MOODY'S CORP (MCO) Fundamental Analysis & Valuation

NYSE:MCO • US6153691059

Current stock price

429.23 USD
-11.84 (-2.68%)
Last:

This MCO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. MCO Profitability Analysis

1.1 Basic Checks

  • In the past year MCO was profitable.
  • In the past year MCO had a positive cash flow from operations.
  • MCO had positive earnings in each of the past 5 years.
  • Each year in the past 5 years MCO had a positive operating cash flow.
MCO Yearly Net Income VS EBIT VS OCF VS FCFMCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • MCO has a Return On Assets of 15.53%. This is amongst the best in the industry. MCO outperforms 94.98% of its industry peers.
  • The Return On Equity of MCO (60.66%) is better than 99.16% of its industry peers.
  • MCO has a Return On Invested Capital of 20.93%. This is amongst the best in the industry. MCO outperforms 96.65% of its industry peers.
  • MCO had an Average Return On Invested Capital over the past 3 years of 18.20%. This is significantly above the industry average of 7.27%.
  • The 3 year average ROIC (18.20%) for MCO is below the current ROIC(20.93%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 15.53%
ROE 60.66%
ROIC 20.93%
ROA(3y)13.27%
ROA(5y)12.89%
ROE(3y)55.61%
ROE(5y)60.51%
ROIC(3y)18.2%
ROIC(5y)17.14%
MCO Yearly ROA, ROE, ROICMCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 200 -200 -300

1.3 Margins

  • The Profit Margin of MCO (31.86%) is better than 78.24% of its industry peers.
  • MCO's Profit Margin has been stable in the last couple of years.
  • With an excellent Operating Margin value of 44.86%, MCO belongs to the best of the industry, outperforming 82.85% of the companies in the same industry.
  • MCO's Operating Margin has been stable in the last couple of years.
  • MCO has a Gross Margin of 74.44%. This is amongst the best in the industry. MCO outperforms 82.01% of its industry peers.
  • In the last couple of years the Gross Margin of MCO has remained more or less at the same level.
Industry RankSector Rank
OM 44.86%
PM (TTM) 31.86%
GM 74.44%
OM growth 3Y7.09%
OM growth 5Y-0.31%
PM growth 3Y8.23%
PM growth 5Y-0.76%
GM growth 3Y1.83%
GM growth 5Y0.52%
MCO Yearly Profit, Operating, Gross MarginsMCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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7

2. MCO Health Analysis

2.1 Basic Checks

  • The number of shares outstanding for MCO has been reduced compared to 1 year ago.
  • The number of shares outstanding for MCO has been reduced compared to 5 years ago.
  • Compared to 1 year ago, MCO has an improved debt to assets ratio.
MCO Yearly Shares OutstandingMCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
MCO Yearly Total Debt VS Total AssetsMCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 6.96 indicates that MCO is not in any danger for bankruptcy at the moment.
  • MCO's Altman-Z score of 6.96 is amongst the best of the industry. MCO outperforms 89.96% of its industry peers.
  • The Debt to FCF ratio of MCO is 2.72, which is a good value as it means it would take MCO, 2.72 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.72, MCO belongs to the top of the industry, outperforming 80.75% of the companies in the same industry.
  • MCO has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
  • MCO has a Debt to Equity ratio of 1.73. This is in the lower half of the industry: MCO underperforms 73.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.73
Debt/FCF 2.72
Altman-Z 6.96
ROIC/WACCN/A
WACCN/A
MCO Yearly LT Debt VS Equity VS FCFMCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.74 indicates that MCO should not have too much problems paying its short term obligations.
  • With a decent Current ratio value of 1.74, MCO is doing good in the industry, outperforming 71.55% of the companies in the same industry.
  • MCO has a Quick Ratio of 1.74. 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 of 1.74. This is in the better half of the industry: MCO outperforms 71.55% of its industry peers.
Industry RankSector Rank
Current Ratio 1.74
Quick Ratio 1.74
MCO Yearly Current Assets VS Current LiabilitesMCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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5

3. MCO Growth Analysis

3.1 Past

  • MCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.79%, which is quite good.
  • The Earnings Per Share has been growing by 8.07% on average over the past years. This is quite good.
  • The Revenue has grown by 8.89% in the past year. This is quite good.
  • The Revenue has been growing slightly by 7.52% on average over the past years.
EPS 1Y (TTM)19.79%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%38.93%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%12.98%

3.2 Future

  • MCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.77% yearly.
  • Based on estimates for the next years, MCO will show a small growth in Revenue. The Revenue will grow by 6.55% on average per year.
EPS Next Y13.1%
EPS Next 2Y12.42%
EPS Next 3Y11.55%
EPS Next 5Y10.77%
Revenue Next Year7.79%
Revenue Next 2Y7.77%
Revenue Next 3Y7.63%
Revenue Next 5Y6.55%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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.
MCO Yearly Revenue VS EstimatesMCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
MCO Yearly EPS VS EstimatesMCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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2

4. MCO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 28.71, the valuation of MCO can be described as expensive.
  • Based on the Price/Earnings ratio, MCO is valued a bit more expensive than 75.31% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of MCO to the average of the S&P500 Index (25.54), we can say MCO is valued inline with the index average.
  • The Price/Forward Earnings ratio is 25.39, which means the current valuation is very expensive for MCO.
  • 65.69% of the companies in the same industry are cheaper than MCO, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, MCO is valued at the same level.
Industry RankSector Rank
PE 28.71
Fwd PE 25.39
MCO Price Earnings VS Forward Price EarningsMCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCO indicates a somewhat cheap valuation: MCO is cheaper than 67.78% of the companies listed in the same industry.
  • MCO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 29.67
EV/EBITDA 21.05
MCO Per share dataMCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of MCO may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)3.56
EPS Next 2Y12.42%
EPS Next 3Y11.55%

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3

5. MCO Dividend Analysis

5.1 Amount

  • MCO has a yearly dividend return of 0.95%, which is pretty low.
  • Compared to an average industry Dividend Yield of 6.72, MCO is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.89, MCO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.95%

5.2 History

  • The dividend of MCO is nicely growing with an annual growth rate of 11.82%!
  • MCO has paid a dividend for at least 10 years, which is a reliable track record.
  • MCO has decreased its dividend recently.
Dividend Growth(5Y)11.82%
Div Incr Years1
Div Non Decr Years1
MCO Yearly Dividends per shareMCO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • MCO pays out 28.51% of its income as dividend. This is a sustainable payout ratio.
  • MCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.51%
EPS Next 2Y12.42%
EPS Next 3Y11.55%
MCO Yearly Income VS Free CF VS DividendMCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
MCO Dividend Payout.MCO Dividend Payout, showing the Payout Ratio.MCO Dividend Payout.PayoutRetained Earnings

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MCO Fundamentals: All Metrics, Ratios and Statistics

MOODY'S CORP

NYSE:MCO (3/24/2026, 3:10:08 PM)

429.23

-11.84 (-2.68%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-18
Earnings (Next)04-20
Inst Owners79.32%
Inst Owner Change0.3%
Ins Owners0.07%
Ins Owner Change2.36%
Market Cap76.40B
Revenue(TTM)7.72B
Net Income(TTM)2.46B
Analysts79.33
Price Target561.25 (30.76%)
Short Float %1.52%
Short Ratio1.66
Dividend
Industry RankSector Rank
Dividend Yield 0.95%
Yearly Dividend3.92
Dividend Growth(5Y)11.82%
DP28.51%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.5%
Min EPS beat(2)5.43%
Max EPS beat(2)5.56%
EPS beat(4)4
Avg EPS beat(4)5.55%
Min EPS beat(4)3.89%
Max EPS beat(4)7.32%
EPS beat(8)7
Avg EPS beat(8)6.37%
EPS beat(12)10
Avg EPS beat(12)7.14%
EPS beat(16)11
Avg EPS beat(16)4.95%
Revenue beat(2)2
Avg Revenue beat(2)1.33%
Min Revenue beat(2)0.48%
Max Revenue beat(2)2.19%
Revenue beat(4)4
Avg Revenue beat(4)1.44%
Min Revenue beat(4)0.48%
Max Revenue beat(4)2.19%
Revenue beat(8)7
Avg Revenue beat(8)2.1%
Revenue beat(12)9
Avg Revenue beat(12)1.69%
Revenue beat(16)11
Avg Revenue beat(16)0.71%
PT rev (1m)-2.42%
PT rev (3m)1.51%
EPS NQ rev (1m)3.01%
EPS NQ rev (3m)3.11%
EPS NY rev (1m)2.12%
EPS NY rev (3m)2.52%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.35%
Valuation
Industry RankSector Rank
PE 28.71
Fwd PE 25.39
P/S 9.9
P/FCF 29.67
P/OCF 26.34
P/B 18.85
P/tB N/A
EV/EBITDA 21.05
EPS(TTM)14.95
EY3.48%
EPS(NY)16.91
Fwd EY3.94%
FCF(TTM)14.47
FCFY3.37%
OCF(TTM)16.3
OCFY3.8%
SpS43.36
BVpS22.78
TBVpS-23.48
PEG (NY)2.19
PEG (5Y)3.56
Graham Number87.53
Profitability
Industry RankSector Rank
ROA 15.53%
ROE 60.66%
ROCE 26.94%
ROIC 20.93%
ROICexc 25.86%
ROICexgc 124.13%
OM 44.86%
PM (TTM) 31.86%
GM 74.44%
FCFM 33.36%
ROA(3y)13.27%
ROA(5y)12.89%
ROE(3y)55.61%
ROE(5y)60.51%
ROIC(3y)18.2%
ROIC(5y)17.14%
ROICexc(3y)23.05%
ROICexc(5y)21.2%
ROICexgc(3y)144.74%
ROICexgc(5y)126.2%
ROCE(3y)23.43%
ROCE(5y)22.06%
ROICexgc growth 3Y18.23%
ROICexgc growth 5Y-6.22%
ROICexc growth 3Y19.02%
ROICexc growth 5Y0.38%
OM growth 3Y7.09%
OM growth 5Y-0.31%
PM growth 3Y8.23%
PM growth 5Y-0.76%
GM growth 3Y1.83%
GM growth 5Y0.52%
F-Score8
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 1.73
Debt/FCF 2.72
Debt/EBITDA 1.77
Cap/Depr 67.92%
Cap/Sales 4.22%
Interest Coverage 14.73
Cash Conversion 73.59%
Profit Quality 104.72%
Current Ratio 1.74
Quick Ratio 1.74
Altman-Z 6.96
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)71.37%
Cap/Depr(5y)70.74%
Cap/Sales(3y)4.43%
Cap/Sales(5y)4.14%
Profit Quality(3y)114.73%
Profit Quality(5y)103.03%
High Growth Momentum
Growth
EPS 1Y (TTM)19.79%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%38.93%
EPS Next Y13.1%
EPS Next 2Y12.42%
EPS Next 3Y11.55%
EPS Next 5Y10.77%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%12.98%
Revenue Next Year7.79%
Revenue Next 2Y7.77%
Revenue Next 3Y7.63%
Revenue Next 5Y6.55%
EBIT growth 1Y16.29%
EBIT growth 3Y20.13%
EBIT growth 5Y7.19%
EBIT Next Year23.68%
EBIT Next 3Y13.4%
EBIT Next 5Y10.35%
FCF growth 1Y2.14%
FCF growth 3Y29.31%
FCF growth 5Y4.74%
OCF growth 1Y2.22%
OCF growth 3Y25.32%
OCF growth 5Y6.21%

MOODY'S CORP / MCO Fundamental Analysis FAQ

What is the ChartMill fundamental rating of MOODY'S CORP (MCO) stock?

ChartMill assigns a fundamental rating of 6 / 10 to MCO.


Can you provide the valuation status for MOODY'S CORP?

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 9 / 10.


What is the valuation of MOODY'S CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for MOODY'S CORP (MCO) is 28.71 and the Price/Book (PB) ratio is 18.85.


Can you provide the dividend sustainability for MCO stock?

The dividend rating of MOODY'S CORP (MCO) is 3 / 10 and the dividend payout ratio is 28.51%.