MOODY'S CORP (MCO) Stock Fundamental Analysis

NYSE:MCO • US6153691059

446.08 USD
-3.21 (-0.71%)
Last: Feb 20, 2026, 02:26 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall MCO gets a fundamental rating of 5 out of 10. We evaluated MCO 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.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year MCO was profitable.
  • In the past year MCO had a positive cash flow from operations.
  • MCO had positive earnings in 4 of the past 5 years.
  • MCO had a positive operating cash flow in 4 of the past 5 years.
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 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • MCO has a better Return On Assets (14.56%) than 94.51% of its industry peers.
  • With an excellent Return On Equity value of 56.71%, MCO belongs to the best of the industry, outperforming 98.73% 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 96.62% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for MCO is significantly above the industry average of 7.29%.
  • The 3 year average ROIC (16.07%) for MCO is below the current ROIC(20.43%), indicating increased profibility in the last year.
Industry RankSector 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%
MCO Yearly ROA, ROE, ROICMCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 200 -200 -300

1.3 Margins

  • With a decent Profit Margin value of 29.92%, 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 43.81%, MCO is doing good in the industry, outperforming 78.48% of the companies in the same industry.
  • MCO's Operating Margin has been stable in the last couple of years.
  • MCO has a Gross Margin of 73.75%. This is amongst the best in the industry. MCO outperforms 81.43% 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 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%
MCO Yearly Profit, Operating, Gross MarginsMCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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4

2. Health

2.1 Basic Checks

  • There is no outstanding debt for MCO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
MCO Yearly Shares OutstandingMCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B

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.
  • MCO has a better Debt to FCF ratio (2.91) than 78.90% of its industry peers.
  • A Debt/Equity ratio of 1.76 is on the high side and indicates that MCO has dependencies on debt financing.
  • The Debt to Equity ratio of MCO (1.76) is worse than 75.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.76
Debt/FCF 2.91
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 0 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.84 indicates that MCO should not have too much problems paying its short term obligations.
  • MCO has a better Current ratio (1.84) than 72.15% 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 Quick ratio of 1.84. This is in the better half of the industry: MCO outperforms 72.15% of its industry peers.
Industry RankSector Rank
Current Ratio 1.84
Quick Ratio 1.84
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 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

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.
EPS 1Y (TTM)19.79%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%38.93%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%12.98%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.32% 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 7.28% on average per year.
EPS Next Y10.75%
EPS Next 2Y11.43%
EPS Next 3Y11.4%
EPS Next 5Y11.32%
Revenue Next Year7.71%
Revenue Next 2Y7.82%
Revenue Next 3Y7.42%
Revenue Next 5Y7.28%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 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 5 10 15 20

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2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 29.84, which means the current valuation is very expensive for MCO.
  • Based on the Price/Earnings ratio, MCO is valued a bit more expensive than the industry average as 73.84% of the companies are valued more cheaply.
  • The average S&P500 Price/Earnings ratio is at 27.09. MCO is around the same levels.
  • With a Price/Forward Earnings ratio of 26.94, MCO can be considered very expensive at the moment.
  • 65.82% of the companies in the same industry are cheaper than MCO, based on the Price/Forward Earnings ratio.
  • MCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 29.84
Fwd PE 26.94
MCO Price Earnings VS Forward Price EarningsMCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 68.35% of the companies in the same industry are more expensive than MCO, based on the Enterprise Value to EBITDA ratio.
  • MCO's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 33.19
EV/EBITDA 22.58
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)2.78
PEG (5Y)3.7
EPS Next 2Y11.43%
EPS Next 3Y11.4%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • MCO has a yearly dividend return of 0.91%, which is pretty low.
  • MCO's Dividend Yield is slightly below the industry average, which is at 6.04.
  • With a Dividend Yield of 0.91, MCO pays less dividend than the S&P500 average, which is at 1.85.
Industry RankSector Rank
Dividend Yield 0.91%

5.2 History

  • On average, the dividend of MCO grows each year by 11.37%, which is quite nice.
  • MCO has paid a dividend for at least 10 years, which is a reliable track record.
  • MCO has decreased its dividend recently.
Dividend Growth(5Y)11.37%
Div Incr Years1
Div Non Decr Years1
MCO Yearly Dividends per shareMCO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

  • MCO pays out 30.70% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of MCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP30.7%
EPS Next 2Y11.43%
EPS Next 3Y11.4%
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 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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MOODY'S CORP

NYSE:MCO (2/20/2026, 2:26:56 PM)

446.08

-3.21 (-0.71%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-18
Earnings (Next)04-20
Inst Owners79.21%
Inst Owner Change-0.64%
Ins Owners0.06%
Ins Owner Change-0.05%
Market Cap79.58B
Revenue(TTM)N/A
Net Income(TTM)2.24B
Analysts77.24
Price Target575.18 (28.94%)
Short Float %1.37%
Short Ratio2
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly Dividend3.42
Dividend Growth(5Y)11.37%
DP30.7%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)3.62%
PT rev (3m)4.34%
EPS NQ rev (1m)0.9%
EPS NQ rev (3m)2.04%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.18%
Valuation
Industry RankSector Rank
PE 29.84
Fwd PE 26.94
P/S 10.61
P/FCF 33.19
P/OCF 29.29
P/B 20.11
P/tB N/A
EV/EBITDA 22.58
EPS(TTM)14.95
EY3.35%
EPS(NY)16.56
Fwd EY3.71%
FCF(TTM)13.44
FCFY3.01%
OCF(TTM)15.23
OCFY3.41%
SpS42.05
BVpS22.18
TBVpS-24.8
PEG (NY)2.78
PEG (5Y)3.7
Graham Number86.38
Profitability
Industry RankSector 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 RankSector 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)19.79%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%38.93%
EPS Next Y10.75%
EPS Next 2Y11.43%
EPS Next 3Y11.4%
EPS Next 5Y11.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%12.98%
Revenue Next Year7.71%
Revenue Next 2Y7.82%
Revenue Next 3Y7.42%
Revenue Next 5Y7.28%
EBIT growth 1Y13.66%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year27.71%
EBIT Next 3Y15.32%
EBIT Next 5Y12.1%
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.


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.


How profitable is MOODY'S CORP (MCO) stock?

MOODY'S CORP (MCO) has a profitability rating of 8 / 10.


What is the valuation of MOODY'S CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for MOODY'S CORP (MCO) is 29.84 and the Price/Book (PB) ratio is 20.11.


Can you provide the dividend sustainability for MCO stock?

The dividend rating of MOODY'S CORP (MCO) is 3 / 10 and the dividend payout ratio is 30.7%.