MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCO - US6153691059 - Common Stock
531.17 USD
-0.27 (-0.05%)
531.17 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MCO. MCO was compared to 235 industry peers in the Capital Markets industry. MCO scores excellent on profitability, 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.
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
MCO has a Return On Assets of 14.56%. This is amongst the best in the industry. MCO outperforms 94.89% of its industry peers.
Looking at the Return On Equity, with a value of 56.71%, MCO belongs to the top of the industry, outperforming 98.72% of the companies in the same industry.
The Return On Invested Capital of MCO (20.43%) is better than 97.02% 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 7.14%.
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's Profit Margin of 29.92% is fine compared to the rest of the industry. MCO outperforms 77.02% of its industry peers.
MCO's Profit Margin has been stable in the last couple of years.
The Operating Margin of MCO (43.81%) is better than 78.72% of its industry peers.
MCO's Operating Margin has been stable in the last couple of years.
MCO has a better Gross Margin (73.75%) than 82.13% 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 | 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.
The debt/assets ratio for MCO has remained at the same level compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MCO is 2.91, which is a good value as it means it would take MCO, 2.91 years of fcf income to pay off all of its debts.
MCO's Debt to FCF ratio of 2.91 is fine compared to the rest of the industry. MCO outperforms 79.15% 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.
With a Debt to Equity ratio value of 1.76, MCO is not doing good in the industry: 74.47% 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
A Current Ratio of 1.84 indicates that MCO should not have too much problems paying its short term obligations.
MCO's Current ratio of 1.84 is fine compared to the rest of the industry. MCO outperforms 72.34% of its industry peers.
MCO has a Quick 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.
With a decent Quick ratio value of 1.84, MCO is doing good in the industry, outperforming 72.34% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 8.53% on average over the past years. This is quite good.
Looking at the last year, MCO shows a quite strong growth in Revenue. The Revenue has grown by 8.77% in the last year.
MCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.98% yearly.
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
Based on estimates for the next years, MCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.76% on average per year.
Based on estimates for the next years, MCO will show a small growth in Revenue. The Revenue will grow by 7.37% on average per year.
EPS Next Y18.78%
EPS Next 2Y15.01%
EPS Next 3Y13.99%
EPS Next 5Y12.76%
Revenue Next Year8.22%
Revenue Next 2Y7.97%
Revenue Next 3Y7.97%
Revenue Next 5Y7.37%
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
Based on the Price/Earnings ratio of 38.13, the valuation of MCO can be described as expensive.
Based on the Price/Earnings ratio, MCO is valued a bit more expensive than 74.47% of the companies in the same industry.
MCO is valuated rather expensively when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 32.18 indicates a quite expensive valuation of MCO.
Based on the Price/Forward Earnings ratio, MCO is valued a bit more expensive than the industry average as 69.79% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.70. MCO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.13 | ||
| Fwd PE | 32.18 |
4.2 Price Multiples
MCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MCO is cheaper than 66.38% of the companies in the same industry.
MCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.52 | ||
| EV/EBITDA | 26.49 |
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 13.99% in the coming years.
PEG (NY)2.03
PEG (5Y)4.47
EPS Next 2Y15.01%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, MCO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.39, MCO is paying slightly less dividend.
With a Dividend Yield of 0.74, MCO pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
On average, the dividend of MCO grows each year by 11.37%, 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 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.
The dividend of MCO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP30.7%
EPS Next 2Y15.01%
EPS Next 3Y13.99%
531.17
-0.27 (-0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.21%
Inst Owner Change0%
Ins Owners0.06%
Ins Owner Change-0.46%
Market Cap94.76B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts76
Price Target555.07 (4.5%)
Short Float %1.53%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend3.42
Dividend Growth(5Y)11.37%
DP30.7%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0.06%
PT rev (3m)0.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.69%
EPS NY rev (1m)0%
EPS NY rev (3m)5.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.13 | ||
| Fwd PE | 32.18 | ||
| P/S | 12.63 | ||
| P/FCF | 39.52 | ||
| P/OCF | 34.88 | ||
| P/B | 23.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.49 |
EPS(TTM)13.93
EY2.62%
EPS(NY)16.51
Fwd EY3.11%
FCF(TTM)13.44
FCFY2.53%
OCF(TTM)15.23
OCFY2.87%
SpS42.05
BVpS22.18
TBVpS-24.8
PEG (NY)2.03
PEG (5Y)4.47
Graham Number83.38
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 Y18.78%
EPS Next 2Y15.01%
EPS Next 3Y13.99%
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 2Y7.97%
Revenue Next 3Y7.97%
Revenue Next 5Y7.37%
EBIT growth 1Y13.66%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year27.36%
EBIT Next 3Y14.96%
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.
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.
How profitable is MOODY'S CORP (MCO) stock?
MOODY'S CORP (MCO) has a profitability rating of 8 / 10.
What is the valuation of MOODY'S CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MOODY'S CORP (MCO) is 38.13 and the Price/Book (PB) ratio is 23.95.
Can you provide the dividend sustainability for MCO stock?
The dividend rating of MOODY'S CORP (MCO) is 4 / 10 and the dividend payout ratio is 30.7%.