MSCI (MSCI) Stock Analysis & Winston Score

MSCI Inc. helps investors around the world decide where to put their money. The company creates stock market indexes — like the MSCI Emerging Markets Index — that track how groups of stocks perform across different countries and industries. It also sells tools that help large investors measure risk in their portfolios. Its main customers are banks, hedge funds, pension funds, and asset managers. MSCI makes most of its money through subscriptions and licensing fees. When a fund company creates an ETF or index fund based on an MSCI index, it pays MSCI an ongoing fee tied to the assets in that fund — this creates a steady, recurring revenue stream. The company operates globally, with significant revenue from the Americas, Europe, and Asia, and generates over 80 cents of gross profit for every dollar of revenue. Its biggest growth driver is the continued expansion of passive investing and ETFs worldwide, though a sharp drop in global stock market values could reduce the asset-based fees it collects.