MOODY'S CORP (MCO) Stock Fundamental Analysis
NYSE:MCO - New York Stock Exchange, Inc. - US6153691059 - Common Stock - Currency: USD
MCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 232 industry peers in the Capital Markets industry. While MCO has a great profitability rating, 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
MCO had positive earnings in the past year.
MCO had a positive operating cash flow in the past year.
In the past 5 years MCO has always been profitable.
Each year in the past 5 years MCO had a positive operating cash flow.
1.2 Ratios
MCO has a better Return On Assets (13.95%) than 95.26% of its industry peers.
With an excellent Return On Equity value of 56.92%, MCO belongs to the best of the industry, outperforming 98.28% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.12%, MCO belongs to the top of the industry, outperforming 96.12% 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 7.88%.
The last Return On Invested Capital (20.12%) for MCO is above the 3 year average (16.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.95% | ||
| ROE | 56.92% | ||
| ROIC | 20.12% |
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's Profit Margin of 29.14% is fine compared to the rest of the industry. MCO outperforms 71.98% 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 (42.24%) is better than 74.57% 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 72.75%. This is in the better half of the industry: MCO outperforms 76.72% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.24% | ||
| PM (TTM) | 29.14% | ||
| GM | 72.75% |
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.
The debt/assets ratio for MCO has remained at the same level compared to a year ago.
2.2 Solvency
MCO has an Altman-Z score of 7.39. This indicates that MCO is financially healthy and has little risk of bankruptcy at the moment.
MCO has a better Altman-Z score (7.39) than 92.24% of its industry peers.
MCO has a debt to FCF ratio of 2.73. This is a good value and a sign of high solvency as MCO would need 2.73 years to pay back of all of its debts.
MCO's Debt to FCF ratio of 2.73 is amongst the best of the industry. MCO outperforms 80.60% of its industry peers.
A Debt/Equity ratio of 1.84 is on the high side and indicates that MCO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.84, MCO is doing worse than 77.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 2.73 | ||
| Altman-Z | 7.39 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.56 indicates that MCO should not have too much problems paying its short term obligations.
MCO's Current ratio of 1.56 is fine compared to the rest of the industry. MCO outperforms 62.93% of its industry peers.
MCO has a Quick Ratio of 1.56. This is a normal value and indicates that MCO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.56, MCO is doing good in the industry, outperforming 62.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
MCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.75%, which is quite impressive.
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 15.95%.
The Revenue has been growing slightly by 7.98% on average over the past years.
EPS 1Y (TTM)25.75%
EPS 3Y0.49%
EPS 5Y8.53%
EPS Q2Q%13.65%
Revenue 1Y (TTM)15.95%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%7.73%
3.2 Future
Based on estimates for the next years, MCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.88% on average per year.
MCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.47% yearly.
EPS Next Y10.71%
EPS Next 2Y11.83%
EPS Next 3Y12.41%
EPS Next 5Y10.88%
Revenue Next Year4.44%
Revenue Next 2Y6.28%
Revenue Next 3Y6.84%
Revenue Next 5Y6.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 37.16, the valuation of MCO can be described as expensive.
Based on the Price/Earnings ratio, MCO is valued a bit more expensive than the industry average as 75.43% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.55, MCO is valued a bit more expensive.
A Price/Forward Earnings ratio of 30.81 indicates a quite expensive valuation of MCO.
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 71.12% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.40. MCO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.16 | ||
| Fwd PE | 30.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCO is valued a bit cheaper than 65.52% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.66 | ||
| EV/EBITDA | 26.19 |
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 12.41% in the coming years.
PEG (NY)3.47
PEG (5Y)4.36
EPS Next 2Y11.83%
EPS Next 3Y12.41%
5. Dividend
5.1 Amount
MCO has a yearly dividend return of 0.77%, which is pretty low.
MCO's Dividend Yield is slightly below the industry average, which is at 8.22.
With a Dividend Yield of 0.77, MCO pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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.
MCO has decreased its dividend recently.
Dividend Growth(5Y)11.37%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
31.34% of the earnings are spent on dividend by MCO. This is a low number and sustainable payout ratio.
MCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.34%
EPS Next 2Y11.83%
EPS Next 3Y12.41%
NYSE:MCO (6/12/2025, 3:23:21 PM)
480.89
-2.65 (-0.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners78.4%
Inst Owner Change0.9%
Ins Owners0.08%
Ins Owner Change0.91%
Market Cap86.51B
Analysts75.33
Price Target514.55 (7%)
Short Float %1.97%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend3.42
Dividend Growth(5Y)11.37%
DP31.34%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.66%
Min EPS beat(2)0%
Max EPS beat(2)7.32%
EPS beat(4)3
Avg EPS beat(4)6.55%
Min EPS beat(4)0%
Max EPS beat(4)11.21%
EPS beat(8)6
Avg EPS beat(8)4.5%
EPS beat(12)8
Avg EPS beat(12)5.47%
EPS beat(16)10
Avg EPS beat(16)5.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)1.37%
Revenue beat(4)3
Avg Revenue beat(4)2.07%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)5.41%
Revenue beat(8)5
Avg Revenue beat(8)1.58%
Revenue beat(12)7
Avg Revenue beat(12)0.57%
Revenue beat(16)11
Avg Revenue beat(16)1%
PT rev (1m)-0.27%
PT rev (3m)-6.96%
EPS NQ rev (1m)-2.3%
EPS NQ rev (3m)-12%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-2.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.77%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.16 | ||
| Fwd PE | 30.81 | ||
| P/S | 11.97 | ||
| P/FCF | 34.66 | ||
| P/OCF | 30.68 | ||
| P/B | 23.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.19 |
EPS(TTM)12.94
EY2.69%
EPS(NY)15.61
Fwd EY3.25%
FCF(TTM)13.87
FCFY2.89%
OCF(TTM)15.68
OCFY3.26%
SpS40.17
BVpS20.57
TBVpS-25.1
PEG (NY)3.47
PEG (5Y)4.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.95% | ||
| ROE | 56.92% | ||
| ROCE | 25.06% | ||
| ROIC | 20.12% | ||
| ROICexc | 24.56% | ||
| ROICexgc | 139.02% | ||
| OM | 42.24% | ||
| PM (TTM) | 29.14% | ||
| GM | 72.75% | ||
| FCFM | 34.54% |
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%
ROICexcg growth 3Y21.88%
ROICexcg 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 2.73 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 72.97% | ||
| Cap/Sales | 4.48% | ||
| Interest Coverage | 11.26 | ||
| Cash Conversion | 80.66% | ||
| Profit Quality | 118.52% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 7.39 |
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)25.75%
EPS 3Y0.49%
EPS 5Y8.53%
EPS Q2Q%13.65%
EPS Next Y10.71%
EPS Next 2Y11.83%
EPS Next 3Y12.41%
EPS Next 5Y10.88%
Revenue 1Y (TTM)15.95%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%7.73%
Revenue Next Year4.44%
Revenue Next 2Y6.28%
Revenue Next 3Y6.84%
Revenue Next 5Y6.47%
EBIT growth 1Y23.96%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year17.6%
EBIT Next 3Y12.45%
EBIT Next 5Y10.13%
FCF growth 1Y89.81%
FCF growth 3Y10.55%
FCF growth 5Y9.44%
OCF growth 1Y74.94%
OCF growth 3Y12.28%
OCF growth 5Y11.12%