MOODY'S CORP (MCO) Stock Fundamental Analysis

NYSE:MCO • US6153691059

478.18 USD
+14.81 (+3.2%)
Last: Feb 26, 2026, 02:12 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall MCO gets a fundamental rating of 6 out of 10. We evaluated MCO against 238 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

9

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.
  • MCO had a positive operating cash flow in each of the past 5 years.
MCO Yearly Net Income VS EBIT VS OCF VS FCFMCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • MCO has a Return On Assets of 15.53%. This is amongst the best in the industry. MCO outperforms 95.38% of its industry peers.
  • MCO has a better Return On Equity (60.66%) than 99.16% of its industry peers.
  • MCO's Return On Invested Capital of 20.93% is amongst the best of the industry. MCO outperforms 97.06% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for MCO is significantly above the industry average of 7.31%.
  • The 3 year average ROIC (18.20%) for MCO is below the current ROIC(20.93%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 15.53%
ROE 60.66%
ROIC 20.93%
ROA(3y)13.27%
ROA(5y)12.89%
ROE(3y)55.61%
ROE(5y)60.51%
ROIC(3y)18.2%
ROIC(5y)17.14%
MCO Yearly ROA, ROE, ROICMCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 200 -200 -300

1.3 Margins

  • MCO has a better Profit Margin (31.86%) than 78.57% 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 has a Operating Margin of 44.86%. This is amongst the best in the industry. MCO outperforms 81.93% of its industry peers.
  • 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 74.44%, MCO belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
  • In the last couple of years the Gross Margin of MCO has remained more or less at the same level.
Industry RankSector Rank
OM 44.86%
PM (TTM) 31.86%
GM 74.44%
OM growth 3Y7.09%
OM growth 5Y-0.31%
PM growth 3Y8.23%
PM growth 5Y-0.76%
GM growth 3Y1.83%
GM growth 5Y0.52%
MCO Yearly Profit, Operating, Gross MarginsMCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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 an improved debt to assets ratio.
MCO Yearly Shares OutstandingMCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
MCO Yearly Total Debt VS Total AssetsMCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • MCO has an Altman-Z score of 7.17. This indicates that MCO is financially healthy and has little risk of bankruptcy at the moment.
  • MCO has a better Altman-Z score (7.17) than 90.34% of its industry peers.
  • The Debt to FCF ratio of MCO is 2.72, which is a good value as it means it would take MCO, 2.72 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 2.72, MCO is doing good in the industry, outperforming 79.41% of the companies in the same industry.
  • MCO has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.73, MCO is not doing good in the industry: 73.95% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.73
Debt/FCF 2.72
Altman-Z 7.17
ROIC/WACCN/A
WACCN/A
MCO Yearly LT Debt VS Equity VS FCFMCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.74 indicates that MCO should not have too much problems paying its short term obligations.
  • MCO's Current ratio of 1.74 is fine compared to the rest of the industry. MCO outperforms 72.27% of its industry peers.
  • A Quick Ratio of 1.74 indicates that MCO should not have too much problems paying its short term obligations.
  • With a decent Quick ratio value of 1.74, MCO is doing good in the industry, outperforming 72.27% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.74
Quick Ratio 1.74
MCO Yearly Current Assets VS Current LiabilitesMCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 19.79% 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 8.07% yearly.
  • Looking at the last year, MCO shows a quite strong growth in Revenue. The Revenue has grown by 8.89% in the last year.
  • Measured over the past years, MCO shows a small growth in Revenue. The Revenue has been growing by 7.52% on average per year.
EPS 1Y (TTM)19.79%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%38.93%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%12.98%

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 11.32% on average per year.
  • The Revenue is expected to grow by 7.28% on average over the next years.
EPS Next Y10.75%
EPS Next 2Y11.43%
EPS Next 3Y11.4%
EPS Next 5Y11.32%
Revenue Next Year7.71%
Revenue Next 2Y7.82%
Revenue Next 3Y7.42%
Revenue Next 5Y7.28%

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.
MCO Yearly Revenue VS EstimatesMCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
MCO Yearly EPS VS EstimatesMCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15 20

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2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 31.99, which means the current valuation is very expensive for MCO.
  • 74.79% of the companies in the same industry are cheaper than MCO, based on the Price/Earnings ratio.
  • MCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.05, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 28.88 indicates a quite expensive valuation of MCO.
  • 65.97% of the companies in the same industry are cheaper than MCO, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of MCO to the average of the S&P500 Index (28.03), we can say MCO is valued inline with the index average.
Industry RankSector Rank
PE 31.99
Fwd PE 28.88
MCO Price Earnings VS Forward Price EarningsMCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 68.49% of the companies in the same industry are more expensive than MCO, based on the Enterprise Value to EBITDA ratio.
  • 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 RankSector Rank
P/FCF 33.13
EV/EBITDA 22.11
MCO Per share dataMCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

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.
PEG (NY)2.98
PEG (5Y)3.96
EPS Next 2Y11.43%
EPS Next 3Y11.4%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • MCO has a yearly dividend return of 0.91%, which is pretty low.
  • Compared to an average industry Dividend Yield of 6.18, MCO is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.80, MCO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.91%

5.2 History

  • On average, the dividend of MCO grows each year by 11.82%, which is quite nice.
  • 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)11.82%
Div Incr Years1
Div Non Decr Years1
MCO Yearly Dividends per shareMCO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 28.51% 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.
DP28.51%
EPS Next 2Y11.43%
EPS Next 3Y11.4%
MCO Yearly Income VS Free CF VS DividendMCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
MCO Dividend Payout.MCO Dividend Payout, showing the Payout Ratio.MCO Dividend Payout.PayoutRetained Earnings

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MOODY'S CORP

NYSE:MCO (2/26/2026, 2:12:53 PM)

478.18

+14.81 (+3.2%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-18
Earnings (Next)04-20
Inst Owners79.21%
Inst Owner Change-0.13%
Ins Owners0.06%
Ins Owner Change-0.05%
Market Cap85.31B
Revenue(TTM)7.72B
Net Income(TTM)2.46B
Analysts77.24
Price Target561.25 (17.37%)
Short Float %1.37%
Short Ratio2
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly Dividend3.92
Dividend Growth(5Y)11.82%
DP28.51%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.5%
Min EPS beat(2)5.43%
Max EPS beat(2)5.56%
EPS beat(4)4
Avg EPS beat(4)5.55%
Min EPS beat(4)3.89%
Max EPS beat(4)7.32%
EPS beat(8)7
Avg EPS beat(8)6.37%
EPS beat(12)10
Avg EPS beat(12)7.14%
EPS beat(16)11
Avg EPS beat(16)4.95%
Revenue beat(2)2
Avg Revenue beat(2)1.33%
Min Revenue beat(2)0.48%
Max Revenue beat(2)2.19%
Revenue beat(4)4
Avg Revenue beat(4)1.44%
Min Revenue beat(4)0.48%
Max Revenue beat(4)2.19%
Revenue beat(8)7
Avg Revenue beat(8)2.1%
Revenue beat(12)9
Avg Revenue beat(12)1.69%
Revenue beat(16)11
Avg Revenue beat(16)0.71%
PT rev (1m)2.19%
PT rev (3m)3.68%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)2.04%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.15%
Valuation
Industry RankSector Rank
PE 31.99
Fwd PE 28.88
P/S 11.05
P/FCF 33.13
P/OCF 29.41
P/B 21.04
P/tB N/A
EV/EBITDA 22.11
EPS(TTM)14.95
EY3.13%
EPS(NY)16.56
Fwd EY3.46%
FCF(TTM)14.43
FCFY3.02%
OCF(TTM)16.26
OCFY3.4%
SpS43.26
BVpS22.72
TBVpS-23.43
PEG (NY)2.98
PEG (5Y)3.96
Graham Number87.43
Profitability
Industry RankSector Rank
ROA 15.53%
ROE 60.66%
ROCE 26.94%
ROIC 20.93%
ROICexc 25.86%
ROICexgc 124.13%
OM 44.86%
PM (TTM) 31.86%
GM 74.44%
FCFM 33.36%
ROA(3y)13.27%
ROA(5y)12.89%
ROE(3y)55.61%
ROE(5y)60.51%
ROIC(3y)18.2%
ROIC(5y)17.14%
ROICexc(3y)23.05%
ROICexc(5y)21.2%
ROICexgc(3y)144.74%
ROICexgc(5y)126.2%
ROCE(3y)23.43%
ROCE(5y)22.06%
ROICexgc growth 3Y18.23%
ROICexgc growth 5Y-6.22%
ROICexc growth 3Y19.02%
ROICexc growth 5Y0.38%
OM growth 3Y7.09%
OM growth 5Y-0.31%
PM growth 3Y8.23%
PM growth 5Y-0.76%
GM growth 3Y1.83%
GM growth 5Y0.52%
F-Score8
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 1.73
Debt/FCF 2.72
Debt/EBITDA 1.77
Cap/Depr 67.92%
Cap/Sales 4.22%
Interest Coverage 14.73
Cash Conversion 73.59%
Profit Quality 104.72%
Current Ratio 1.74
Quick Ratio 1.74
Altman-Z 7.17
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)71.37%
Cap/Depr(5y)70.74%
Cap/Sales(3y)4.43%
Cap/Sales(5y)4.14%
Profit Quality(3y)114.73%
Profit Quality(5y)103.03%
High Growth Momentum
Growth
EPS 1Y (TTM)19.79%
EPS 3Y20.43%
EPS 5Y8.07%
EPS Q2Q%38.93%
EPS Next Y10.75%
EPS Next 2Y11.43%
EPS Next 3Y11.4%
EPS Next 5Y11.32%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%12.98%
Revenue Next Year7.71%
Revenue Next 2Y7.82%
Revenue Next 3Y7.42%
Revenue Next 5Y7.28%
EBIT growth 1Y16.29%
EBIT growth 3Y20.13%
EBIT growth 5Y7.19%
EBIT Next Year22.73%
EBIT Next 3Y13.31%
EBIT Next 5Y11.49%
FCF growth 1Y2.14%
FCF growth 3Y29.31%
FCF growth 5Y4.74%
OCF growth 1Y2.22%
OCF growth 3Y25.32%
OCF growth 5Y6.21%

MOODY'S CORP / MCO FAQ

What is the ChartMill fundamental rating of MOODY'S CORP (MCO) stock?

ChartMill assigns a fundamental rating of 6 / 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 9 / 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 31.99 and the Price/Book (PB) ratio is 21.04.


Can you provide the dividend sustainability for MCO stock?

The dividend rating of MOODY'S CORP (MCO) is 3 / 10 and the dividend payout ratio is 28.51%.