MOODY'S CORP (MCO) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:MCO • US6153691059

454.8 USD
-6.41 (-1.39%)
Last: Feb 5, 2026, 02:01 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to MCO. MCO was compared to 238 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. While showing a medium growth rate, MCO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

8

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.
  • MCO had positive earnings in each of the past 5 years.
  • 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 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • The Return On Assets of MCO (14.56%) is better than 94.54% of its industry peers.
  • With an excellent Return On Equity value of 56.71%, MCO belongs to the best of the industry, outperforming 98.74% of the companies in the same industry.
  • MCO has a Return On Invested Capital of 20.43%. This is amongst the best in the industry. MCO outperforms 96.64% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MCO is significantly above the industry average of 7.28%.
  • The 3 year average ROIC (16.07%) for MCO is below the current ROIC(20.43%), indicating increased profibility in the last year.
Industry RankSector 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%
MCO Yearly ROA, ROE, ROICMCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 200 -200 -300

1.3 Margins

  • MCO has a Profit Margin of 29.92%. This is in the better half of the industry: MCO outperforms 74.37% of its industry peers.
  • MCO's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 43.81%, MCO is in the better half of the industry, outperforming 78.99% of the companies in the same industry.
  • In the last couple of years the Operating Margin of MCO has remained more or less at the same level.
  • MCO has a better Gross Margin (73.75%) than 81.93% of its industry peers.
  • MCO's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
MCO Yearly Profit, Operating, Gross MarginsMCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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4

2. Health

2.1 Basic Checks

  • Compared to 1 year ago, MCO has less shares outstanding
  • Compared to 5 years ago, MCO has less shares outstanding
  • The debt/assets ratio for MCO has remained at the same level compared to a year ago.
MCO Yearly Shares OutstandingMCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B

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 79.41% 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: 75.21% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.76
Debt/FCF 2.91
Altman-Z N/A
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 0 2B 4B 6B

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 better Current ratio (1.84) than 72.27% 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 has a Quick ratio of 1.84. This is in the better half of the industry: MCO outperforms 72.27% of its industry peers.
Industry RankSector Rank
Current Ratio 1.84
Quick Ratio 1.84
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 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 15.60% over the past year.
  • 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.
  • MCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.77%.
  • The Revenue has been growing slightly by 7.98% on average over the past years.
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

  • MCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.76% yearly.
  • MCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.37% yearly.
EPS Next Y19.02%
EPS Next 2Y15.08%
EPS Next 3Y14.09%
EPS Next 5Y12.76%
Revenue Next Year8.41%
Revenue Next 2Y8.1%
Revenue Next 3Y8.04%
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.
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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 32.65, the valuation of MCO can be described as expensive.
  • Based on the Price/Earnings ratio, MCO is valued a bit more expensive than the industry average as 76.89% of the companies are valued more cheaply.
  • MCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.25.
  • The Price/Forward Earnings ratio is 27.52, which means the current valuation is very expensive for MCO.
  • 66.81% of the companies in the same industry are cheaper than MCO, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.50. MCO is around the same levels.
Industry RankSector Rank
PE 32.65
Fwd PE 27.52
MCO Price Earnings VS Forward Price EarningsMCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 68.49% of the companies listed in the same industry.
  • 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 33.84
EV/EBITDA 23.15
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 14.09% in the coming years.
PEG (NY)1.72
PEG (5Y)3.83
EPS Next 2Y15.08%
EPS Next 3Y14.09%

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

4

5. Dividend

5.1 Amount

  • MCO has a yearly dividend return of 0.73%, which is pretty low.
  • Compared to an average industry Dividend Yield of 6.02, MCO is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.82, MCO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.73%

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.
  • MCO has decreased its dividend recently.
Dividend Growth(5Y)11.37%
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 1 2 3

5.3 Sustainability

  • MCO pays out 30.70% of its income as dividend. This is a 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 2Y15.08%
EPS Next 3Y14.09%
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 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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Find the best dividend stocksShow peers with best dividend

MOODY'S CORP

NYSE:MCO (2/5/2026, 2:01:08 PM)

454.8

-6.41 (-1.39%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-22
Earnings (Next)02-18
Inst Owners79.21%
Inst Owner Change-1.48%
Ins Owners0.06%
Ins Owner Change-0.09%
Market Cap81.14B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts76.55
Price Target562.84 (23.76%)
Short Float %1.66%
Short Ratio3.4
Dividend
Industry RankSector Rank
Dividend Yield 0.73%
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)1.4%
PT rev (3m)2.1%
EPS NQ rev (1m)1.57%
EPS NQ rev (3m)4.06%
EPS NY rev (1m)0.2%
EPS NY rev (3m)4.21%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)1.52%
Valuation
Industry RankSector Rank
PE 32.65
Fwd PE 27.52
P/S 10.82
P/FCF 33.84
P/OCF 29.86
P/B 20.5
P/tB N/A
EV/EBITDA 23.15
EPS(TTM)13.93
EY3.06%
EPS(NY)16.53
Fwd EY3.63%
FCF(TTM)13.44
FCFY2.96%
OCF(TTM)15.23
OCFY3.35%
SpS42.05
BVpS22.18
TBVpS-24.8
PEG (NY)1.72
PEG (5Y)3.83
Graham Number83.38
Profitability
Industry RankSector 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 RankSector 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 Y19.02%
EPS Next 2Y15.08%
EPS Next 3Y14.09%
EPS Next 5Y12.76%
Revenue 1Y (TTM)8.77%
Revenue growth 3Y4.46%
Revenue growth 5Y7.98%
Sales Q2Q%10.7%
Revenue Next Year8.41%
Revenue Next 2Y8.1%
Revenue Next 3Y8.04%
Revenue Next 5Y7.37%
EBIT growth 1Y13.66%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year27.71%
EBIT Next 3Y15.32%
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 3 / 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 32.65 and the Price/Book (PB) ratio is 20.5.


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%.