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%)
Overall MCO gets a fundamental rating of 5 out of 10. We evaluated MCO against 235 industry peers in the Capital Markets industry. MCO scores excellent on profitability, but 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.
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.
MCO had positive earnings in each of the past 5 years.
Each year in the past 5 years MCO had a positive operating cash flow.
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's Return On Equity of 56.71% is amongst the best of the industry. MCO outperforms 98.72% of its industry peers.
With an excellent Return On Invested Capital value of 20.43%, MCO belongs to the best of the industry, outperforming 97.02% 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 7.14%.
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
With a decent Profit Margin value of 29.92%, MCO is doing good in 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.
The Operating Margin of MCO (43.81%) is better than 78.72% 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 73.75%, MCO belongs to the best of the industry, outperforming 82.13% 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 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.
MCO has about the same debt/assets ratio as last year.
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.
Looking at the Debt to Equity ratio, with a value of 1.76, MCO is doing worse than 74.47% 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
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.
MCO's Quick ratio of 1.84 is fine compared to the rest of the industry. MCO outperforms 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
MCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.60%, which is quite good.
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
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
Based on the Price/Earnings ratio of 38.13, the valuation of MCO can be described as expensive.
74.04% of the companies in the same industry are cheaper than MCO, based on the Price/Earnings ratio.
MCO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.00.
A Price/Forward Earnings ratio of 32.18 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 69.79% of the companies in the same industry.
MCO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.13 | ||
| Fwd PE | 32.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCO is valued a bit 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 | 26.47 |
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.
MCO has an outstanding profitability rating, which may justify a higher PE ratio.
MCO's earnings are expected to grow with 13.99% in the coming years. This may justify a more expensive valuation.
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.
MCO's Dividend Yield is slightly below the industry average, which is at 6.39.
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 been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MCO decreased 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 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 | 26.47 |
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%.