MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCO - US6153691059 - Common Stock
479.99 USD
-6.38 (-1.31%)
479.99 USD
0 (0%)
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. 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.
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's Return On Assets of 14.56% is amongst the best of the industry. MCO outperforms 94.94% 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.
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 6.99%.
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.
The Operating Margin of MCO (43.81%) is better than 78.90% of its industry peers.
MCO's Operating Margin has been stable in the last couple of years.
The Gross Margin of MCO (73.75%) is better 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
MCO has less shares outstanding than it did 1 year ago.
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.
MCO's Debt to FCF ratio of 2.91 is fine compared to the rest of the industry. MCO outperforms 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.
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 76.37% 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.
With a decent Current ratio value of 1.84, MCO is doing good in the industry, outperforming 70.89% 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.
MCO has a better Quick ratio (1.84) than 70.89% 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.
The Earnings Per Share has been growing by 8.53% on average over the past years. This is quite good.
Looking at the last year, MCO shows a quite strong growth in Revenue. The Revenue has grown by 8.77% in the last year.
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
The Earnings Per Share is expected to grow by 12.76% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.37% on average over the next years.
EPS Next Y18.78%
EPS Next 2Y14.96%
EPS Next 3Y13.93%
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
A Price/Earnings ratio of 34.46 indicates a quite expensive valuation of MCO.
MCO's Price/Earnings ratio is a bit more expensive when compared to the industry. MCO is more expensive than 74.68% of the companies in the same industry.
MCO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.59.
A Price/Forward Earnings ratio of 29.10 indicates a quite expensive valuation of MCO.
Based on the Price/Forward Earnings ratio, MCO is valued a bit more expensive than the industry average as 70.04% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, MCO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.46 | ||
| Fwd PE | 29.1 |
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 67.09% of the companies listed 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 | 35.71 | ||
| EV/EBITDA | 24.04 |
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.
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 13.93% in the coming years.
PEG (NY)1.83
PEG (5Y)4.04
EPS Next 2Y14.96%
EPS Next 3Y13.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, MCO is not a good candidate for dividend investing.
MCO's Dividend Yield is slightly below the industry average, which is at 8.31.
With a Dividend Yield of 0.77, MCO pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
MCO pays out 30.70% of its income as dividend. This is a sustainable payout ratio.
MCO's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP30.7%
EPS Next 2Y14.96%
EPS Next 3Y13.93%
479.99
-6.38 (-1.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.22%
Inst Owner Change-0.44%
Ins Owners0.06%
Ins Owner Change-0.5%
Market Cap85.63B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts76
Price Target552.89 (15.19%)
Short Float %1.2%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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)0.29%
PT rev (3m)0.43%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)9.69%
EPS NY rev (1m)0.18%
EPS NY rev (3m)5.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.46 | ||
| Fwd PE | 29.1 | ||
| P/S | 11.42 | ||
| P/FCF | 35.71 | ||
| P/OCF | 31.52 | ||
| P/B | 21.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.04 |
EPS(TTM)13.93
EY2.9%
EPS(NY)16.49
Fwd EY3.44%
FCF(TTM)13.44
FCFY2.8%
OCF(TTM)15.23
OCFY3.17%
SpS42.05
BVpS22.18
TBVpS-24.8
PEG (NY)1.83
PEG (5Y)4.04
Graham Number83.38
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 Y18.78%
EPS Next 2Y14.96%
EPS Next 3Y13.93%
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 Year26.85%
EBIT Next 3Y14.84%
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 34.46 and the Price/Book (PB) ratio is 21.64.
Can you provide the financial health for MCO stock?
The financial health rating of MOODY'S CORP (MCO) is 4 / 10.