MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - NYSE:MCO - US6153691059 - Common Stock
478 USD
-1.48 (-0.31%)
Overall MCO gets a fundamental rating of 5 out of 10. We evaluated MCO against 237 industry peers in the Capital Markets industry. While MCO belongs to the best of the industry regarding profitability, 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
In the past year MCO was profitable.
MCO had a positive operating cash flow in the past year.
MCO had positive earnings in each of the past 5 years.
In the past 5 years MCO always reported a positive cash flow from operatings.
1.2 Ratios
MCO's Return On Assets of 14.56% is amongst the best of the industry. MCO outperforms 95.78% of its industry peers.
With an excellent Return On Equity value of 56.71%, MCO belongs to the best of the industry, outperforming 98.73% of the companies in the same industry.
MCO's Return On Invested Capital of 20.43% is amongst the best of the industry. MCO outperforms 97.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MCO is significantly above the industry average of 7.11%.
The last Return On Invested Capital (20.43%) for MCO is above the 3 year average (16.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.56% | ||
| ROE | 56.71% | ||
| ROIC | 20.43% |
ROA(3y)11.28%
ROA(5y)12.65%
ROE(3y)53.57%
ROE(5y)71.04%
ROIC(3y)16.07%
ROIC(5y)17.25%
1.3 Margins
MCO's Profit Margin of 29.92% is fine compared to the rest of the industry. MCO outperforms 75.53% of its industry peers.
MCO's Profit Margin has been stable in the last couple of years.
The Operating Margin of MCO (43.81%) is better than 79.32% of its industry peers.
MCO's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 73.75%, MCO belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
MCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.81% | ||
| PM (TTM) | 29.92% | ||
| GM | 73.75% |
OM growth 3Y-2.8%
OM growth 5Y-0.46%
PM growth 3Y-6.57%
PM growth 5Y-0.28%
GM growth 3Y-0.51%
GM growth 5Y0.36%
2. Health
2.1 Basic Checks
MCO has less shares outstanding than it did 1 year ago.
MCO has less shares outstanding than it did 5 years ago.
MCO has about the same debt/assets ratio as last year.
2.2 Solvency
The Debt to FCF ratio of MCO is 2.91, which is a good value as it means it would take MCO, 2.91 years of fcf income to pay off all of its debts.
MCO has a Debt to FCF ratio of 2.91. This is amongst the best in the industry. MCO outperforms 80.17% of its industry peers.
A Debt/Equity ratio of 1.76 is on the high side and indicates that MCO has dependencies on debt financing.
The Debt to Equity ratio of MCO (1.76) is worse than 75.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.84 indicates that MCO should not have too much problems paying its short term obligations.
The Current ratio of MCO (1.84) is better than 70.04% of its industry peers.
MCO has a Quick Ratio of 1.84. This is a normal value and indicates that MCO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MCO (1.84) is better than 70.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.60% over the past year.
The Earnings Per Share has been growing by 8.53% on average over the past years. This is quite good.
MCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.77%.
MCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.98% yearly.
EPS 1Y (TTM)15.6%
EPS 3Y0.49%
EPS 5Y8.53%
EPS Q2Q%22.12%
Revenue 1Y (TTM)8.77%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%10.7%
3.2 Future
Based on estimates for the next years, MCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.76% on average per year.
MCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.37% yearly.
EPS Next Y18.57%
EPS Next 2Y14.89%
EPS Next 3Y13.9%
EPS Next 5Y12.76%
Revenue Next Year8.22%
Revenue Next 2Y7.89%
Revenue Next 3Y7.9%
Revenue Next 5Y7.37%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.31, which means the current valuation is very expensive for MCO.
MCO's Price/Earnings ratio is a bit more expensive when compared to the industry. MCO is more expensive than 75.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of MCO to the average of the S&P500 Index (25.89), we can say MCO is valued slightly more expensively.
A Price/Forward Earnings ratio of 29.02 indicates a quite expensive valuation of MCO.
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 70.04% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. MCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.31 | ||
| Fwd PE | 29.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCO is valued a bit cheaper than 67.09% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.76 | ||
| EV/EBITDA | 24.15 |
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.
The excellent profitability rating of MCO may justify a higher PE ratio.
MCO's earnings are expected to grow with 13.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)4.02
EPS Next 2Y14.89%
EPS Next 3Y13.9%
5. Dividend
5.1 Amount
MCO has a yearly dividend return of 0.77%, which is pretty low.
Compared to an average industry Dividend Yield of 8.53, MCO is paying slightly less dividend.
With a Dividend Yield of 0.77, MCO pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
The dividend of MCO is nicely growing with an annual growth rate of 11.37%!
MCO has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MCO decreased recently.
Dividend Growth(5Y)11.37%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
MCO pays out 30.70% 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.
DP30.7%
EPS Next 2Y14.89%
EPS Next 3Y13.9%
NYSE:MCO (11/17/2025, 10:15:06 AM)
478
-1.48 (-0.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.06%
Inst Owner Change-0.53%
Ins Owners0.06%
Ins Owner Change-1.83%
Market Cap85.75B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts76.77
Price Target551.27 (15.33%)
Short Float %1.15%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend3.42
Dividend Growth(5Y)11.37%
DP30.7%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.72%
Min EPS beat(2)3.89%
Max EPS beat(2)5.56%
EPS beat(4)3
Avg EPS beat(4)4.19%
Min EPS beat(4)0%
Max EPS beat(4)7.32%
EPS beat(8)6
Avg EPS beat(8)4.89%
EPS beat(12)10
Avg EPS beat(12)7.55%
EPS beat(16)10
Avg EPS beat(16)4.39%
Revenue beat(2)2
Avg Revenue beat(2)1.95%
Min Revenue beat(2)1.71%
Max Revenue beat(2)2.19%
Revenue beat(4)3
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)2.19%
Revenue beat(8)6
Avg Revenue beat(8)1.88%
Revenue beat(12)9
Avg Revenue beat(12)1.8%
Revenue beat(16)11
Avg Revenue beat(16)0.76%
PT rev (1m)0.12%
PT rev (3m)0.4%
EPS NQ rev (1m)9.37%
EPS NQ rev (3m)9.51%
EPS NY rev (1m)5.26%
EPS NY rev (3m)6.83%
Revenue NQ rev (1m)2.02%
Revenue NQ rev (3m)2.18%
Revenue NY rev (1m)2.12%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.31 | ||
| Fwd PE | 29.02 | ||
| P/S | 11.43 | ||
| P/FCF | 35.76 | ||
| P/OCF | 31.56 | ||
| P/B | 21.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.15 |
EPS(TTM)13.93
EY2.91%
EPS(NY)16.47
Fwd EY3.45%
FCF(TTM)13.37
FCFY2.8%
OCF(TTM)15.14
OCFY3.17%
SpS41.81
BVpS22.06
TBVpS-24.66
PEG (NY)1.85
PEG (5Y)4.02
Graham Number83.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.56% | ||
| ROE | 56.71% | ||
| ROCE | 25.44% | ||
| ROIC | 20.43% | ||
| ROICexc | 24.76% | ||
| ROICexgc | 115.94% | ||
| OM | 43.81% | ||
| PM (TTM) | 29.92% | ||
| GM | 73.75% | ||
| FCFM | 31.97% |
ROA(3y)11.28%
ROA(5y)12.65%
ROE(3y)53.57%
ROE(5y)71.04%
ROIC(3y)16.07%
ROIC(5y)17.25%
ROICexc(3y)20.2%
ROICexc(5y)21.81%
ROICexgc(3y)132.71%
ROICexgc(5y)140.15%
ROCE(3y)20.01%
ROCE(5y)21.48%
ROICexgc growth 3Y21.88%
ROICexgc growth 5Y10.45%
ROICexc growth 3Y6.4%
ROICexc growth 5Y0.62%
OM growth 3Y-2.8%
OM growth 5Y-0.46%
PM growth 3Y-6.57%
PM growth 5Y-0.28%
GM growth 3Y-0.51%
GM growth 5Y0.36%
F-Score8
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 2.91 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 68.02% | ||
| Cap/Sales | 4.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.36% | ||
| Profit Quality | 106.86% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | N/A |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)77.23%
Cap/Depr(5y)66.52%
Cap/Sales(3y)4.74%
Cap/Sales(5y)3.68%
Profit Quality(3y)108.72%
Profit Quality(5y)105.07%
High Growth Momentum
Growth
EPS 1Y (TTM)15.6%
EPS 3Y0.49%
EPS 5Y8.53%
EPS Q2Q%22.12%
EPS Next Y18.57%
EPS Next 2Y14.89%
EPS Next 3Y13.9%
EPS Next 5Y12.76%
Revenue 1Y (TTM)8.77%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%10.7%
Revenue Next Year8.22%
Revenue Next 2Y7.89%
Revenue Next 3Y7.9%
Revenue Next 5Y7.37%
EBIT growth 1Y13.66%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year21.3%
EBIT Next 3Y13.49%
EBIT Next 5Y11.88%
FCF growth 1Y35.17%
FCF growth 3Y10.55%
FCF growth 5Y9.44%
OCF growth 1Y32.47%
OCF growth 3Y12.28%
OCF growth 5Y11.12%
MOODY'S CORP / MCO FAQ
What is the ChartMill fundamental rating of MOODY'S CORP (MCO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MCO.
What is the valuation status of MOODY'S CORP (MCO) stock?
ChartMill assigns a valuation rating of 2 / 10 to MOODY'S CORP (MCO). This can be considered as Overvalued.
How profitable is MOODY'S CORP (MCO) stock?
MOODY'S CORP (MCO) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for MCO stock?
The Price/Earnings (PE) ratio for MOODY'S CORP (MCO) is 34.31 and the Price/Book (PB) ratio is 21.67.
Can you provide the financial health for MCO stock?
The financial health rating of MOODY'S CORP (MCO) is 5 / 10.