MOODY'S CORP (MCO) Fundamental Analysis & Valuation
NYSE:MCO • US6153691059
Current stock price
447.62 USD
+9.62 (+2.2%)
At close:
447.62 USD
0 (0%)
After Hours:
This MCO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- 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 15.53%, MCO belongs to the best of the industry, outperforming 94.98% of the companies in the same industry.
- MCO has a Return On Equity of 60.66%. This is amongst the best in the industry. MCO outperforms 99.16% of its industry peers.
- MCO's Return On Invested Capital of 20.93% is amongst the best of the industry. MCO outperforms 96.65% of its industry peers.
- MCO had an Average Return On Invested Capital over the past 3 years of 18.20%. This is significantly above the industry average of 7.24%.
- The last Return On Invested Capital (20.93%) for MCO is above the 3 year average (18.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.53% | ||
| ROE | 60.66% | ||
| ROIC | 20.93% |
ROA(3y)13.27%
ROA(5y)12.89%
ROE(3y)55.61%
ROE(5y)60.51%
ROIC(3y)18.2%
ROIC(5y)17.14%
1.3 Margins
- With a decent Profit Margin value of 31.86%, MCO is doing good in the industry, outperforming 78.24% of the companies in the same industry.
- MCO's Profit Margin has been stable in the last couple of years.
- The Operating Margin of MCO (44.86%) is better than 82.85% of its industry peers.
- 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 (74.44%) is better than 82.01% of its industry peers.
- MCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.86% | ||
| PM (TTM) | 31.86% | ||
| GM | 74.44% |
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%
2. MCO Health Analysis
2.1 Basic Checks
- Compared to 1 year ago, MCO has less shares outstanding
- Compared to 5 years ago, MCO has less shares outstanding
- Compared to 1 year ago, MCO has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.93 indicates that MCO is not in any danger for bankruptcy at the moment.
- The Altman-Z score of MCO (6.93) is better than 90.38% of its industry peers.
- MCO has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as MCO would need 2.72 years to pay back of all of its debts.
- MCO has a better Debt to FCF ratio (2.72) than 79.92% of its industry peers.
- MCO has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
- MCO's Debt to Equity ratio of 1.73 is on the low side compared to the rest of the industry. MCO is outperformed by 74.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 6.93 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 1.74 indicates that MCO should not have too much problems paying its short term obligations.
- MCO has a better Current ratio (1.74) than 71.55% of its industry peers.
- MCO has a Quick Ratio of 1.74. 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 Quick ratio, with a value of 1.74, MCO is in the better half of the industry, outperforming 71.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.74 |
3. MCO Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 19.79% 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 8.07% yearly.
- MCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.89%.
- MCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.52% yearly.
EPS 1Y (TTM)19.79%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%38.93%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%12.98%
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 10.77% on average per year.
- Based on estimates for the next years, MCO will show a small growth in Revenue. The Revenue will grow by 6.55% on average per year.
EPS Next Y13.1%
EPS Next 2Y12.42%
EPS Next 3Y11.55%
EPS Next 5Y10.77%
Revenue Next Year7.8%
Revenue Next 2Y7.78%
Revenue Next 3Y7.64%
Revenue Next 5Y6.55%
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. MCO Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 29.94, 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 75.31% of the companies in the same industry.
- MCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.91.
- A Price/Forward Earnings ratio of 26.47 indicates a quite expensive valuation of MCO.
- MCO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MCO is more expensive than 66.11% of the companies in the same industry.
- MCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 26.47 |
4.2 Price Multiples
- MCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MCO is cheaper than 68.62% 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 | 30.94 | ||
| EV/EBITDA | 20.91 |
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.
PEG (NY)2.29
PEG (5Y)3.71
EPS Next 2Y12.42%
EPS Next 3Y11.55%
5. MCO Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.97%, MCO is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.89, MCO is paying slightly less dividend.
- With a Dividend Yield of 0.97, MCO pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 in the last 3 years.
Dividend Growth(5Y)11.82%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- MCO pays out 28.51% of its income as dividend. This is a sustainable payout ratio.
- The dividend of MCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.51%
EPS Next 2Y12.42%
EPS Next 3Y11.55%
MCO Fundamentals: All Metrics, Ratios and Statistics
447.62
+9.62 (+2.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-18 2026-02-18/bmo
Earnings (Next)04-22 2026-04-22/bmo
Inst Owners79.32%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change2.33%
Market Cap79.68B
Revenue(TTM)7.72B
Net Income(TTM)2.46B
Analysts80
Price Target562.52 (25.67%)
Short Float %1.56%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend3.92
Dividend Growth(5Y)11.82%
DP28.51%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-02 2026-03-02 (1.03)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.5%
Min EPS beat(2)5.43%
Max EPS beat(2)5.56%
EPS beat(4)4
Avg EPS beat(4)5.55%
Min EPS beat(4)3.89%
Max EPS beat(4)7.32%
EPS beat(8)7
Avg EPS beat(8)6.37%
EPS beat(12)10
Avg EPS beat(12)7.14%
EPS beat(16)11
Avg EPS beat(16)4.95%
Revenue beat(2)2
Avg Revenue beat(2)1.33%
Min Revenue beat(2)0.48%
Max Revenue beat(2)2.19%
Revenue beat(4)4
Avg Revenue beat(4)1.44%
Min Revenue beat(4)0.48%
Max Revenue beat(4)2.19%
Revenue beat(8)7
Avg Revenue beat(8)2.1%
Revenue beat(12)9
Avg Revenue beat(12)1.69%
Revenue beat(16)11
Avg Revenue beat(16)0.71%
PT rev (1m)0.23%
PT rev (3m)1.34%
EPS NQ rev (1m)-1.3%
EPS NQ rev (3m)3.03%
EPS NY rev (1m)0%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 26.47 | ||
| P/S | 10.32 | ||
| P/FCF | 30.94 | ||
| P/OCF | 27.47 | ||
| P/B | 19.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.91 |
EPS(TTM)14.95
EY3.34%
EPS(NY)16.91
Fwd EY3.78%
FCF(TTM)14.47
FCFY3.23%
OCF(TTM)16.3
OCFY3.64%
SpS43.36
BVpS22.78
TBVpS-23.48
PEG (NY)2.29
PEG (5Y)3.71
Graham Number87.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.53% | ||
| ROE | 60.66% | ||
| ROCE | 26.94% | ||
| ROIC | 20.93% | ||
| ROICexc | 25.86% | ||
| ROICexgc | 124.13% | ||
| OM | 44.86% | ||
| PM (TTM) | 31.86% | ||
| GM | 74.44% | ||
| FCFM | 33.36% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 67.92% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 14.73 | ||
| Cash Conversion | 73.59% | ||
| Profit Quality | 104.72% | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 6.93 |
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)19.79%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%38.93%
EPS Next Y13.1%
EPS Next 2Y12.42%
EPS Next 3Y11.55%
EPS Next 5Y10.77%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%12.98%
Revenue Next Year7.8%
Revenue Next 2Y7.78%
Revenue Next 3Y7.64%
Revenue Next 5Y6.55%
EBIT growth 1Y16.29%
EBIT growth 3Y20.13%
EBIT growth 5Y7.19%
EBIT Next Year23.68%
EBIT Next 3Y13.4%
EBIT Next 5Y10.35%
FCF growth 1Y2.14%
FCF growth 3Y29.31%
FCF growth 5Y4.74%
OCF growth 1Y2.22%
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 6 / 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 13.1% in the next year.