MOODY'S CORP (MCO) Fundamental Analysis & Valuation

NYSE:MCO • US6153691059

Current stock price

438 USD
-6.1 (-1.37%)
At close:
438 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

  • MCO had positive earnings in the past year.
  • 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 better Return On Assets (15.53%) than 94.98% of its industry peers.
  • MCO has a better Return On Equity (60.66%) than 99.16% of its industry peers.
  • With an excellent Return On Invested Capital value of 20.93%, MCO belongs to the best of the industry, outperforming 96.65% of the companies in the same industry.
  • MCO had an Average Return On Invested Capital over the past 3 years of 18.20%. This is significantly above the industry average of 7.24%.
  • 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

  • MCO has a Profit Margin of 31.86%. This is in the better half of the industry: MCO outperforms 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.
  • Looking at the Operating Margin, with a value of 44.86%, MCO belongs to the top of the industry, outperforming 82.85% 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 has a Gross Margin of 74.44%. This is amongst the best in the industry. MCO outperforms 82.01% of its industry peers.
  • MCO's Gross Margin has been stable in the last couple of years.
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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6

2. MCO Health Analysis

2.1 Basic Checks

  • MCO has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, MCO has less shares outstanding
  • The debt/assets ratio for MCO has been reduced compared to a year ago.
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 6.98 indicates that MCO is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of MCO (6.98) is better than 90.38% 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.
  • MCO's Debt to FCF ratio of 2.72 is fine compared to the rest of the industry. MCO outperforms 79.92% of its industry peers.
  • A Debt/Equity ratio of 1.73 is on the high side and indicates that MCO has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.73, MCO is doing worse than 74.06% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.73
Debt/FCF 2.72
Altman-Z 6.98
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.
  • Looking at the Current ratio, with a value of 1.74, MCO is in the better half of 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.
  • With a decent Quick ratio value of 1.74, MCO is doing good in the industry, outperforming 71.55% of the companies in the same industry.
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

  • The Earnings Per Share has grown by an nice 19.79% over the past year.
  • Measured over the past years, MCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.07% on average per year.
  • MCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.89%.
  • MCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.52% yearly.
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

  • Based on estimates for the next years, MCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.77% on average per year.
  • Based on estimates for the next years, MCO will show a small growth in Revenue. The Revenue will grow by 6.55% on average per year.
EPS Next Y13.1%
EPS Next 2Y12.42%
EPS Next 3Y11.55%
EPS Next 5Y10.77%
Revenue Next Year7.8%
Revenue Next 2Y7.78%
Revenue Next 3Y7.64%
Revenue Next 5Y6.55%

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.
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

  • MCO is valuated quite expensively with a Price/Earnings ratio of 29.30.
  • Based on the Price/Earnings ratio, MCO is valued a bit more expensive than 75.31% of the companies in the same industry.
  • MCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 25.91, which means the current valuation is very expensive for 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 66.11% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, MCO is valued at the same level.
Industry RankSector Rank
PE 29.3
Fwd PE 25.91
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

  • Based on the Enterprise Value to EBITDA ratio, MCO is valued a bit cheaper than the industry average as 67.78% of the companies are valued more expensively.
  • 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 RankSector Rank
P/FCF 30.28
EV/EBITDA 21.19
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)2.24
PEG (5Y)3.63
EPS Next 2Y12.42%
EPS Next 3Y11.55%

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3

5. MCO Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.97%, MCO is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 6.90, 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 0.97%

5.2 History

  • On average, the dividend of MCO grows each year by 11.82%, which is quite nice.
  • 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

  • 28.51% of the earnings are spent on dividend by MCO. This is a low number and 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 (4/7/2026, 5:05:00 PM)

After market: 438 0 (0%)

438

-6.1 (-1.37%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-18
Earnings (Next)04-22
Inst Owners79.32%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change2.33%
Market Cap77.96B
Revenue(TTM)7.72B
Net Income(TTM)2.46B
Analysts80
Price Target562.52 (28.43%)
Short Float %1.56%
Short Ratio1.59
Dividend
Industry RankSector Rank
Dividend Yield 0.97%
Yearly Dividend3.92
Dividend Growth(5Y)11.82%
DP28.51%
Div Incr Years2
Div Non Decr Years2
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)0.23%
PT rev (3m)1.34%
EPS NQ rev (1m)-1.3%
EPS NQ rev (3m)3.03%
EPS NY rev (1m)0%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.22%
Valuation
Industry RankSector Rank
PE 29.3
Fwd PE 25.91
P/S 10.1
P/FCF 30.28
P/OCF 26.87
P/B 19.23
P/tB N/A
EV/EBITDA 21.19
EPS(TTM)14.95
EY3.41%
EPS(NY)16.91
Fwd EY3.86%
FCF(TTM)14.47
FCFY3.3%
OCF(TTM)16.3
OCFY3.72%
SpS43.36
BVpS22.78
TBVpS-23.48
PEG (NY)2.24
PEG (5Y)3.63
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 6.98
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 Year7.8%
Revenue Next 2Y7.78%
Revenue Next 3Y7.64%
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.


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 6 / 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 13.1% in the next year.