MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - NYSE:MCO - US6153691059 - Common Stock
508.4 USD
-3.37 (-0.66%)
MCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 237 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.
MCO had a positive operating cash flow in the past year.
In the past 5 years MCO has always been profitable.
MCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MCO has a Return On Assets of 13.77%. This is amongst the best in the industry. MCO outperforms 94.51% of its industry peers.
Looking at the Return On Equity, with a value of 53.99%, MCO belongs to the top of the industry, outperforming 98.31% of the companies in the same industry.
The Return On Invested Capital of MCO (19.43%) is better than 96.62% of its industry peers.
MCO had an Average Return On Invested Capital over the past 3 years of 16.07%. This is significantly above the industry average of 7.61%.
The last Return On Invested Capital (19.43%) for MCO is above the 3 year average (16.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.77% | ||
| ROE | 53.99% | ||
| ROIC | 19.43% |
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
With a decent Profit Margin value of 29.18%, MCO is doing good in the industry, outperforming 73.84% of the companies in the same industry.
MCO's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 42.51%, MCO is doing good in the industry, outperforming 73.42% 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.
The Gross Margin of MCO (72.78%) is better than 79.32% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.51% | ||
| PM (TTM) | 29.18% | ||
| GM | 72.78% |
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
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
The debt/assets ratio for MCO has remained at the same level compared to a year ago.
2.2 Solvency
MCO has a debt to FCF ratio of 2.94. This is a good value and a sign of high solvency as MCO would need 2.94 years to pay back of all of its debts.
MCO's Debt to FCF ratio of 2.94 is amongst the best of the industry. MCO outperforms 81.01% of its industry peers.
MCO has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.76, MCO is not doing good in the industry: 77.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MCO has a Current Ratio of 1.75. This is a normal value and indicates that MCO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.75, MCO is in the better half of the industry, outperforming 68.35% of the companies in the same industry.
MCO has a Quick Ratio of 1.75. 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 1.75. This is in the better half of the industry: MCO outperforms 68.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.30% over the past year.
MCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.53% yearly.
MCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.47%.
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)17.3%
EPS 3Y0.49%
EPS 5Y8.53%
EPS Q2Q%8.54%
Revenue 1Y (TTM)11.47%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%4.46%
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 11.44% on average per year.
Based on estimates for the next years, MCO will show a small growth in Revenue. The Revenue will grow by 6.78% on average per year.
EPS Next Y12.55%
EPS Next 2Y12.38%
EPS Next 3Y12.48%
EPS Next 5Y11.44%
Revenue Next Year5.8%
Revenue Next 2Y6.91%
Revenue Next 3Y7.26%
Revenue Next 5Y6.78%
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
With a Price/Earnings ratio of 38.46, MCO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MCO indicates a slightly more expensive valuation: MCO is more expensive than 75.53% of the companies listed in the same industry.
MCO is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 32.26 indicates a quite expensive valuation of MCO.
Based on the Price/Forward Earnings ratio, MCO is valued a bit more expensive than 72.15% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. MCO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.46 | ||
| Fwd PE | 32.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCO is valued a bit cheaper than the industry average as 65.40% of the companies are valued more expensively.
MCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.47 | ||
| EV/EBITDA | 27.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 12.48% in the coming years.
PEG (NY)3.06
PEG (5Y)4.51
EPS Next 2Y12.38%
EPS Next 3Y12.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, MCO is not a good candidate for dividend investing.
MCO's Dividend Yield is slightly below the industry average, which is at 7.96.
With a Dividend Yield of 0.72, MCO pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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.
MCO has decreased its dividend recently.
Dividend Growth(5Y)11.37%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
31.75% 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.
DP31.75%
EPS Next 2Y12.38%
EPS Next 3Y12.48%
NYSE:MCO (9/18/2025, 10:37:08 AM)
508.4
-3.37 (-0.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.9%
Inst Owner Change-1.86%
Ins Owners0.07%
Ins Owner Change-0.54%
Market Cap91.21B
Analysts74.48
Price Target550.5 (8.28%)
Short Float %1.37%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend3.42
Dividend Growth(5Y)11.37%
DP31.75%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.6%
Min EPS beat(2)3.89%
Max EPS beat(2)7.32%
EPS beat(4)3
Avg EPS beat(4)5.6%
Min EPS beat(4)0%
Max EPS beat(4)11.21%
EPS beat(8)6
Avg EPS beat(8)4.79%
EPS beat(12)9
Avg EPS beat(12)6.17%
EPS beat(16)10
Avg EPS beat(16)4.36%
Revenue beat(2)2
Avg Revenue beat(2)1.54%
Min Revenue beat(2)1.37%
Max Revenue beat(2)1.71%
Revenue beat(4)3
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)5.41%
Revenue beat(8)5
Avg Revenue beat(8)1.56%
Revenue beat(12)8
Avg Revenue beat(12)1.05%
Revenue beat(16)11
Avg Revenue beat(16)0.88%
PT rev (1m)0.26%
PT rev (3m)6.99%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)1.41%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.46 | ||
| Fwd PE | 32.26 | ||
| P/S | 12.48 | ||
| P/FCF | 38.47 | ||
| P/OCF | 34.07 | ||
| P/B | 23.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.07 |
EPS(TTM)13.22
EY2.6%
EPS(NY)15.76
Fwd EY3.1%
FCF(TTM)13.22
FCFY2.6%
OCF(TTM)14.92
OCFY2.94%
SpS40.73
BVpS22.01
TBVpS-25.2
PEG (NY)3.06
PEG (5Y)4.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.77% | ||
| ROE | 53.99% | ||
| ROCE | 24.19% | ||
| ROIC | 19.43% | ||
| ROICexc | 23.64% | ||
| ROICexgc | 119.92% | ||
| OM | 42.51% | ||
| PM (TTM) | 29.18% | ||
| GM | 72.78% | ||
| FCFM | 32.45% |
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%
ROICexcg growth 3Y21.88%
ROICexcg 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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 67.4% | ||
| Cap/Sales | 4.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.2% | ||
| Profit Quality | 111.21% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | N/A |
F-Score7
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)17.3%
EPS 3Y0.49%
EPS 5Y8.53%
EPS Q2Q%8.54%
EPS Next Y12.55%
EPS Next 2Y12.38%
EPS Next 3Y12.48%
EPS Next 5Y11.44%
Revenue 1Y (TTM)11.47%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%4.46%
Revenue Next Year5.8%
Revenue Next 2Y6.91%
Revenue Next 3Y7.26%
Revenue Next 5Y6.78%
EBIT growth 1Y15.29%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year20.38%
EBIT Next 3Y13.25%
EBIT Next 5Y10.72%
FCF growth 1Y43.87%
FCF growth 3Y10.55%
FCF growth 5Y9.44%
OCF growth 1Y39.06%
OCF growth 3Y12.28%
OCF growth 5Y11.12%