MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - NYSE:MCO - US6153691059 - Common Stock
480.3 USD
+1.33 (+0.28%)
481.5 USD
+1.2 (+0.25%)
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. While showing a medium growth rate, MCO is valued expensive at the moment.
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.
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 has a better Return On Assets (14.56%) than 95.36% of its industry peers.
MCO has a better Return On Equity (56.71%) than 98.31% of its industry peers.
The Return On Invested Capital of MCO (20.43%) is better than 97.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MCO is significantly above the industry average of 7.59%.
The last Return On Invested Capital (20.43%) for MCO is above the 3 year average (16.07%), which is a sign of increasing profitability.
| 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 Profit Margin of 29.92%. This is in the better half of the industry: MCO outperforms 75.11% of its industry peers.
MCO's Profit Margin has been stable in the last couple of years.
MCO has a better Operating Margin (43.81%) than 78.06% of its industry peers.
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 73.75%. This is amongst the best in the industry. MCO outperforms 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
Compared to 5 years ago, MCO has less shares outstanding
MCO has about the same debt/assets ratio as last year.
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's Debt to FCF ratio of 2.91 is amongst the best of the industry. MCO outperforms 82.28% 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.
MCO's Debt to Equity ratio of 1.76 is on the low side compared to the rest of the industry. MCO is outperformed by 77.64% 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
A Current Ratio of 1.84 indicates that MCO should not have too much problems paying its short term obligations.
MCO has a Current ratio of 1.84. This is in the better half of the industry: MCO outperforms 69.20% of its industry peers.
MCO has a Quick 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.
MCO has a Quick ratio of 1.84. This is in the better half of the industry: MCO outperforms 69.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
MCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.60%, which is quite good.
The Earnings Per Share has been growing by 8.53% on average over the past years. This is quite good.
MCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.77%.
The Revenue has been growing slightly by 7.98% on average over the past years.
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
The Earnings Per Share is expected to grow by 12.02% on average over the next years. This is quite good.
MCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.09% yearly.
EPS Next Y14.21%
EPS Next 2Y13.1%
EPS Next 3Y12.78%
EPS Next 5Y12.02%
Revenue Next Year6.79%
Revenue Next 2Y7.32%
Revenue Next 3Y7.55%
Revenue Next 5Y7.09%
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
The Price/Earnings ratio is 34.48, 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 74.68% of the companies are valued more cheaply.
MCO is valuated rather expensively when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 30.09, the valuation of MCO can be described as expensive.
Based on the Price/Forward Earnings ratio, MCO is valued a bit more expensive than 70.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, MCO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.48 | ||
| Fwd PE | 30.09 |
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 66.67% of the companies listed in the same industry.
MCO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.93 | ||
| EV/EBITDA | 24.18 |
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.
A more expensive valuation may be justified as MCO's earnings are expected to grow with 12.78% in the coming years.
PEG (NY)2.43
PEG (5Y)4.04
EPS Next 2Y13.1%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, MCO is not a good candidate for dividend investing.
MCO's Dividend Yield is slightly below the industry average, which is at 8.40.
Compared to an average S&P500 Dividend Yield of 2.37, MCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
On average, the dividend of MCO grows each year by 11.37%, which is quite nice.
MCO has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MCO decreased 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 2Y13.1%
EPS Next 3Y12.78%
480.3
+1.33 (+0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.06%
Inst Owner Change-1.36%
Ins Owners0.06%
Ins Owner Change-0.53%
Market Cap86.17B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts74.48
Price Target551.27 (14.78%)
Short Float %1.15%
Short Ratio2.19
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)0.14%
PT rev (3m)4.86%
EPS NQ rev (1m)7.07%
EPS NQ rev (3m)7.2%
EPS NY rev (1m)1.39%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)1.91%
Revenue NQ rev (3m)2.08%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.48 | ||
| Fwd PE | 30.09 | ||
| P/S | 11.49 | ||
| P/FCF | 35.93 | ||
| P/OCF | 31.71 | ||
| P/B | 21.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.18 |
EPS(TTM)13.93
EY2.9%
EPS(NY)15.96
Fwd EY3.32%
FCF(TTM)13.37
FCFY2.78%
OCF(TTM)15.14
OCFY3.15%
SpS41.81
BVpS22.06
TBVpS-24.66
PEG (NY)2.43
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 Y14.21%
EPS Next 2Y13.1%
EPS Next 3Y12.78%
EPS Next 5Y12.02%
Revenue 1Y (TTM)8.77%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%10.7%
Revenue Next Year6.79%
Revenue Next 2Y7.32%
Revenue Next 3Y7.55%
Revenue Next 5Y7.09%
EBIT growth 1Y13.66%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year21.3%
EBIT Next 3Y13.49%
EBIT Next 5Y11.25%
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 34.48 and the Price/Book (PB) ratio is 21.78.
Can you provide the financial health for MCO stock?
The financial health rating of MOODY'S CORP (MCO) is 5 / 10.