MOODY'S CORP (MCO)
US6153691059 - Common Stock
MCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 212 industry peers in the Capital Markets industry. MCO scores excellent on profitability, but there are some minor concerns on its financial health. MCO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MCO had positive earnings in the past year.
In the past year MCO had a positive cash flow from operations.
In the past 5 years MCO has always been profitable.
Each year in the past 5 years MCO had a positive operating cash flow.
1.2 Ratios
MCO's Return On Assets of 11.21% is amongst the best of the industry. MCO outperforms 89.05% of its industry peers.
MCO has a better Return On Equity (47.08%) than 97.14% of its industry peers.
With an excellent Return On Invested Capital value of 17.43%, MCO belongs to the best of the industry, outperforming 92.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MCO is significantly above the industry average of 8.22%.
The last Return On Invested Capital (17.43%) for MCO is above the 3 year average (16.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 47.08% | ||
| ROIC | 17.43% |
ROA(3y)11.88%
ROA(5y)12.77%
ROE(3y)61.39%
ROE(5y)105.97%
ROIC(3y)16.02%
ROIC(5y)17.66%
1.3 Margins
MCO has a Profit Margin of 27.01%. This is in the better half of the industry: MCO outperforms 64.29% of its industry peers.
MCO's Profit Margin has declined in the last couple of years.
MCO has a Operating Margin of 39.51%. This is in the better half of the industry: MCO outperforms 62.86% of its industry peers.
MCO's Operating Margin has declined in the last couple of years.
The Gross Margin of MCO (72.30%) is better than 74.29% of its industry peers.
MCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.51% | ||
| PM (TTM) | 27.01% | ||
| GM | 72.3% |
OM growth 3Y-6.21%
OM growth 5Y-2.8%
PM growth 3Y-6.38%
PM growth 5Y-1.62%
GM growth 3Y-0.49%
GM growth 5Y-0.13%
2. Health
2.1 Basic Checks
The number of shares outstanding for MCO has been reduced compared to 1 year ago.
Compared to 5 years ago, MCO has less shares outstanding
Compared to 1 year ago, MCO has an improved debt to assets ratio.
2.2 Solvency
MCO has an Altman-Z score of 6.39. This indicates that MCO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.39, MCO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
The Debt to FCF ratio of MCO is 3.40, which is a good value as it means it would take MCO, 3.40 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.40, MCO is doing good in the industry, outperforming 66.19% of the companies in the same industry.
MCO has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.75, MCO is not doing good in the industry: 77.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 6.39 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.42 indicates that MCO should not have too much problems paying its short term obligations.
MCO's Current ratio of 1.42 is in line compared to the rest of the industry. MCO outperforms 56.19% of its industry peers.
MCO has a Quick Ratio of 1.42. This is a normal value and indicates that MCO is financially healthy and should not expect problems in meeting its short term obligations.
MCO has a Quick ratio (1.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
MCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.82%, which is quite good.
Measured over the past 5 years, MCO shows a small growth in Earnings Per Share. The EPS has been growing by 6.07% on average per year.
MCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.07%.
The Revenue has been growing slightly by 5.90% on average over the past years.
EPS 1Y (TTM)18.82%
EPS 3Y-0.76%
EPS 5Y6.07%
EPS Q2Q%12.71%
Revenue 1Y (TTM)15.07%
Revenue growth 3Y3.27%
Revenue growth 5Y5.9%
Sales Q2Q%21.5%
3.2 Future
The Earnings Per Share is expected to grow by 14.06% on average over the next years. This is quite good.
Based on estimates for the next years, MCO will show a quite strong growth in Revenue. The Revenue will grow by 8.48% on average per year.
EPS Next Y10.42%
EPS Next 2Y12.49%
EPS Next 3Y13.77%
EPS Next 5Y14.06%
Revenue Next Year10.58%
Revenue Next 2Y9.69%
Revenue Next 3Y9.63%
Revenue Next 5Y8.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 39.66, MCO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MCO indicates a rather expensive valuation: MCO more expensive than 81.43% of the companies listed in the same industry.
MCO is valuated rather expensively when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.54, MCO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MCO indicates a slightly more expensive valuation: MCO is more expensive than 74.76% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.91, MCO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.66 | ||
| Fwd PE | 32.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCO is on the same level as its industry peers.
MCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.5 | ||
| EV/EBITDA | 27.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MCO does not grow enough to justify the current Price/Earnings ratio.
MCO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MCO's earnings are expected to grow with 13.77% in the coming years.
PEG (NY)3.81
PEG (5Y)6.53
EPS Next 2Y12.49%
EPS Next 3Y13.77%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, MCO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.15, MCO is paying slightly less dividend.
With a Dividend Yield of 0.83, MCO pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
On average, the dividend of MCO grows each year by 11.82%, which is quite nice.
MCO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)11.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MCO pays out 34.34% of its income as dividend. This is a sustainable payout ratio.
The dividend of MCO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP34.34%
EPS Next 2Y12.49%
EPS Next 3Y13.77%
MOODY'S CORP
NYSE:MCO (6/14/2024, 7:21:51 PM)
After market: 408.12 0 (0%)408.12
-2.5 (-0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap74.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.66 | ||
| Fwd PE | 32.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.81
PEG (5Y)6.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.21% | ||
| ROE | 47.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 39.51% | ||
| PM (TTM) | 27.01% | ||
| GM | 72.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.82%
EPS 3Y-0.76%
EPS 5Y
EPS Q2Q%
EPS Next Y10.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.07%
Revenue growth 3Y3.27%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y