MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - NYSE:MCO - US6153691059 - Common Stock
473.36 USD
+3.2 (+0.68%)
Taking everything into account, MCO scores 5 out of 10 in our fundamental rating. MCO was compared to 237 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 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.
Each year in the past 5 years MCO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MCO (14.56%) is better than 95.78% of its industry peers.
MCO has a Return On Equity of 56.71%. This is amongst the best in the industry. MCO outperforms 98.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.43%, MCO belongs to the top of the industry, outperforming 97.05% 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 7.11%.
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 75.53% of the companies in the same industry.
MCO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 43.81%, MCO is in the better half of the industry, outperforming 79.32% 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.
With an excellent Gross Margin value of 73.75%, MCO belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
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
Compared to 1 year ago, MCO has less shares outstanding
The number of shares outstanding for MCO has been reduced compared to 5 years ago.
MCO has about the same debt/assets ratio as last year.
2.2 Solvency
MCO has a debt to FCF ratio of 2.91. This is a good value and a sign of high solvency as MCO would need 2.91 years to pay back of all of its debts.
The Debt to FCF ratio of MCO (2.91) is better than 80.17% 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: 75.95% of the companies in the same industry are doing better.
| 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.
Looking at the Current ratio, with a value of 1.84, MCO is in the better half of the industry, outperforming 70.04% of the companies in the same industry.
A Quick Ratio of 1.84 indicates that MCO should not have too much problems paying its short term obligations.
MCO has a better Quick ratio (1.84) than 70.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
MCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.60%, which is quite good.
The Earnings Per Share has been growing by 8.53% on average over the past years. This is quite good.
The Revenue has grown by 8.77% in the past year. This is quite good.
Measured over the past years, MCO shows a small growth in Revenue. The Revenue has been growing by 7.98% on average per year.
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 Y18.57%
EPS Next 2Y14.89%
EPS Next 3Y13.9%
EPS Next 5Y12.76%
Revenue Next Year8.22%
Revenue Next 2Y7.89%
Revenue Next 3Y7.9%
Revenue Next 5Y7.37%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 33.98, which means the current valuation is very expensive for MCO.
75.95% of the companies in the same industry are cheaper than MCO, based on the Price/Earnings ratio.
MCO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.46.
The Price/Forward Earnings ratio is 28.74, which means the current valuation is very expensive for 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 70.04% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.39, MCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 28.74 |
4.2 Price Multiples
MCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MCO is cheaper than 67.09% 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 | 35.41 | ||
| EV/EBITDA | 23.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MCO does not grow enough to justify the current Price/Earnings ratio.
MCO has an outstanding profitability rating, which may justify a higher PE ratio.
MCO's earnings are expected to grow with 13.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.83
PEG (5Y)3.99
EPS Next 2Y14.89%
EPS Next 3Y13.9%
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 8.42.
With a Dividend Yield of 0.77, MCO pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
30.70% of the earnings are spent on dividend by MCO. This is a low number and 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 2Y14.89%
EPS Next 3Y13.9%
NYSE:MCO (11/19/2025, 2:58:21 PM)
473.36
+3.2 (+0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.06%
Inst Owner Change-0.53%
Ins Owners0.06%
Ins Owner Change-1.83%
Market Cap84.92B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts76.77
Price Target551.27 (16.46%)
Short Float %1.32%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend3.42
Dividend Growth(5Y)11.37%
DP30.7%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0.12%
PT rev (3m)0.4%
EPS NQ rev (1m)9.37%
EPS NQ rev (3m)9.51%
EPS NY rev (1m)5.26%
EPS NY rev (3m)6.83%
Revenue NQ rev (1m)2.02%
Revenue NQ rev (3m)2.18%
Revenue NY rev (1m)2.12%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 28.74 | ||
| P/S | 11.32 | ||
| P/FCF | 35.41 | ||
| P/OCF | 31.26 | ||
| P/B | 21.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.7 |
EPS(TTM)13.93
EY2.94%
EPS(NY)16.47
Fwd EY3.48%
FCF(TTM)13.37
FCFY2.82%
OCF(TTM)15.14
OCFY3.2%
SpS41.81
BVpS22.06
TBVpS-24.66
PEG (NY)1.83
PEG (5Y)3.99
Graham Number83.15
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 Y18.57%
EPS Next 2Y14.89%
EPS Next 3Y13.9%
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 2Y7.89%
Revenue Next 3Y7.9%
Revenue Next 5Y7.37%
EBIT growth 1Y13.66%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year21.3%
EBIT Next 3Y13.49%
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.
What is the valuation status of MOODY'S CORP (MCO) stock?
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.
Can you provide the PE and PB ratios for MCO stock?
The Price/Earnings (PE) ratio for MOODY'S CORP (MCO) is 33.98 and the Price/Book (PB) ratio is 21.46.
Can you provide the financial health for MCO stock?
The financial health rating of MOODY'S CORP (MCO) is 5 / 10.