MOODY'S CORP (MCO) Fundamental Analysis & Valuation

NYSE:MCO • US6153691059

Current stock price

457.99 USD
-2.75 (-0.6%)
At close:
457.99 USD
0 (0%)
After Hours:

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.
  • 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.
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's Return On Assets of 16.94% is amongst the best of the industry. MCO outperforms 92.05% of its industry peers.
  • The Return On Equity of MCO (83.33%) is better than 99.16% of its industry peers.
  • MCO has a Return On Invested Capital of 24.73%. This is amongst the best in the industry. MCO outperforms 98.33% 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 7.30%.
  • The last Return On Invested Capital (24.73%) for MCO is above the 3 year average (18.20%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 16.94%
ROE 83.33%
ROIC 24.73%
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 (31.69%) is better than 78.24% of its industry peers.
  • In the last couple of years the Profit Margin of MCO has remained more or less at the same level.
  • MCO's Operating Margin of 44.84% is amongst the best of the industry. MCO outperforms 82.85% of its industry peers.
  • 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 (74.43%) is better than 81.59% 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 44.84%
PM (TTM) 31.69%
GM 74.43%
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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5

2. MCO Health Analysis

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.
  • 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

  • The Debt to FCF ratio of MCO is 2.53, which is a good value as it means it would take MCO, 2.53 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 2.53, MCO belongs to the best of the industry, outperforming 80.75% of the companies in the same industry.
  • A Debt/Equity ratio of 2.13 is on the high side and indicates that MCO has dependencies on debt financing.
  • MCO has a worse Debt to Equity ratio (2.13) than 79.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.13
Debt/FCF 2.53
Altman-Z N/A
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

  • MCO has a Current Ratio of 1.16. 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 Current ratio of 1.16. This is comparable to the rest of the industry: MCO outperforms 51.46% of its industry peers.
  • MCO has a Quick Ratio of 1.16. 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 (1.16) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 1.16
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 19.40%, which is quite good.
  • MCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.07% yearly.
  • MCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.95%.
  • Measured over the past years, MCO shows a small growth in Revenue. The Revenue has been growing by 7.52% on average per year.
EPS 1Y (TTM)19.4%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%13.05%
Revenue 1Y (TTM)8.95%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%8.06%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.31% on average over the next years. This is quite good.
  • Based on estimates for the next years, MCO will show a small growth in Revenue. The Revenue will grow by 6.85% on average per year.
EPS Next Y13.13%
EPS Next 2Y12.56%
EPS Next 3Y11.81%
EPS Next 5Y11.31%
Revenue Next Year7.54%
Revenue Next 2Y7.68%
Revenue Next 3Y7.55%
Revenue Next 5Y6.85%

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 25

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2

4. MCO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 29.64, MCO can be considered very expensive at the moment.
  • 74.48% of the companies in the same industry are cheaper than MCO, based on the Price/Earnings ratio.
  • MCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 24.18, MCO is valued on the expensive side.
  • 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 65.27% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of MCO to the average of the S&P500 Index (21.99), we can say MCO is valued inline with the index average.
Industry RankSector Rank
PE 29.64
Fwd PE 24.18
MCO Price Earnings VS Forward Price EarningsMCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 63.18% of the companies listed in the same industry.
  • MCO's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 29.68
EV/EBITDA 21.75
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 MCO does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of MCO may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)3.67
EPS Next 2Y12.56%
EPS Next 3Y11.81%

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3

5. MCO Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.89%, MCO is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 6.53, MCO is paying slightly less dividend.
  • With a Dividend Yield of 0.89, MCO pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.89%

5.2 History

  • The dividend of MCO is nicely growing with an annual growth rate of 11.82%!
  • MCO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • MCO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.82%
Div Incr Years2
Div Non Decr Years2
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 27.70% 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.
DP27.7%
EPS Next 2Y12.56%
EPS Next 3Y11.81%
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 (4/28/2026, 8:04:00 PM)

After market: 457.99 0 (0%)

457.99

-2.75 (-0.6%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)04-22
Earnings (Next)07-21
Inst Owners79.23%
Inst Owner Change-0.3%
Ins Owners0.08%
Ins Owner Change2.34%
Market Cap81.52B
Revenue(TTM)7.87B
Net Income(TTM)2.50B
Analysts80
Price Target550.18 (20.13%)
Short Float %2.33%
Short Ratio2.66
Dividend
Industry RankSector Rank
Dividend Yield 0.89%
Yearly Dividend3.92
Dividend Growth(5Y)11.82%
DP27.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.52%
Min EPS beat(2)1.61%
Max EPS beat(2)5.43%
EPS beat(4)4
Avg EPS beat(4)4.12%
Min EPS beat(4)1.61%
Max EPS beat(4)5.56%
EPS beat(8)7
Avg EPS beat(8)5.34%
EPS beat(12)10
Avg EPS beat(12)4.37%
EPS beat(16)12
Avg EPS beat(16)5.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-1%
Max Revenue beat(2)0.48%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-1%
Max Revenue beat(4)2.19%
Revenue beat(8)6
Avg Revenue beat(8)1.46%
Revenue beat(12)8
Avg Revenue beat(12)1.33%
Revenue beat(16)10
Avg Revenue beat(16)0.64%
PT rev (1m)-0.08%
PT rev (3m)-0.36%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)4.37%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.27%
Valuation
Industry RankSector Rank
PE 29.64
Fwd PE 24.18
P/S 10.35
P/FCF 29.68
P/OCF 26.44
P/B 27.23
P/tB N/A
EV/EBITDA 21.75
EPS(TTM)15.45
EY3.37%
EPS(NY)18.94
Fwd EY4.14%
FCF(TTM)15.43
FCFY3.37%
OCF(TTM)17.32
OCFY3.78%
SpS44.23
BVpS16.82
TBVpS-28.91
PEG (NY)2.26
PEG (5Y)3.67
Graham Number76.4665 (-83.3%)
Profitability
Industry RankSector Rank
ROA 16.94%
ROE 83.33%
ROCE 31.83%
ROIC 24.73%
ROICexc 28.63%
ROICexgc 190.59%
OM 44.84%
PM (TTM) 31.69%
GM 74.43%
FCFM 34.89%
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 Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 2.13
Debt/FCF 2.53
Debt/EBITDA 1.59
Cap/Depr 68.71%
Cap/Sales 4.27%
Interest Coverage 250
Cash Conversion 76.71%
Profit Quality 110.1%
Current Ratio 1.16
Quick Ratio 1.16
Altman-Z N/A
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)19.4%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%13.05%
EPS Next Y13.13%
EPS Next 2Y12.56%
EPS Next 3Y11.81%
EPS Next 5Y11.31%
Revenue 1Y (TTM)8.95%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%8.06%
Revenue Next Year7.54%
Revenue Next 2Y7.68%
Revenue Next 3Y7.55%
Revenue Next 5Y6.85%
EBIT growth 1Y15.66%
EBIT growth 3Y20.13%
EBIT growth 5Y7.19%
EBIT Next Year23.29%
EBIT Next 3Y13.37%
EBIT Next 5Y10.66%
FCF growth 1Y34.53%
FCF growth 3Y29.31%
FCF growth 5Y4.74%
OCF growth 1Y33%
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.


Can you provide the profitability details for MOODY'S CORP?

MOODY'S CORP (MCO) has a profitability rating of 9 / 10.


How financially healthy is MOODY'S CORP?

The financial health rating of MOODY'S CORP (MCO) is 5 / 10.


Can you provide the expected EPS growth for MCO stock?

The Earnings per Share (EPS) of MOODY'S CORP (MCO) is expected to grow by 13.13% in the next year.