MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCO - US6153691059 - Common Stock
479.65 USD
+5.13 (+1.08%)
479.6 USD
-0.05 (-0.01%)
Taking everything into account, MCO scores 5 out of 10 in our fundamental rating. MCO was compared to 237 industry peers in the Capital Markets industry. While MCO has a great profitability rating, 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.
In the past year MCO had a positive cash flow from operations.
Each year in the past 5 years MCO has been profitable.
MCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MCO's Return On Assets of 14.56% is amongst the best of the industry. MCO outperforms 95.78% of its industry peers.
MCO has a Return On Equity of 56.71%. This is amongst the best in the industry. MCO outperforms 98.73% of its industry peers.
With an excellent Return On Invested Capital value of 20.43%, MCO belongs to the best of the industry, outperforming 97.05% 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 3 year average ROIC (16.07%) for MCO is below the current ROIC(20.43%), indicating increased profibility in the last year.
| 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 75.53% 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 has a Operating Margin of 43.81%. This is in the better half of the industry: MCO outperforms 79.32% of its industry peers.
MCO's Operating Margin has been stable in the last couple of years.
MCO has a better Gross Margin (73.75%) than 81.43% 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
MCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MCO has about the same debt to assets ratio.
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.
With a decent Debt to FCF ratio value of 2.91, MCO is doing good in the industry, outperforming 79.32% 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 Debt to Equity ratio of 1.76. This is in the lower half of the industry: MCO underperforms 75.95% 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.
Looking at the Current ratio, with a value of 1.84, MCO is in the better half of the industry, outperforming 71.31% of the companies in the same industry.
A Quick Ratio of 1.84 indicates that MCO should not have too much problems paying its short term obligations.
The Quick ratio of MCO (1.84) is better than 71.31% 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.
Measured over the past years, MCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.53% on average per year.
MCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.77%.
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.
The Revenue is expected to grow by 7.37% on average over the next years.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MCO is valuated quite expensively with a Price/Earnings ratio of 34.43.
Compared to the rest of the industry, the Price/Earnings ratio of MCO indicates a slightly more expensive valuation: MCO is more expensive than 75.95% of the companies listed in the same industry.
MCO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.47.
Based on the Price/Forward Earnings ratio of 29.12, the valuation of MCO can be described as expensive.
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 70.04% of the companies listed in the same industry.
MCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.43 | ||
| Fwd PE | 29.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCO is valued a bit cheaper than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MCO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.88 | ||
| EV/EBITDA | 24.15 |
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 13.90% in the coming years.
PEG (NY)1.85
PEG (5Y)4.04
EPS Next 2Y14.89%
EPS Next 3Y13.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, MCO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.60, MCO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.41, MCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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
30.70% of the earnings are spent on dividend by MCO. This is a low number and sustainable payout ratio.
The dividend of MCO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP30.7%
EPS Next 2Y14.89%
EPS Next 3Y13.9%
479.65
+5.13 (+1.08%)
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 Cap86.05B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts76.77
Price Target554.75 (15.66%)
Short Float %1.32%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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)0.75%
PT rev (3m)0.77%
EPS NQ rev (1m)9.17%
EPS NQ rev (3m)9.51%
EPS NY rev (1m)3.81%
EPS NY rev (3m)5.35%
Revenue NQ rev (1m)1.96%
Revenue NQ rev (3m)2.18%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.43 | ||
| Fwd PE | 29.12 | ||
| P/S | 11.47 | ||
| P/FCF | 35.88 | ||
| P/OCF | 31.67 | ||
| P/B | 21.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.15 |
EPS(TTM)13.93
EY2.9%
EPS(NY)16.47
Fwd EY3.43%
FCF(TTM)13.37
FCFY2.79%
OCF(TTM)15.14
OCFY3.16%
SpS41.81
BVpS22.06
TBVpS-24.66
PEG (NY)1.85
PEG (5Y)4.04
Graham Number83.15
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 34.43 and the Price/Book (PB) ratio is 21.75.
Can you provide the financial health for MCO stock?
The financial health rating of MOODY'S CORP (MCO) is 4 / 10.