MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCO - US6153691059 - Common Stock
531.44 USD
-1.46 (-0.27%)
531.44 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. While MCO belongs to the best of the industry regarding profitability, 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.
In the past 5 years MCO has always been profitable.
MCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MCO's Return On Assets of 14.56% is amongst the best of the industry. MCO outperforms 94.89% of its industry peers.
MCO has a Return On Equity of 56.71%. This is amongst the best in the industry. MCO outperforms 98.72% of its industry peers.
MCO has a Return On Invested Capital of 20.43%. This is amongst the best in the industry. MCO outperforms 97.02% 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 7.14%.
The last Return On Invested Capital (20.43%) for MCO is above the 3 year average (16.07%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 29.92%, MCO is in the better half of the industry, outperforming 77.02% of the companies in the same industry.
MCO's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 43.81%, MCO is doing good in the industry, outperforming 78.72% 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 (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
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.
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 2.91. 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.
The Debt to FCF ratio of MCO (2.91) is better than 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.
The Debt to Equity ratio of MCO (1.76) is worse than 74.47% of its industry peers.
| 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 has a Current ratio of 1.84. This is in the better half 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.
The Quick ratio of MCO (1.84) is better than 72.34% 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
The Earnings Per Share is expected to grow by 12.76% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.37% on average over the next years.
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
A Price/Earnings ratio of 38.15 indicates a quite expensive valuation of MCO.
74.47% of the companies in the same industry are cheaper than MCO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.92. MCO is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 32.19, the valuation of MCO can be described as expensive.
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 23.57. MCO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.15 | ||
| Fwd PE | 32.19 |
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 | 39.54 | ||
| EV/EBITDA | 26.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MCO does not grow enough to justify the current Price/Earnings ratio.
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 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
MCO has a yearly dividend return of 0.74%, which is pretty low.
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
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
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%
531.44
-1.46 (-0.27%)
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 Cap94.81B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts76
Price Target555.07 (4.45%)
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 | 38.15 | ||
| Fwd PE | 32.19 | ||
| P/S | 12.64 | ||
| P/FCF | 39.54 | ||
| P/OCF | 34.89 | ||
| P/B | 23.96 | ||
| 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 38.15 and the Price/Book (PB) ratio is 23.96.
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%.