MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - NYSE:MCO - US6153691059 - Common Stock
478.97 USD
+7.27 (+1.54%)
478.97 USD
0 (0%)
MCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 235 industry peers in the Capital Markets industry. MCO has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, MCO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MCO had positive earnings in the past year.
In the past year MCO had a positive cash flow from operations.
In the past 5 years MCO has always been profitable.
In the past 5 years MCO always reported a positive cash flow from operatings.
1.2 Ratios
MCO's Return On Assets of 14.56% is amongst the best of the industry. MCO outperforms 95.32% of its industry peers.
With an excellent Return On Equity value of 56.71%, MCO belongs to the best of the industry, outperforming 98.30% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.43%, MCO belongs to the best of the industry, outperforming 97.45% of the companies in the same industry.
MCO had an Average Return On Invested Capital over the past 3 years of 16.07%. This is significantly above the industry average of 7.61%.
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
MCO has a Profit Margin of 29.92%. This is in the better half of the industry: MCO outperforms 75.32% of its industry peers.
In the last couple of years the Profit Margin of MCO has remained more or less at the same level.
Looking at the Operating Margin, with a value of 43.81%, MCO is in the better half of the industry, outperforming 77.87% 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.
Looking at the Gross Margin, with a value of 73.75%, MCO belongs to the top of the industry, outperforming 81.28% 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
MCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MCO has been reduced compared to 5 years ago.
The debt/assets ratio for MCO has remained at the same level compared to a year ago.
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.
With an excellent Debt to FCF ratio value of 2.91, MCO belongs to the best of the industry, outperforming 82.13% of the companies in the same industry.
A Debt/Equity ratio of 1.76 is on the high side and indicates that MCO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.76, MCO is doing worse than 77.45% of the companies in the same industry.
| 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.
MCO has a Current ratio of 1.84. This is in the better half of the industry: MCO outperforms 69.79% 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 has a better Quick ratio (1.84) than 70.21% 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%.
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
MCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.02% yearly.
Based on estimates for the next years, MCO will show a small growth in Revenue. The Revenue will grow by 7.09% on average per year.
EPS Next Y14.21%
EPS Next 2Y13.1%
EPS Next 3Y12.78%
EPS Next 5Y12.02%
Revenue Next Year6.79%
Revenue Next 2Y7.32%
Revenue Next 3Y7.55%
Revenue Next 5Y7.09%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.38 indicates a quite expensive valuation of MCO.
Based on the Price/Earnings ratio, MCO is valued a bit more expensive than 74.04% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. MCO is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 30.00, 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 70.64% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. MCO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.38 | ||
| Fwd PE | 30 |
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 66.81% of the companies listed 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 | 35.83 | ||
| EV/EBITDA | 23.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MCO may justify a higher PE ratio.
MCO's earnings are expected to grow with 12.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.42
PEG (5Y)4.03
EPS Next 2Y13.1%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, MCO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.34, MCO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.31, MCO's dividend is way lower than the S&P500 average.
| 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 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
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 2Y13.1%
EPS Next 3Y12.78%
478.97
+7.27 (+1.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.06%
Inst Owner Change-0.08%
Ins Owners0.06%
Ins Owner Change-0.54%
Market Cap85.93B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts74.48
Price Target551.27 (15.09%)
Short Float %1.15%
Short Ratio2.19
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)0.02%
PT rev (3m)4.73%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)1.39%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.38 | ||
| Fwd PE | 30 | ||
| P/S | 11.46 | ||
| P/FCF | 35.83 | ||
| P/OCF | 31.63 | ||
| P/B | 21.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.77 |
EPS(TTM)13.93
EY2.91%
EPS(NY)15.96
Fwd EY3.33%
FCF(TTM)13.37
FCFY2.79%
OCF(TTM)15.14
OCFY3.16%
SpS41.81
BVpS22.06
TBVpS-24.66
PEG (NY)2.42
PEG (5Y)4.03
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 Y14.21%
EPS Next 2Y13.1%
EPS Next 3Y12.78%
EPS Next 5Y12.02%
Revenue 1Y (TTM)8.77%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%10.7%
Revenue Next Year6.79%
Revenue Next 2Y7.32%
Revenue Next 3Y7.55%
Revenue Next 5Y7.09%
EBIT growth 1Y13.66%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year21.3%
EBIT Next 3Y13.49%
EBIT Next 5Y11.25%
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 34.38 and the Price/Book (PB) ratio is 21.72.
Can you provide the financial health for MCO stock?
The financial health rating of MOODY'S CORP (MCO) is 5 / 10.