MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCO - US6153691059 - Common Stock
492.01 USD
+4.17 (+0.85%)
492.01 USD
0 (0%)
Overall MCO gets a fundamental rating of 5 out of 10. We evaluated MCO against 238 industry peers in the Capital Markets industry. MCO scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, MCO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MCO had positive earnings in the past year.
MCO had a positive operating cash flow in the past year.
In the past 5 years MCO has always been profitable.
In the past 5 years MCO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MCO (14.56%) is better than 95.38% of its industry peers.
Looking at the Return On Equity, with a value of 56.71%, MCO belongs to the top of the industry, outperforming 98.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.43%, MCO belongs to the top of the industry, outperforming 97.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MCO is significantly above the industry average of 6.95%.
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 has a better Profit Margin (29.92%) than 75.63% of its industry peers.
MCO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 43.81%, MCO is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
In the last couple of years the Operating Margin of MCO has remained more or less at the same level.
MCO's Gross Margin of 73.75% is amongst the best of the industry. MCO outperforms 81.51% of its industry peers.
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
Compared to 1 year ago, MCO has less shares outstanding
The number of shares outstanding for MCO has been reduced compared to 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.
Looking at the Debt to FCF ratio, with a value of 2.91, MCO is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
MCO has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
MCO has a worse Debt to Equity ratio (1.76) than 75.63% 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
MCO has a Current 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 Current ratio of MCO (1.84) is better than 71.01% of its industry peers.
A Quick Ratio of 1.84 indicates that MCO should not have too much problems paying its short term obligations.
MCO has a better Quick ratio (1.84) than 71.01% 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.
Looking at the last year, MCO shows a quite strong growth in Revenue. The Revenue has grown by 8.77% in the last year.
Measured over the past years, MCO shows a small growth in Revenue. The Revenue has been growing by 7.98% on average per year.
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
MCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.76% yearly.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.32, the valuation of MCO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MCO indicates a slightly more expensive valuation: MCO is more expensive than 75.21% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.37. MCO is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.87, which means the current valuation is very expensive for MCO.
Based on the Price/Forward Earnings ratio, MCO is valued a bit more expensive than 69.75% of the companies in the same industry.
MCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.32 | ||
| Fwd PE | 29.87 |
4.2 Price Multiples
67.23% of the companies in the same industry are more expensive than MCO, based on the Enterprise Value to EBITDA ratio.
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 | 36.6 | ||
| EV/EBITDA | 24.41 |
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.
MCO's earnings are expected to grow with 13.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.9
PEG (5Y)4.14
EPS Next 2Y14.89%
EPS Next 3Y13.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, MCO is not a good candidate for dividend investing.
MCO's Dividend Yield is slightly below the industry average, which is at 8.39.
Compared to an average S&P500 Dividend Yield of 2.32, MCO's dividend is way lower than the S&P500 average.
| 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
30.70% of the earnings are spent on dividend by MCO. This is a low number and sustainable payout ratio.
MCO's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP30.7%
EPS Next 2Y14.89%
EPS Next 3Y13.9%
492.01
+4.17 (+0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.06%
Inst Owner Change-0.46%
Ins Owners0.06%
Ins Owner Change-0.5%
Market Cap87.77B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts76.77
Price Target554.75 (12.75%)
Short Float %1.2%
Short Ratio2.16
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)0.63%
PT rev (3m)0.77%
EPS NQ rev (1m)2.45%
EPS NQ rev (3m)9.55%
EPS NY rev (1m)3.81%
EPS NY rev (3m)5.35%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.02%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.32 | ||
| Fwd PE | 29.87 | ||
| P/S | 11.7 | ||
| P/FCF | 36.6 | ||
| P/OCF | 32.31 | ||
| P/B | 22.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.41 |
EPS(TTM)13.93
EY2.83%
EPS(NY)16.47
Fwd EY3.35%
FCF(TTM)13.44
FCFY2.73%
OCF(TTM)15.23
OCFY3.1%
SpS42.05
BVpS22.18
TBVpS-24.8
PEG (NY)1.9
PEG (5Y)4.14
Graham Number83.38
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 35.32 and the Price/Book (PB) ratio is 22.18.
Can you provide the financial health for MCO stock?
The financial health rating of MOODY'S CORP (MCO) is 4 / 10.