Core Viewpoint - The article discusses the recent poor performance of certain stocks, highlighting the need for investors to discern between genuine buying opportunities and potential pitfalls in the market [1]. Group 1: Stocks to Sell - **FactSet (FDS)**: The stock has seen a one-month return of -5.7% and is currently trading at $261.06 per share, with a forward P/E ratio of 14.6x [2][3]. - **Kemper (KMPR)**: This stock has experienced a significant one-month return of -26.8%, trading at $36.43 per share with a forward P/B ratio of 0.8x [4][6]. Group 2: Stock to Watch - **Broadridge (BR)**: The stock has a one-month return of -7.3%. It has shown muted annual revenue growth of 5.5% over the last two years, with earnings growth lagging behind peers at an annual increase of 8.1% [7][8]. - Broadridge processes over $10 trillion in trades daily and manages proxy voting for over 800 million equity positions, providing technology-driven solutions for financial institutions [9]. - The company stands out due to its unique value proposition, achieving above-market annual sales growth of 8.9% over the last five years, an increase in free cash flow margin by 8.6 percentage points, and rising returns on capital [10].

Core Viewpoint - MSCI Inc. has announced a public offering of $500 million in senior unsecured notes with a fixed interest rate of 5.150% due in 2036 [1] Group 1: Offering Details - The total principal amount of the offering is $500 million [1] - The notes are priced at an issue price of 99.650% [1] - Interest on the notes will be 5.150% per annum, payable in cash semi-annually starting March 15, 2026 [1]

Core Insights - S&P Global Inc. (SPGI) reported strong third-quarter 2025 results, with earnings and revenues exceeding expectations [1][9] - Adjusted earnings per share (EPS) reached $4.73, surpassing the Zacks Consensus Estimate by 7.5% and increasing 21.6% year over year [1][9] - Revenues totaled $3.9 billion, beating the consensus estimate by 1.4% and growing 8.8% year over year [1][9] Revenue Breakdown - Marketing Intelligence revenues were $1.2 billion, a 6% increase from the previous year, meeting estimates [3] - Ratings revenues grew 12% to $1.2 billion, exceeding projections of $1.1 billion [3] - Commodity Insights revenues reached $556 million, up 6% year over year, but slightly missed estimates [3] - Mobility and Indices segments saw revenues of $445 million and $462 million, respectively, with year-over-year increases of 8% and 11% [4] Profitability Metrics - Adjusted operating profit was $2 billion, reflecting a 16% year-over-year increase [4] - The adjusted operating profit margin improved to 52%, up 330 basis points from the previous year [4] Financial Position - At the end of Q3 2025, SPGI had cash and cash equivalents of $1.7 billion, down from $1.8 billion in the previous quarter [5] - Long-term debt remained stable at $11.4 billion [5] - The company generated $1.5 billion in cash from operating activities, with free cash flow of $1.4 billion [5] Future Guidance - SPGI raised its adjusted EPS guidance to $17.60-$17.85, above the previous range of $17.00-$17.25 and higher than the Zacks Consensus Estimate of $17.29 [6] - Revenue growth guidance was increased to 7-8%, up from the previous 5-7% [6] - Capital expenditure guidance is set at $180-$190 million [6]

Q3 2025 Financial Performance - Revenue increased to $617.4 million, representing an 8.4% reported increase and a 9.0% organic increase[13] - Adjusted Operating Income increased to $150.6 million, compared to $130.3 million in Q3 24[13] - Free Cash Flow increased to $160.1 million, a 2.8% increase from $155.8 million in Q3 24[13] - The Adjusted Operating Margin was 24.4%[102] Segment Performance - Morningstar Direct Platform revenue reached $211.1 million, with a 6.3% reported increase and a 6.2% organic increase; Adjusted Operating Income was $93.7 million[49] - PitchBook revenue reached $169.0 million, with a 7.9% reported increase and a 7.7% organic increase; Adjusted Operating Income was $52.9 million[58] - Morningstar Credit revenue reached $91.1 million, with a 28.5% reported increase and a 27.0% organic increase; Adjusted Operating Income was $28.1 million[67] - Morningstar Wealth revenue reached $62.1 million, with a 0.5% reported increase and a 9.8% organic increase; Adjusted Operating Income was $3.1 million[81] - Morningstar Retirement revenue reached $34.2 million, with a 7.5% reported and organic increase; Adjusted Operating Income was $16.9 million[93] Cash Flow and Capital Allocation - Operating Cash Flow was $195.7 million[26] - Capital Allocation included $170.1 million in share repurchases, $35.6 million in capital expenditures, and $19.2 million in dividends paid[27]

Third Quarter 2025 Earnings Presentation October 28, 2025 © 2025 MSCI Inc. All rights reserved. Introduction → Forward-Looking Statements 3 → Foreign currency exchange rate fluctuations reflect the difference between the current period results as reported compared to the current period results recalculated using the foreign currency exchange rates in effect for the comparable prior period. While operating revenues adjusted for the impact of foreign currency fluctuations includes asset-based fees that have b ...

Core Insights - MSCI reported strong financial performance for Q3 2025, with record recurring sales in its Index and Analytics product lines, and a significant increase in asset-based fees driven by growth in assets under management (AUM) [3][4][6] Financial Highlights - Operating revenues reached $793.4 million, a 9.5% increase year-over-year, with organic operating revenue growth of 9.0% [4][6] - Operating income was $447.7 million, up 11.6%, resulting in an operating margin of 56.4% [4][9] - Net income increased by 15.8% to $325.4 million, with diluted EPS rising 19.0% to $4.25 [4][11] - Adjusted EBITDA was $494.4 million, reflecting a 9.7% increase, with an adjusted EBITDA margin of 62.3% [4][12] Revenue Breakdown - Recurring subscription revenues grew by 7.9%, while asset-based fees surged by 17.1% [4][6] - The Index segment saw operating revenues of $451.2 million, an 11.4% increase, driven by higher asset-based fees and recurring subscription revenues [14][15] - The Analytics segment reported operating revenues of $182.2 million, up 5.7%, primarily from recurring subscriptions [17][18] - Sustainability and Climate segment revenues increased by 7.7% to $90.1 million, driven by growth in recurring subscriptions [20][21] Client Metrics - The total Run Rate as of September 30, 2025, was $3,186.5 million, up 10.1%, with a retention rate of 94.7% [7][4] - Organic recurring subscription Run Rate growth was 7.4% [7] Capital Allocation - MSCI repurchased $1,248.9 million worth of shares, with an average repurchase price of $559.95 [4][28] - Approximately $137.4 million in dividends were paid to shareholders, with a cash dividend of $1.80 per share declared for Q4 2025 [4][29] Guidance - MSCI provided guidance for Full-Year 2025, projecting operating expenses between $1,415 million and $1,445 million, and net cash provided by operating activities between $1,540 million and $1,590 million [31][30]

Group 1 - MSCI Inc.'s share price has returned to levels seen in 2021, with a dividend yield of 1.3%, indicating limited growth potential as a compounder [1] Group 2 - Various methods exist for sell-side analysts to determine a company's "fair" value, including DCF, multiples approach, and reverse valuation, each with its own strengths and weaknesses [2] - The Free Cash Flow to Equity (FCFE) model is utilized to assess what truly belongs to shareholders, focusing on earnings, amortization, and investments while ignoring working capital and debt changes [2] - Forecasts employ the H-model for a 10-year two-stage growth fade, with terminal growth aligned to the risk-free rate, and all cash flows discounted by the cost of equity [2]

Core Insights - MSCI has underperformed the S&P 500 Index over the past year, with a decline of 8% compared to the index's increase of 15% [1] Company Performance - The stock's performance has led to a "Hold" rating, which has been validated by its underperformance relative to the market [1] Analyst Background - The analyst has a long position in MSCI shares, indicating a personal investment interest in the company [2]

Group 1 - The article discusses the worst-performing stocks in the S&P 500 index for September, highlighting significant declines in share prices [1][8]. - CarMax experienced a 24.8% drop in stock value due to disappointing second-quarter results, with revenue and profits down by 25% year over year, reflecting decreased consumer enthusiasm for car purchases [3]. - FactSet Research Systems saw a 22.3% decline, attributed to results that fell below analyst expectations [4]. - Kenvue's stock fell by 21.9%, influenced by negative public perception regarding Tylenol's alleged link to autism following statements from public figures [5]. - Deckers Outdoor's shares decreased by 17.5%, impacted by concerns over tariffs and economic uncertainty, along with disappointing earnings reports [6]. - Synopsys experienced a 16.7% decline due to weakened demand from a major customer and previous export restrictions, which have since been lifted [7]. Group 2 - Despite the declines in these stocks, the S&P 500 index gained 3.5% in September, indicating a broader market resilience [8]. - The article suggests that while some stocks may have fallen due to temporary issues, they could present buying opportunities if the market has overreacted and the company's future remains promising [8][9]. - The Motley Fool Stock Advisor analyst team has identified ten stocks they believe are better investment options than CarMax, indicating a shift in investor focus [10].

Core Insights - FactSet (FDS) reported mixed results for Q4 fiscal 2025, with earnings per share of $4.05 missing the Zacks Consensus Estimate by 2.4%, while revenues of $596.9 million exceeded expectations, increasing by 6.2% year-over-year [1][9] Revenue Performance - Organic revenues grew by 4.5% year-over-year to $562.2 million, with regional growth rates of 5.3% in the Americas, 1.7% in EMEA, and 5.9% in Asia Pacific [3] - Revenues from the Americas segment were $388.7 million, up 7.3% year-over-year, while EMEA revenues were $147.4 million, a 3% increase, and Asia Pacific revenues reached $60.8 million, marking 7.4% growth [4] Annual Subscription Value (ASV) and Professional Services - FactSet's ASV plus professional services totaled $2.4 billion, reflecting a 5.7% increase year-over-year, with buy-side and sell-side organic ASV growth rates of 5.5% and 4.3%, respectively [5] - Organic ASV from the United States was $1.5 billion, up 6%, while EMEA and Asia Pacific ASV were $586.3 million (4.2% increase) and $242.7 million (7.2% increase), respectively [6] Operating Results - Adjusted operating income was $201.7 million, slightly above estimates, with an adjusted operating margin of 33.8%, down 200 basis points from the previous year [7] Balance Sheet and Cash Flow - The company ended the quarter with cash and cash equivalents of $337.7 million, down from $356.4 million in the previous quarter, and long-term debt remained at $1.4 billion [8] - FactSet generated $212.1 million in cash from operating activities, with capital expenditures of $34 million, resulting in a free cash flow utilization of $178.1 million [8] Fiscal 2026 Guidance - For fiscal 2026, FactSet anticipates revenues between $2.423 billion and $2.448 billion, lower than the Zacks Consensus Estimate of $2.45 billion, and expects earnings per share in the range of $16.9 to $17.6, also below the consensus estimate of $18.51 [10]