MOODY'S CORP (MCO)

US6153691059 - Common Stock

381.21  -0.96 (-0.25%)

After market: 381.21 0 (0%)

Fundamental Rating

5

Taking everything into account, MCO scores 5 out of 10 in our fundamental rating. MCO was compared to 210 industry peers in the Capital Markets industry. MCO has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, MCO is valued expensive at the moment.



7

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.
In the past 5 years MCO has always been profitable.
MCO had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

MCO has a Return On Assets of 10.99%. This is amongst the best in the industry. MCO outperforms 88.94% of its industry peers.
MCO has a Return On Equity of 48.43%. This is amongst the best in the industry. MCO outperforms 97.12% of its industry peers.
The Return On Invested Capital of MCO (15.11%) is better than 90.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MCO is significantly above the industry average of 8.34%.
Industry RankSector Rank
ROA 10.99%
ROE 48.43%
ROIC 15.11%
ROA(3y)11.88%
ROA(5y)12.77%
ROE(3y)61.39%
ROE(5y)105.97%
ROIC(3y)16.02%
ROIC(5y)17.66%

1.3 Margins

Looking at the Profit Margin, with a value of 27.16%, MCO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of MCO has declined.
Looking at the Operating Margin, with a value of 37.59%, MCO is in the better half of the industry, outperforming 62.02% of the companies in the same industry.
In the last couple of years the Operating Margin of MCO has declined.
Looking at the Gross Margin, with a value of 71.48%, MCO is in the better half of the industry, outperforming 72.60% of the companies in the same industry.
MCO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 37.59%
PM (TTM) 27.16%
GM 71.48%
OM growth 3Y-6.21%
OM growth 5Y-2.8%
PM growth 3Y-6.38%
PM growth 5Y-1.62%
GM growth 3Y-0.49%
GM growth 5Y-0.13%

6

2. Health

2.1 Basic Checks

MCO has less shares outstanding than it did 1 year ago.
MCO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MCO has been reduced compared to a year ago.

2.2 Solvency

MCO has an Altman-Z score of 6.16. This indicates that MCO is financially healthy and has little risk of bankruptcy at the moment.
MCO has a better Altman-Z score (6.16) than 90.38% of its industry peers.
MCO has a debt to FCF ratio of 3.72. This is a good value and a sign of high solvency as MCO would need 3.72 years to pay back of all of its debts.
The Debt to FCF ratio of MCO (3.72) is better than 71.63% of its industry peers.
A Debt/Equity ratio of 2.11 is on the high side and indicates that MCO has dependencies on debt financing.
With a Debt to Equity ratio value of 2.11, MCO is not doing good in the industry: 77.40% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.11
Debt/FCF 3.72
Altman-Z 6.16
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

A Current Ratio of 1.74 indicates that MCO should not have too much problems paying its short term obligations.
The Current ratio of MCO (1.74) is better than 64.42% of its industry peers.
A Quick Ratio of 1.74 indicates that MCO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.74, MCO is doing good in the industry, outperforming 64.90% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.74
Quick Ratio 1.74

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.77% over the past year.
The Earnings Per Share has been growing slightly by 6.07% on average over the past years.
MCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.19%.
MCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.90% yearly.
EPS 1Y (TTM)15.77%
EPS 3Y-0.76%
EPS 5Y6.07%
EPS growth Q2Q36.87%
Revenue 1Y (TTM)8.19%
Revenue growth 3Y3.27%
Revenue growth 5Y5.9%
Revenue growth Q2Q14.73%

3.2 Future

The Earnings Per Share is expected to grow by 13.36% 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 7.63% on average per year.
EPS Next Y7.77%
EPS Next 2Y11.92%
EPS Next 3Y13.29%
EPS Next 5Y13.36%
Revenue Next Year10.05%
Revenue Next 2Y9.8%
Revenue Next 3Y9.62%
Revenue Next 5Y7.63%

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 accelerating.

2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 38.47, the valuation of MCO can be described as expensive.
MCO's Price/Earnings ratio is rather expensive when compared to the industry. MCO is more expensive than 81.73% of the companies in the same industry.
When comparing the Price/Earnings ratio of MCO to the average of the S&P500 Index (25.25), we can say MCO is valued expensively.
The Price/Forward Earnings ratio is 35.69, which means the current valuation is very expensive for MCO.
74.52% of the companies in the same industry are cheaper than MCO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, MCO is valued quite expensively.
Industry RankSector Rank
PE 38.47
Fwd PE 35.69

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as MCO.
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 37.02
EV/EBITDA 28.62

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 decent 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 13.29% in the coming years.
PEG (NY)4.95
PEG (5Y)6.33
EPS Next 2Y11.92%
EPS Next 3Y13.29%

4

5. Dividend

5.1 Amount

With a yearly dividend of 0.91%, MCO is not a good candidate for dividend investing.
MCO's Dividend Yield is slightly below the industry average, which is at 7.77.
With a Dividend Yield of 0.91, MCO pays less dividend than the S&P500 average, which is at 2.45.
Industry RankSector Rank
Dividend Yield 0.91%

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.
Dividend Growth(5Y)11.82%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

MCO pays out 35.10% of its income as dividend. This is a 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.
DP35.1%
EPS Next 2Y11.92%
EPS Next 3Y13.29%

MOODY'S CORP

NYSE:MCO (4/24/2024, 7:15:40 PM)

After market: 381.21 0 (0%)

381.21

-0.96 (-0.25%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap69.59B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 38.47
Fwd PE 35.69
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.95
PEG (5Y)6.33
Profitability
Industry RankSector Rank
ROA 10.99%
ROE 48.43%
ROCE
ROIC
ROICexc
ROICexgc
OM 37.59%
PM (TTM) 27.16%
GM 71.48%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 2.11
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.74
Quick Ratio 1.74
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.77%
EPS 3Y-0.76%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.19%
Revenue growth 3Y3.27%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y