MOODY'S CORP (MCO)
US6153691059 - Common Stock
Taking everything into account, MCO scores 6 out of 10 in our fundamental rating. MCO was compared to 219 industry peers in the Capital Markets industry. While MCO has a great profitability rating, there are some minor concerns on its financial health. MCO is valued quite expensive, but it does show an excellent growth. These ratings could make MCO a good candidate for growth investing.
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.
MCO had positive earnings in each of the past 5 years.
In the past 5 years MCO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.70%, MCO belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
MCO has a Return On Equity of 51.29%. This is amongst the best in the industry. MCO outperforms 99.07% of its industry peers.
The Return On Invested Capital of MCO (18.99%) is better than 96.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MCO is significantly above the industry average of 6.63%.
The 3 year average ROIC (16.02%) for MCO is below the current ROIC(18.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.7% | ||
| ROE | 51.29% | ||
| ROIC | 18.99% |
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
The Profit Margin of MCO (29.05%) is better than 70.56% of its industry peers.
MCO's Profit Margin has declined in the last couple of years.
MCO has a Operating Margin of 41.92%. This is in the better half of the industry: MCO outperforms 71.50% of its industry peers.
In the last couple of years the Operating Margin of MCO has declined.
The Gross Margin of MCO (72.90%) is better than 74.77% 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 | 41.92% | ||
| PM (TTM) | 29.05% | ||
| GM | 72.9% |
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%
2. Health
2.1 Basic Checks
Compared to 1 year ago, MCO has less shares outstanding
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
An Altman-Z score of 6.95 indicates that MCO is not in any danger for bankruptcy at the moment.
MCO has a better Altman-Z score (6.95) than 92.52% of its industry peers.
The Debt to FCF ratio of MCO is 3.26, which is a good value as it means it would take MCO, 3.26 years of fcf income to pay off all of its debts.
MCO has a better Debt to FCF ratio (3.26) than 72.90% 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.
With a Debt to Equity ratio value of 1.76, MCO is not doing good in the industry: 73.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 6.95 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.67 indicates that MCO should not have too much problems paying its short term obligations.
MCO has a better Current ratio (1.67) than 65.42% of its industry peers.
MCO has a Quick Ratio of 1.67. This is a normal value and indicates that MCO is financially healthy and should not expect problems in meeting its short term obligations.
MCO has a better Quick ratio (1.67) than 65.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
MCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.29%, which is quite impressive.
Measured over the past 5 years, MCO shows a small growth in Earnings Per Share. The EPS has been growing by 6.07% on average per year.
MCO shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.43%.
The Revenue has been growing slightly by 5.90% on average over the past years.
EPS 1Y (TTM)29.29%
EPS 3Y-0.76%
EPS 5Y6.07%
EPS Q2Q%32.1%
Revenue 1Y (TTM)20.43%
Revenue growth 3Y3.27%
Revenue growth 5Y5.9%
Sales Q2Q%23.17%
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 12.93% yearly.
The Revenue is expected to grow by 8.82% on average over the next years. This is quite good.
EPS Next Y23.57%
EPS Next 2Y16.49%
EPS Next 3Y15.78%
EPS Next 5Y12.93%
Revenue Next Year18.14%
Revenue Next 2Y12.23%
Revenue Next 3Y11.14%
Revenue Next 5Y8.82%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 39.24, the valuation of MCO can be described as expensive.
MCO's Price/Earnings ratio is a bit more expensive when compared to the industry. MCO is more expensive than 78.04% of the companies in the same industry.
When comparing the Price/Earnings ratio of MCO to the average of the S&P500 Index (27.09), we can say MCO is valued slightly more expensively.
A Price/Forward Earnings ratio of 35.16 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 76.64% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.45. MCO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 35.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCO is valued a bit cheaper than 62.15% of the companies in the same industry.
MCO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.85 | ||
| EV/EBITDA | 27.09 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 15.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.66
PEG (5Y)6.46
EPS Next 2Y16.49%
EPS Next 3Y15.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, MCO is not a good candidate for dividend investing.
MCO's Dividend Yield is slightly below the industry average, which is at 9.54.
Compared to an average S&P500 Dividend Yield of 2.30, MCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
On average, the dividend of MCO grows each year by 11.82%, which is quite nice.
MCO has paid a dividend for at least 10 years, which is a reliable track record.
MCO has decreased its dividend recently.
Dividend Growth(5Y)11.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
30.20% of the earnings are spent on dividend by MCO. This is a low number and 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.
DP30.2%
EPS Next 2Y16.49%
EPS Next 3Y15.78%
MOODY'S CORP
NYSE:MCO (1/2/2025, 8:04:00 PM)
After market: 472.84 0 (0%)472.84
-0.53 (-0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.78%
Inst Owner Change-1.51%
Ins Owners0.08%
Ins Owner Change-0.55%
Market Cap85.68B
Analysts74.62
Price Target514.6 (8.83%)
Short Float %0.95%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Dividend Growth(5Y)11.82%
DP30.2%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.45%
Min EPS beat(2)7.68%
Max EPS beat(2)11.21%
EPS beat(4)3
Avg EPS beat(4)5.6%
Min EPS beat(4)-6.41%
Max EPS beat(4)11.21%
EPS beat(8)7
Avg EPS beat(8)9.22%
EPS beat(12)7
Avg EPS beat(12)4.46%
EPS beat(16)10
Avg EPS beat(16)6.99%
Revenue beat(2)2
Avg Revenue beat(2)4.86%
Min Revenue beat(2)4.31%
Max Revenue beat(2)5.41%
Revenue beat(4)3
Avg Revenue beat(4)3.13%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)5.41%
Revenue beat(8)6
Avg Revenue beat(8)2.38%
Revenue beat(12)8
Avg Revenue beat(12)0.8%
Revenue beat(16)12
Avg Revenue beat(16)1.99%
PT rev (1m)0.89%
PT rev (3m)4.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.92%
EPS NY rev (1m)0%
EPS NY rev (3m)6.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 35.16 | ||
| P/S | 12.42 | ||
| P/FCF | 36.85 | ||
| P/OCF | 32.44 | ||
| P/B | 21.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.09 |
EPS(TTM)12.05
EY2.55%
EPS(NY)13.45
Fwd EY2.84%
FCF(TTM)12.83
FCFY2.71%
OCF(TTM)14.58
OCFY3.08%
SpS38.06
BVpS21.55
TBVpS-23.25
PEG (NY)1.66
PEG (5Y)6.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.7% | ||
| ROE | 51.29% | ||
| ROCE | 23.07% | ||
| ROIC | 18.99% | ||
| ROICexc | 25.54% | ||
| ROICexgc | 198.2% | ||
| OM | 41.92% | ||
| PM (TTM) | 29.05% | ||
| GM | 72.9% | ||
| FCFM | 33.72% |
ROA(3y)11.88%
ROA(5y)12.77%
ROE(3y)61.39%
ROE(5y)105.97%
ROIC(3y)16.02%
ROIC(5y)17.66%
ROICexc(3y)19.16%
ROICexc(5y)22.19%
ROICexgc(3y)101.24%
ROICexgc(5y)125.41%
ROCE(3y)19.46%
ROCE(5y)21.45%
ROICexcg growth 3Y-19.34%
ROICexcg growth 5Y-30.92%
ROICexc growth 3Y-11.82%
ROICexc growth 5Y-8.18%
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%
F-Score8
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 3.26 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 76.14% | ||
| Cap/Sales | 4.58% | ||
| Interest Coverage | 10.14 | ||
| Cash Conversion | 79.89% | ||
| Profit Quality | 116.08% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 6.95 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)70.75%
Cap/Depr(5y)58.71%
Cap/Sales(3y)4%
Cap/Sales(5y)3.07%
Profit Quality(3y)95.98%
Profit Quality(5y)103.16%
High Growth Momentum
Growth
EPS 1Y (TTM)29.29%
EPS 3Y-0.76%
EPS 5Y6.07%
EPS Q2Q%32.1%
EPS Next Y23.57%
EPS Next 2Y16.49%
EPS Next 3Y15.78%
EPS Next 5Y12.93%
Revenue 1Y (TTM)20.43%
Revenue growth 3Y3.27%
Revenue growth 5Y5.9%
Sales Q2Q%23.17%
Revenue Next Year18.14%
Revenue Next 2Y12.23%
Revenue Next 3Y11.14%
Revenue Next 5Y8.82%
EBIT growth 1Y39.12%
EBIT growth 3Y-3.13%
EBIT growth 5Y2.93%
EBIT Next Year39.37%
EBIT Next 3Y18.14%
EBIT Next 5Y13.08%
FCF growth 1Y105.75%
FCF growth 3Y-2.73%
FCF growth 5Y6.52%
OCF growth 1Y89.18%
OCF growth 3Y0.08%
OCF growth 5Y8.04%