557M dividends, $2.5B buybacks. Net of $111M stock comp, the real buyback was about $2.4B. Returning most of it signals a mature cash machine; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
- Investing or harvesting? 1.68×ExpandingCapex $39M ÷ depreciation $23M
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Durability & moat, 2016–2025
A moat is a high return that doesn’t fade, reinvested at high returns. Here is what the record says, judgments, not another chart of the numbers.
- Profitable years 10 of 10
Never lost money over the record, the earnings stability Graham insisted on.
- Return on capital ≥ 15% 10 of 10 yrs
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
- Operating margin 42% (FY2016) → 55% (FY2025)
Margins widened over the record, pricing power intact or improving.
- Reinvestment, incremental ROIC 53%
Every extra dollar the company reinvested earned a high return, it is still compounding, not coasting on an old moat.
- Owner earnings growth +16%/yr
Free cash to owners grew about 16% a year over the record.
- Worst year 2016 · 42.4% op. margin
Stayed profitable even in its hardest year, the resilience that survives recessions.
- Share count −2.5%/yr
The share count is shrinking, buybacks are quietly growing your slice of the business.
- Dividend record rising
Paid and raised the dividend across the record, the continuity Graham prized.
Solvent is not the same as cheap; growing is not the same as good. These are vital signs, not a verdict, the judgment is yours, and the filing is one click away.
How the cash was used, 2016–2025
Over the record, the business generated $9.3B of operating cash, and how management split it is, as Buffett insists, the job that matters most. Here it reads as a mature cash machine, most of what it earns goes straight back to owners.
- Reinvested$270M · 3%
- Dividends$3.0B · 33%
- Buybacks$8.4B · 90%
It reinvested $270M (3%) back into the business and returned $11.5B (123%) to owners, $3.0B in dividends, $8.4B in buybacks. Total debt rose $4.3B across the span. It returned and reinvested more than it generated, the gap was covered by debt or existing cash.
Buybacks are gross of stock issued to employees; net of that, the real return to owners is lower (see Management & pay). And the mix alone doesn't grade management, what matters is the return earned on the dollars reinvested (see incremental ROIC in the durability report).
Management & pay
Two questions Buffett actually asks about pay: is stock compensation, a real expense, whatever the income statement pretends, quietly large, and is the top wildly out of line with the floor. He's no populist about it; he just wants pay that's rational and earned, and comp committees that aren't lapdogs.
- Stock-based compensation$111M
The slice of the business handed to employees in shares this year, 4% of revenue, equal to 6% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. And note the trap, the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Graham’s defensive-investor test
4 of 6 metGraham gave the defensive investor seven numerical criteria in The Intelligent Investor. Here they are, run mechanically on the filings, his framework, not our verdict. Meeting them is a floor of safety, not a reason to buy; missing one is no veto, since many fine modern businesses fail his strictest liquidity tests by design. The worth is in seeing exactly where a company stands against the canon, every number sourced.
- Adequate size PassRevenue ≥ $2B · $3.1B
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity MissCurrent ratio ≥ 2× · 0.90×
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt MissDebt ≤ working capital · $6.2B vs ($185M) WC
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Earnings stability PassA profit every year (10-yr record) · no losses
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record PassUninterrupted dividends · paid every year (10)
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Earnings growth PassEarnings +33% over the record · +223%
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Earnings are $15.69/share and book value $-34.64/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Graham would be the first to say a checklist is a starting point, not an answer. These are his defensive, bargain-hunter's tests, the cigar-butt lens. Buffett and Munger grew past it, paying fair prices for wonderful businesses; that lens lives in the moat and owner-earnings work above, and both still matter. Clearing Graham’s tests earns a closer look; failing them earns harder questions, not a dismissal.
What the price implies
reverse-DCFA price is the one input we don't pull, you bring it. Type today's close (read it off any broker or quote site) and see the owner-earnings growth you'd have to believe to justify it, set beside what Msci Inc. has actually delivered. Nothing is stored; the number stays in your browser.
Enter a price above to run it.
Graham capped the multiple at 15×; Buffett and Munger let that rule go, a wonderful business can deserve 50× if the thesis holds. Read it as the bargain-hunter's floor, not a ceiling on good sense.
The discount rate is your interest rate, what a dollar years from now is worth today, anchored to the long-term Treasury yield (~4–5% today, plus whatever premium you want for risk). Drag it toward the risk-free rate and watch how much growth the price suddenly “needs”: interest rates are gravity on valuations.
Owner earnings $1.6B on 73M diluted shares; net debt $6.0B. This is a lens, not a price target, it says what you'd have to believe, not what the company is worth, and it runs on one year of (noisy) owner earnings at assumptions you can see and change.
What the filing emphasizes, FY2025
read the 10-K →Each year a 10-K must name what could go wrong, in the company's own words. Here are the ones Graham and Buffett would stop on, each set against the figure from the same filings that bears on it, anchored to a period you can find in the record above. We point; the judgment is yours.
- Customer concentrationRisk Factors
Who the revenue leans on. When one buyer is a large slice of sales, that buyer holds the pricing power, and its troubles become the company's.
“No single customer accounted for 10.0% or more of operating revenues within Analytics, Sustainability and Climate or All Other Private Assets for the years ended December 31, 2025, 2024 and 2023.”
From the recordRevenue exposed (TTM)$3.2B - Debt terms & refinancingMD&A
The fine print behind the debt. Covenants and near-term maturities decide who is really in control when a year goes badly.
“The indentures governing our Senior Notes (the "Indentures") and the Credit Agreement contain covenants that limit our and our subsidiaries' ability to, among other things, incur liens, enter into sale/leaseback transactions and consolidate, merge or sell all or substantially all of our assets, and …”
From the recordBalance sheet (TTM)$5.6B meaningful net debt · interest covered 8.2× - Litigation & contingenciesRisk Factors
Claims an owner inherits. Most disclosure is boilerplate; this fires only on an actual matter, a named suit, a settlement, a contingency, a number.
“During the three months ended December 31, 2025, none of the Company's directors or officers, as defined in Section 16 of the Exchange Act, adopted , modified or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regul…”
A judgment, not a number, weigh it against the filing yourself. - Regulation & policyRisk Factors
Rules that can rewrite the economics, tariffs, antitrust, data, export controls.
“This standalone selling price may be the contract price but is more often than not the best estimate of the price the Company would receive for selling the product or service separately in similar circumstances and to other similar customers.”
A judgment, not a number, weigh it against the filing yourself.
What changed, FY2025 vs FY2024
read the 10-K →Most of a 10-K is boilerplate carried over verbatim; the signal is in what's new. These lines appear this year and weren't there last, figure updates filtered out, so only the language shift remains.
- “Other Expense (Income), Net Other expense (income), net consists primarily of interest we pay on our outstanding indebtedness, including losses on early extinguishment of debt, gains and losses associated with equity method and other minority investments, foreign currency exchange rate gains and los…”
- “General and Administrative G&A expenses decreased 1.2% for the year ended December 31, 2025, primarily driven by decreases in non-compensation costs reflecting lower transaction costs, partially offset by increases in compensation and benefits costs as a result of increased headcount costs as well a…”
- “Our research-based data, analytics and indexes, supported by advanced technology, set standards for global investors and help our clients understand risks and opportunities, make better investment decisions and unlock innovation.”
- “Run Rate may differ from revenues recognized in accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers.”
- “Other Expense (Income), Net Other expense (income), net consists primarily of interest we pay on our outstanding indebtedness, including losses on early extinguishment of debt, gains and losses associated with equity method and other minority investments, foreign currency exchange rate gains and los…”
Classic text analysis over the filing itself, no model wrote a word of this, and every quote is the company's own.
Peers, Business services
The same industry, side by side on owner economics, compare, don't rank by a single number.● marks best in the group.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| UBERUber Technologies, Inc. | $52.0B | — | 10.7% | 18% | 19% |
| VVisa Inc. | $40.0B | — | 60.0% | 43% | 54% |
| PYPLPaypal Holdings, Inc. | $33.2B | — | 18.3% | 23% | 17% |
| MAMastercard Inc | $32.8B | — | 57.6% | 94% | 52% |
| DASHDoordash, Inc. | $13.7B | — | 5.3% | 13% | 16% |
| EBAYEbay Inc. | $11.1B | 71% | 20.5% | 19% | 13% |
| GPNGlobal Payments Inc. | $7.7B | 73% | 22.8% | 4% | 26% |
| MSCIMsci Inc. | $3.1B | 91% | 54.7% | 45% | 49% |