MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - NYSE:MCO - US6153691059 - Common Stock
511.77 USD
+3.77 (+0.74%)
511.77 USD
0 (0%)
MCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
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.
Each year in the past 5 years MCO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.77%, MCO belongs to the best of the industry, outperforming 94.51% of the companies in the same industry.
MCO has a Return On Equity of 53.99%. This is amongst the best in the industry. MCO outperforms 98.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.43%, MCO belongs to the top of the industry, outperforming 96.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MCO is significantly above the industry average of 7.61%.
The 3 year average ROIC (16.07%) for MCO is below the current ROIC(19.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.77% | ||
| ROE | 53.99% | ||
| ROIC | 19.43% |
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
MCO has a Profit Margin of 29.18%. This is in the better half of the industry: MCO outperforms 73.84% of its industry peers.
In the last couple of years the Profit Margin of MCO has remained more or less at the same level.
MCO's Operating Margin of 42.51% is fine compared to the rest of the industry. MCO outperforms 73.42% of its industry peers.
In the last couple of years the Operating Margin of MCO has remained more or less at the same level.
MCO has a Gross Margin of 72.78%. This is in the better half of the industry: MCO outperforms 79.32% 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 | 42.51% | ||
| PM (TTM) | 29.18% | ||
| GM | 72.78% |
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.
MCO has less shares outstanding than it did 5 years ago.
MCO has about the same debt/assets ratio as last year.
2.2 Solvency
The Debt to FCF ratio of MCO is 2.94, which is a good value as it means it would take MCO, 2.94 years of fcf income to pay off all of its debts.
MCO has a Debt to FCF ratio of 2.94. This is amongst the best in the industry. MCO outperforms 81.01% of its industry peers.
A Debt/Equity ratio of 1.76 is on the high side and indicates that MCO has dependencies on debt financing.
The Debt to Equity ratio of MCO (1.76) is worse than 77.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MCO has a Current Ratio of 1.75. 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 1.75, MCO is in the better half of the industry, outperforming 68.35% of the companies in the same industry.
MCO has a Quick Ratio of 1.75. 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 Quick ratio of 1.75. This is in the better half of the industry: MCO outperforms 68.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.30% over the past year.
Measured over the past years, MCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.53% on average per year.
Looking at the last year, MCO shows a quite strong growth in Revenue. The Revenue has grown by 11.47% in the last year.
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)17.3%
EPS 3Y0.49%
EPS 5Y8.53%
EPS Q2Q%8.54%
Revenue 1Y (TTM)11.47%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%4.46%
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 11.44% on average per year.
MCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.78% yearly.
EPS Next Y12.55%
EPS Next 2Y12.38%
EPS Next 3Y12.48%
EPS Next 5Y11.44%
Revenue Next Year5.8%
Revenue Next 2Y6.91%
Revenue Next 3Y7.26%
Revenue Next 5Y6.78%
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
A Price/Earnings ratio of 38.71 indicates a quite expensive valuation of MCO.
75.53% 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 27.20.
A Price/Forward Earnings ratio of 32.47 indicates a quite expensive valuation of MCO.
Based on the Price/Forward Earnings ratio, MCO is valued a bit more expensive than 72.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MCO to the average of the S&P500 Index (22.70), we can say MCO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.71 | ||
| Fwd PE | 32.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCO indicates a somewhat cheap valuation: MCO is cheaper than 65.40% of the companies listed 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 | 38.72 | ||
| EV/EBITDA | 27.07 |
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.
A more expensive valuation may be justified as MCO's earnings are expected to grow with 12.48% in the coming years.
PEG (NY)3.08
PEG (5Y)4.54
EPS Next 2Y12.38%
EPS Next 3Y12.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, MCO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.96, MCO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, MCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of MCO is nicely growing with an annual growth rate of 11.37%!
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)11.37%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
31.75% 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.
DP31.75%
EPS Next 2Y12.38%
EPS Next 3Y12.48%
511.77
+3.77 (+0.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.9%
Inst Owner Change-1.86%
Ins Owners0.07%
Ins Owner Change-0.54%
Market Cap91.81B
Analysts74.48
Price Target550.5 (7.57%)
Short Float %1.37%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend3.42
Dividend Growth(5Y)11.37%
DP31.75%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.6%
Min EPS beat(2)3.89%
Max EPS beat(2)7.32%
EPS beat(4)3
Avg EPS beat(4)5.6%
Min EPS beat(4)0%
Max EPS beat(4)11.21%
EPS beat(8)6
Avg EPS beat(8)4.79%
EPS beat(12)9
Avg EPS beat(12)6.17%
EPS beat(16)10
Avg EPS beat(16)4.36%
Revenue beat(2)2
Avg Revenue beat(2)1.54%
Min Revenue beat(2)1.37%
Max Revenue beat(2)1.71%
Revenue beat(4)3
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)5.41%
Revenue beat(8)5
Avg Revenue beat(8)1.56%
Revenue beat(12)8
Avg Revenue beat(12)1.05%
Revenue beat(16)11
Avg Revenue beat(16)0.88%
PT rev (1m)0.26%
PT rev (3m)6.99%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)1.41%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.71 | ||
| Fwd PE | 32.47 | ||
| P/S | 12.56 | ||
| P/FCF | 38.72 | ||
| P/OCF | 34.3 | ||
| P/B | 23.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.07 |
EPS(TTM)13.22
EY2.58%
EPS(NY)15.76
Fwd EY3.08%
FCF(TTM)13.22
FCFY2.58%
OCF(TTM)14.92
OCFY2.92%
SpS40.73
BVpS22.01
TBVpS-25.2
PEG (NY)3.08
PEG (5Y)4.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.77% | ||
| ROE | 53.99% | ||
| ROCE | 24.19% | ||
| ROIC | 19.43% | ||
| ROICexc | 23.64% | ||
| ROICexgc | 119.92% | ||
| OM | 42.51% | ||
| PM (TTM) | 29.18% | ||
| GM | 72.78% | ||
| FCFM | 32.45% |
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%
ROICexcg growth 3Y21.88%
ROICexcg 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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 67.4% | ||
| Cap/Sales | 4.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.2% | ||
| Profit Quality | 111.21% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | N/A |
F-Score7
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)17.3%
EPS 3Y0.49%
EPS 5Y8.53%
EPS Q2Q%8.54%
EPS Next Y12.55%
EPS Next 2Y12.38%
EPS Next 3Y12.48%
EPS Next 5Y11.44%
Revenue 1Y (TTM)11.47%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%4.46%
Revenue Next Year5.8%
Revenue Next 2Y6.91%
Revenue Next 3Y7.26%
Revenue Next 5Y6.78%
EBIT growth 1Y15.29%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year20.38%
EBIT Next 3Y13.25%
EBIT Next 5Y10.72%
FCF growth 1Y43.87%
FCF growth 3Y10.55%
FCF growth 5Y9.44%
OCF growth 1Y39.06%
OCF growth 3Y12.28%
OCF growth 5Y11.12%