MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCO - US6153691059 - Common Stock
539.61 USD
+3.63 (+0.68%)
539.61 USD
0 (0%)
Taking everything into account, MCO scores 5 out of 10 in our fundamental rating. MCO was compared to 235 industry peers in the Capital Markets industry. While MCO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MCO is quite expensive at the moment. It does show a decent growth rate.
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.
- 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 94.89% of its industry peers.
- The Return On Equity of MCO (56.71%) is better than 98.72% of its industry peers.
- MCO has a better Return On Invested Capital (20.43%) than 97.02% 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 7.17%.
- 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
- With a decent Profit Margin value of 29.92%, MCO is doing good in the industry, outperforming 74.47% of the companies in the same industry.
- 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 78.72% of its industry peers.
- MCO's Operating Margin has been stable in the last couple of years.
- MCO has a Gross Margin of 73.75%. This is amongst the best in the industry. MCO outperforms 82.55% 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
- The number of shares outstanding for MCO has been reduced compared to 1 year ago.
- The number of shares outstanding for MCO has been reduced compared to 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.
- The Debt to FCF ratio of MCO (2.91) is better than 79.15% 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 has a Debt to Equity ratio of 1.76. This is in the lower half of the industry: MCO underperforms 74.47% 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
- MCO has a Current 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.
- The Current ratio of MCO (1.84) is better than 72.77% of its industry peers.
- A Quick Ratio of 1.84 indicates that MCO should not have too much problems paying its short term obligations.
- MCO's Quick ratio of 1.84 is fine compared to the rest of the industry. MCO outperforms 72.77% 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.
- MCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.53% yearly.
- 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 12.76% 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 2Y15.01%
EPS Next 3Y13.99%
EPS Next 5Y12.76%
Revenue Next Year8.22%
Revenue Next 2Y7.97%
Revenue Next 3Y7.97%
Revenue Next 5Y7.37%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 38.74, MCO can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, MCO is valued a bit more expensive than 74.47% of the companies in the same industry.
- MCO is valuated rather expensively when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 32.69, which means the current valuation is very expensive for MCO.
- 69.79% of the companies in the same industry are cheaper than MCO, based on the Price/Forward Earnings ratio.
- MCO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.74 | ||
| Fwd PE | 32.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MCO is valued a bit cheaper than the industry average as 67.66% of the companies are valued more expensively.
- MCO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.14 | ||
| EV/EBITDA | 26.7 |
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.
- MCO's earnings are expected to grow with 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.06
PEG (5Y)4.54
EPS Next 2Y15.01%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
- MCO has a yearly dividend return of 0.71%, which is pretty low.
- Compared to an average industry Dividend Yield of 6.19, MCO is paying slightly less dividend.
- With a Dividend Yield of 0.71, MCO pays less dividend than the S&P500 average, which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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 2Y15.01%
EPS Next 3Y13.99%
539.61
+3.63 (+0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-22 2025-10-22/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners79.21%
Inst Owner Change0.2%
Ins Owners0.06%
Ins Owner Change-0.46%
Market Cap96.27B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts76.55
Price Target555.07 (2.87%)
Short Float %1.53%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend3.42
Dividend Growth(5Y)11.37%
DP30.7%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0.39%
PT rev (3m)0.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.69%
EPS NY rev (1m)0%
EPS NY rev (3m)5.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.74 | ||
| Fwd PE | 32.69 | ||
| P/S | 12.83 | ||
| P/FCF | 40.14 | ||
| P/OCF | 35.43 | ||
| P/B | 24.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.7 |
EPS(TTM)13.93
EY2.58%
EPS(NY)16.51
Fwd EY3.06%
FCF(TTM)13.44
FCFY2.49%
OCF(TTM)15.23
OCFY2.82%
SpS42.05
BVpS22.18
TBVpS-24.8
PEG (NY)2.06
PEG (5Y)4.54
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 2Y15.01%
EPS Next 3Y13.99%
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 2Y7.97%
Revenue Next 3Y7.97%
Revenue Next 5Y7.37%
EBIT growth 1Y13.66%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year27.36%
EBIT Next 3Y14.96%
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.
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.
How profitable is MOODY'S CORP (MCO) stock?
MOODY'S CORP (MCO) has a profitability rating of 8 / 10.
What is the valuation of MOODY'S CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MOODY'S CORP (MCO) is 38.74 and the Price/Book (PB) ratio is 24.33.
Can you provide the dividend sustainability for MCO stock?
The dividend rating of MOODY'S CORP (MCO) is 4 / 10 and the dividend payout ratio is 30.7%.