MOODY'S CORP (MCO) Stock Fundamental Analysis
NYSE:MCO - New York Stock Exchange, Inc. - US6153691059 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to MCO. MCO was compared to 227 industry peers in the Capital Markets industry. MCO scores excellent on profitability, but 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.
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 has a Return On Assets of 13.95%. This is amongst the best in the industry. MCO outperforms 95.59% of its industry peers.
MCO has a better Return On Equity (56.92%) than 98.24% of its industry peers.
MCO's Return On Invested Capital of 20.12% is amongst the best of the industry. MCO outperforms 97.36% of its industry peers.
MCO had an Average Return On Invested Capital over the past 3 years of 16.07%. This is significantly above the industry average of 7.09%.
The last Return On Invested Capital (20.12%) for MCO is above the 3 year average (16.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.95% | ||
| ROE | 56.92% | ||
| ROIC | 20.12% |
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 29.14%. This is in the better half of the industry: MCO outperforms 69.60% of its industry peers.
In the last couple of years the Profit Margin of MCO has remained more or less at the same level.
With a decent Operating Margin value of 42.24%, MCO is doing good in the industry, outperforming 74.89% of the companies in the same industry.
MCO's Operating Margin has been stable in the last couple of years.
MCO has a better Gross Margin (72.75%) than 78.41% 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 | 42.24% | ||
| PM (TTM) | 29.14% | ||
| GM | 72.75% |
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
The number of shares outstanding for MCO has been reduced compared to 1 year ago.
Compared to 5 years ago, MCO has less shares outstanding
Compared to 1 year ago, MCO has about the same debt to assets ratio.
2.2 Solvency
MCO has a debt to FCF ratio of 2.73. This is a good value and a sign of high solvency as MCO would need 2.73 years to pay back of all of its debts.
MCO has a Debt to FCF ratio of 2.73. This is amongst the best in the industry. MCO outperforms 81.06% of its industry peers.
MCO has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.84, MCO is doing worse than 74.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 2.73 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.56 indicates that MCO should not have too much problems paying its short term obligations.
MCO's Current ratio of 1.56 is fine compared to the rest of the industry. MCO outperforms 66.08% of its industry peers.
MCO has a Quick Ratio of 1.56. 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 1.56, MCO is in the better half of the industry, outperforming 66.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
MCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.75%, which is quite impressive.
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.
The Revenue has grown by 15.95% 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)25.75%
EPS 3Y0.49%
EPS 5Y8.53%
EPS Q2Q%13.65%
Revenue 1Y (TTM)15.95%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%7.73%
3.2 Future
The Earnings Per Share is expected to grow by 11.13% on average over the next years. This is quite good.
Based on estimates for the next years, MCO will show a small growth in Revenue. The Revenue will grow by 6.77% on average per year.
EPS Next Y12.38%
EPS Next 2Y12.6%
EPS Next 3Y12.7%
EPS Next 5Y11.13%
Revenue Next Year5.06%
Revenue Next 2Y6.51%
Revenue Next 3Y7%
Revenue Next 5Y6.77%
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.
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 33.69 indicates a quite expensive valuation of MCO.
73.57% of the companies in the same industry are cheaper than MCO, based on the Price/Earnings ratio.
MCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.92.
A Price/Forward Earnings ratio of 27.55 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 70.04% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, MCO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.69 | ||
| Fwd PE | 27.55 |
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 68.72% of the companies listed in the same industry.
MCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.42 | ||
| EV/EBITDA | 23.92 |
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.
A more expensive valuation may be justified as MCO's earnings are expected to grow with 12.70% in the coming years.
PEG (NY)2.72
PEG (5Y)3.95
EPS Next 2Y12.6%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, MCO is not a good candidate for dividend investing.
MCO's Dividend Yield is slightly below the industry average, which is at 8.41.
Compared to an average S&P500 Dividend Yield of 2.51, MCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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
31.34% of the earnings are spent on dividend by MCO. This is a low number and sustainable payout ratio.
The dividend of MCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.34%
EPS Next 2Y12.6%
EPS Next 3Y12.7%
NYSE:MCO (4/25/2025, 10:07:08 AM)
435.92
-3.66 (-0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners78.4%
Inst Owner Change0.68%
Ins Owners0.08%
Ins Owner Change0.9%
Market Cap78.42B
Analysts75
Price Target515.94 (18.36%)
Short Float %1.97%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend3.42
Dividend Growth(5Y)11.37%
DP31.34%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.46%
Min EPS beat(2)0%
Max EPS beat(2)6.92%
EPS beat(4)3
Avg EPS beat(4)6.45%
Min EPS beat(4)0%
Max EPS beat(4)11.21%
EPS beat(8)6
Avg EPS beat(8)4.45%
EPS beat(12)8
Avg EPS beat(12)5.44%
EPS beat(16)10
Avg EPS beat(16)5.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)0.84%
Revenue beat(4)3
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)5.41%
Revenue beat(8)5
Avg Revenue beat(8)1.51%
Revenue beat(12)7
Avg Revenue beat(12)0.52%
Revenue beat(16)11
Avg Revenue beat(16)0.96%
PT rev (1m)0.25%
PT rev (3m)7.74%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)-1.04%
EPS NY rev (3m)4.3%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.69 | ||
| Fwd PE | 27.55 | ||
| P/S | 10.85 | ||
| P/FCF | 31.42 | ||
| P/OCF | 27.81 | ||
| P/B | 21.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.92 |
EPS(TTM)12.94
EY2.97%
EPS(NY)15.82
Fwd EY3.63%
FCF(TTM)13.88
FCFY3.18%
OCF(TTM)15.68
OCFY3.6%
SpS40.17
BVpS20.57
TBVpS-25.1
PEG (NY)2.72
PEG (5Y)3.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.95% | ||
| ROE | 56.92% | ||
| ROCE | 25.06% | ||
| ROIC | 20.12% | ||
| ROICexc | 24.56% | ||
| ROICexgc | 139.02% | ||
| OM | 42.24% | ||
| PM (TTM) | 29.14% | ||
| GM | 72.75% | ||
| FCFM | 34.54% |
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-Score8
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 2.73 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 72.97% | ||
| Cap/Sales | 4.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.66% | ||
| Profit Quality | 118.52% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| 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)25.75%
EPS 3Y0.49%
EPS 5Y8.53%
EPS Q2Q%13.65%
EPS Next Y12.38%
EPS Next 2Y12.6%
EPS Next 3Y12.7%
EPS Next 5Y11.13%
Revenue 1Y (TTM)15.95%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%7.73%
Revenue Next Year5.06%
Revenue Next 2Y6.51%
Revenue Next 3Y7%
Revenue Next 5Y6.77%
EBIT growth 1Y23.96%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year21.81%
EBIT Next 3Y13.09%
EBIT Next 5Y10.48%
FCF growth 1Y89.81%
FCF growth 3Y10.55%
FCF growth 5Y9.44%
OCF growth 1Y74.94%
OCF growth 3Y12.28%
OCF growth 5Y11.12%