Stock Analysis Compilation’s Substack recently shared a bullish thesis on MSCI Inc. The company’s shares were trading at $530.86 on July 23rd, with trailing and forward P/E ratios of 35.18 and 31.15, respectively according to Yahoo Finance. MSCI is known for its exceptional profitability, consistent growth, and disciplined capital allocation under founder-operator Henry Fernandez.

The article highlights MSCI’s impressive economics, with operating margins exceeding 50% and robust cash conversion due to upfront client payments. The company’s index franchise anchors its business, providing a foundation for growth and resilient earnings. MSCI’s capital allocation strategy has yielded an IRR above 30% on nearly $7 billion of repurchases since 2012.

Despite a recent ~7.6% depreciation in the stock price due to market volatility, the bullish thesis on MSCI remains strong. The company’s dominance in global indexing, deep client lock-in, and leadership in custom solutions support its long-term growth potential. Stock Analysis Compilation shares an optimistic view on MSCI’s profitability, growth, and capital allocation strategies.

Read more at Yahoo Finance: MSCI Inc. (MSCI): A Bull Case Theory