MOODY'S CORP (MCO) Fundamental Analysis & Valuation

NYSE:MCO • US6153691059

Current stock price

460.11 USD
+2.12 (+0.46%)
At close:
461 USD
+0.89 (+0.19%)
After Hours:

This MCO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. MCO Profitability Analysis

1.1 Basic Checks

  • In the past year MCO was profitable.
  • MCO had a positive operating cash flow in the past year.
  • MCO had positive earnings in each of the past 5 years.
  • MCO had a positive operating cash flow in each 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 2025 1B 2B 3B

1.2 Ratios

  • With an excellent Return On Assets value of 16.94%, MCO belongs to the best of the industry, outperforming 92.05% of the companies in the same industry.
  • The Return On Equity of MCO (83.33%) is better than 99.16% of its industry peers.
  • The Return On Invested Capital of MCO (24.73%) is better than 98.33% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MCO is significantly above the industry average of 7.30%.
  • The last Return On Invested Capital (24.73%) for MCO is above the 3 year average (18.20%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 16.94%
ROE 83.33%
ROIC 24.73%
ROA(3y)13.27%
ROA(5y)12.89%
ROE(3y)55.61%
ROE(5y)60.51%
ROIC(3y)18.2%
ROIC(5y)17.14%
MCO Yearly ROA, ROE, ROICMCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 200 -200 -300

1.3 Margins

  • The Profit Margin of MCO (31.69%) is better than 78.24% of its industry peers.
  • In the last couple of years the Profit Margin of MCO has remained more or less at the same level.
  • With an excellent Operating Margin value of 44.84%, MCO belongs to the best of the industry, outperforming 82.85% of the companies in the same industry.
  • In the last couple of years the Operating Margin of MCO has remained more or less at the same level.
  • The Gross Margin of MCO (74.43%) is better than 81.59% of its industry peers.
  • MCO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 44.84%
PM (TTM) 31.69%
GM 74.43%
OM growth 3Y7.09%
OM growth 5Y-0.31%
PM growth 3Y8.23%
PM growth 5Y-0.76%
GM growth 3Y1.83%
GM growth 5Y0.52%
MCO Yearly Profit, Operating, Gross MarginsMCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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5

2. MCO Health Analysis

2.1 Basic Checks

  • The number of shares outstanding for MCO has been reduced compared to 1 year ago.
  • Compared to 5 years ago, MCO has less shares outstanding
  • MCO has a better debt/assets ratio than last year.
MCO Yearly Shares OutstandingMCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 5B 10B 15B

2.2 Solvency

  • MCO has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as MCO would need 2.53 years to pay back of all of its debts.
  • MCO has a better Debt to FCF ratio (2.53) than 80.75% of its industry peers.
  • MCO has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of MCO (2.13) is worse than 79.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.13
Debt/FCF 2.53
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 2025 0 2B 4B 6B

2.3 Liquidity

  • MCO has a Current Ratio of 1.16. This is a normal value and indicates that MCO is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.16, MCO is in line with its industry, outperforming 51.46% of the companies in the same industry.
  • MCO has a Quick Ratio of 1.16. This is a normal value and indicates that MCO is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of MCO (1.16) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 1.16
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 2025 1B 2B 3B 4B 5B

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5

3. MCO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 19.40% over the past year.
  • The Earnings Per Share has been growing by 8.07% 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 8.95%.
  • Measured over the past years, MCO shows a small growth in Revenue. The Revenue has been growing by 7.52% on average per year.
EPS 1Y (TTM)19.4%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%13.05%
Revenue 1Y (TTM)8.95%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%8.06%

3.2 Future

  • MCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.31% yearly.
  • The Revenue is expected to grow by 6.85% on average over the next years.
EPS Next Y13.13%
EPS Next 2Y12.56%
EPS Next 3Y11.81%
EPS Next 5Y11.31%
Revenue Next Year7.54%
Revenue Next 2Y7.68%
Revenue Next 3Y7.55%
Revenue Next 5Y6.85%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 2030 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 2030 5 10 15 20 25

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2

4. MCO Valuation Analysis

4.1 Price/Earnings Ratio

  • MCO is valuated quite expensively with a Price/Earnings ratio of 29.78.
  • MCO's Price/Earnings ratio is a bit more expensive when compared to the industry. MCO is more expensive than 74.48% of the companies in the same industry.
  • MCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 24.29, the valuation of MCO can be described as rather expensive.
  • 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 65.69% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.68, MCO is valued at the same level.
Industry RankSector Rank
PE 29.78
Fwd PE 24.29
MCO Price Earnings VS Forward Price EarningsMCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • MCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MCO is cheaper than 63.18% 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 RankSector Rank
P/FCF 29.81
EV/EBITDA 21.72
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 an expensive valuation of the company.
  • The excellent profitability rating of MCO may justify a higher PE ratio.
PEG (NY)2.27
PEG (5Y)3.69
EPS Next 2Y12.56%
EPS Next 3Y11.81%

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

3

5. MCO Dividend Analysis

5.1 Amount

  • MCO has a yearly dividend return of 0.90%, which is pretty low.
  • Compared to an average industry Dividend Yield of 6.53, MCO is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.82, MCO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.9%

5.2 History

  • On average, the dividend of MCO grows each year by 11.82%, 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 in the last 3 years.
Dividend Growth(5Y)11.82%
Div Incr Years2
Div Non Decr Years2
MCO Yearly Dividends per shareMCO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 27.70% of the earnings are spent on dividend by MCO. This is a low number and sustainable payout ratio.
  • The dividend of MCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.7%
EPS Next 2Y12.56%
EPS Next 3Y11.81%
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 2025 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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MCO Fundamentals: All Metrics, Ratios and Statistics

MOODY'S CORP

NYSE:MCO (4/29/2026, 8:04:00 PM)

After market: 461 +0.89 (+0.19%)

460.11

+2.12 (+0.46%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Industry Strength19.25
Industry Growth57.14
Earnings (Last)04-22
Earnings (Next)07-21
Inst Owners79.23%
Inst Owner Change-0.3%
Ins Owners0.08%
Ins Owner Change2.34%
Market Cap81.90B
Revenue(TTM)7.87B
Net Income(TTM)2.50B
Analysts80
Price Target550.18 (19.58%)
Short Float %2.33%
Short Ratio2.66
Dividend
Industry RankSector Rank
Dividend Yield 0.9%
Yearly Dividend3.92
Dividend Growth(5Y)11.82%
DP27.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.52%
Min EPS beat(2)1.61%
Max EPS beat(2)5.43%
EPS beat(4)4
Avg EPS beat(4)4.12%
Min EPS beat(4)1.61%
Max EPS beat(4)5.56%
EPS beat(8)7
Avg EPS beat(8)5.34%
EPS beat(12)10
Avg EPS beat(12)4.37%
EPS beat(16)12
Avg EPS beat(16)5.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-1%
Max Revenue beat(2)0.48%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-1%
Max Revenue beat(4)2.19%
Revenue beat(8)6
Avg Revenue beat(8)1.46%
Revenue beat(12)8
Avg Revenue beat(12)1.33%
Revenue beat(16)10
Avg Revenue beat(16)0.64%
PT rev (1m)-0.08%
PT rev (3m)-0.36%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)4.37%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.27%
Valuation
Industry RankSector Rank
PE 29.78
Fwd PE 24.29
P/S 10.4
P/FCF 29.81
P/OCF 26.56
P/B 27.35
P/tB N/A
EV/EBITDA 21.72
EPS(TTM)15.45
EY3.36%
EPS(NY)18.94
Fwd EY4.12%
FCF(TTM)15.43
FCFY3.35%
OCF(TTM)17.32
OCFY3.76%
SpS44.23
BVpS16.82
TBVpS-28.91
PEG (NY)2.27
PEG (5Y)3.69
Graham Number76.4665 (-83.38%)
Profitability
Industry RankSector Rank
ROA 16.94%
ROE 83.33%
ROCE 31.83%
ROIC 24.73%
ROICexc 28.63%
ROICexgc 190.59%
OM 44.84%
PM (TTM) 31.69%
GM 74.43%
FCFM 34.89%
ROA(3y)13.27%
ROA(5y)12.89%
ROE(3y)55.61%
ROE(5y)60.51%
ROIC(3y)18.2%
ROIC(5y)17.14%
ROICexc(3y)23.05%
ROICexc(5y)21.2%
ROICexgc(3y)144.74%
ROICexgc(5y)126.2%
ROCE(3y)23.43%
ROCE(5y)22.06%
ROICexgc growth 3Y18.23%
ROICexgc growth 5Y-6.22%
ROICexc growth 3Y19.02%
ROICexc growth 5Y0.38%
OM growth 3Y7.09%
OM growth 5Y-0.31%
PM growth 3Y8.23%
PM growth 5Y-0.76%
GM growth 3Y1.83%
GM growth 5Y0.52%
F-Score8
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 2.13
Debt/FCF 2.53
Debt/EBITDA 1.59
Cap/Depr 68.71%
Cap/Sales 4.27%
Interest Coverage 250
Cash Conversion 76.71%
Profit Quality 110.1%
Current Ratio 1.16
Quick Ratio 1.16
Altman-Z N/A
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)71.37%
Cap/Depr(5y)70.74%
Cap/Sales(3y)4.43%
Cap/Sales(5y)4.14%
Profit Quality(3y)114.73%
Profit Quality(5y)103.03%
High Growth Momentum
Growth
EPS 1Y (TTM)19.4%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%13.05%
EPS Next Y13.13%
EPS Next 2Y12.56%
EPS Next 3Y11.81%
EPS Next 5Y11.31%
Revenue 1Y (TTM)8.95%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%8.06%
Revenue Next Year7.54%
Revenue Next 2Y7.68%
Revenue Next 3Y7.55%
Revenue Next 5Y6.85%
EBIT growth 1Y15.66%
EBIT growth 3Y20.13%
EBIT growth 5Y7.19%
EBIT Next Year23.29%
EBIT Next 3Y13.37%
EBIT Next 5Y10.66%
FCF growth 1Y34.53%
FCF growth 3Y29.31%
FCF growth 5Y4.74%
OCF growth 1Y33%
OCF growth 3Y25.32%
OCF growth 5Y6.21%

MOODY'S CORP / MCO Fundamental Analysis FAQ

What is the ChartMill fundamental rating of MOODY'S CORP (MCO) stock?

ChartMill assigns a fundamental rating of 6 / 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.


Can you provide the profitability details for MOODY'S CORP?

MOODY'S CORP (MCO) has a profitability rating of 9 / 10.


How financially healthy is MOODY'S CORP?

The financial health rating of MOODY'S CORP (MCO) is 5 / 10.


Can you provide the expected EPS growth for MCO stock?

The Earnings per Share (EPS) of MOODY'S CORP (MCO) is expected to grow by 13.13% in the next year.