MOODY'S CORP (MCO) Fundamental Analysis & Valuation

NYSE:MCO • US6153691059

Current stock price

428.09 USD
-0.37 (-0.09%)
Last:

This MCO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. MCO Profitability Analysis

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.
  • Each year in the past 5 years MCO had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 15.53%, MCO belongs to the top of the industry, outperforming 94.98% of the companies in the same industry.
  • MCO has a Return On Equity of 60.66%. This is amongst the best in the industry. MCO outperforms 99.16% of its industry peers.
  • MCO has a Return On Invested Capital of 20.93%. This is amongst the best in the industry. MCO outperforms 96.65% of its industry peers.
  • MCO had an Average Return On Invested Capital over the past 3 years of 18.20%. This is significantly above the industry average of 7.28%.
  • The last Return On Invested Capital (20.93%) for MCO is above the 3 year average (18.20%), which is a sign of increasing profitability.
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

  • The Profit Margin of MCO (31.86%) is better than 78.24% of its industry peers.
  • In the last couple of years the Profit Margin of MCO has remained more or less at the same level.
  • Looking at the Operating Margin, with a value of 44.86%, MCO belongs to the top of the industry, outperforming 82.85% 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.
  • With an excellent Gross Margin value of 74.44%, MCO belongs to the best of the industry, outperforming 82.01% 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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7

2. MCO Health Analysis

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.
  • MCO has a better debt/assets ratio than last year.
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 6.84. This indicates that MCO is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 6.84, MCO belongs to the best of the industry, outperforming 89.54% of the companies in the same industry.
  • 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.
  • MCO has a better Debt to FCF ratio (2.72) than 80.75% of its industry peers.
  • MCO has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
  • MCO has a Debt to Equity ratio of 1.73. This is in the lower half of the industry: MCO underperforms 73.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.73
Debt/FCF 2.72
Altman-Z 6.84
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 has a better Current ratio (1.74) than 71.55% of its industry peers.
  • A Quick Ratio of 1.74 indicates that MCO should not have too much problems paying its short term obligations.
  • MCO has a better Quick ratio (1.74) than 71.55% of its industry peers.
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. MCO Growth Analysis

3.1 Past

  • MCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.79%, which is quite good.
  • The Earnings Per Share has been growing by 8.07% on average over the past years. This is quite good.
  • The Revenue has grown by 8.89% in the past year. This is quite good.
  • MCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.52% yearly.
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

  • The Earnings Per Share is expected to grow by 10.77% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 6.55% on average over the next years.
EPS Next Y13.1%
EPS Next 2Y12.42%
EPS Next 3Y11.55%
EPS Next 5Y10.77%
Revenue Next Year7.79%
Revenue Next 2Y7.77%
Revenue Next 3Y7.63%
Revenue Next 5Y6.55%

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 2030 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 2030 5 10 15 20

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2

4. MCO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 28.63, MCO can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of MCO indicates a slightly more expensive valuation: MCO is more expensive than 74.90% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of MCO to the average of the S&P500 Index (25.50), we can say MCO is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 25.32, the valuation of MCO can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MCO indicates a slightly more expensive valuation: MCO is more expensive than 65.69% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of MCO to the average of the S&P500 Index (22.67), we can say MCO is valued inline with the index average.
Industry RankSector Rank
PE 28.63
Fwd PE 25.32
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

  • 68.62% 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 29.59
EV/EBITDA 20.48
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.
  • MCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)3.55
EPS Next 2Y12.42%
EPS Next 3Y11.55%

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3

5. MCO Dividend Analysis

5.1 Amount

  • MCO has a yearly dividend return of 0.95%, which is pretty low.
  • Compared to an average industry Dividend Yield of 6.72, MCO is paying slightly less dividend.
  • With a Dividend Yield of 0.95, MCO pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.95%

5.2 History

  • On average, the dividend of MCO grows each year by 11.82%, 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)11.82%
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

  • MCO pays out 28.51% of its income as dividend. This is a 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 2Y12.42%
EPS Next 3Y11.55%
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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MCO Fundamentals: All Metrics, Ratios and Statistics

MOODY'S CORP

NYSE:MCO (3/25/2026, 3:10:10 PM)

428.09

-0.37 (-0.09%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-18
Earnings (Next)04-20
Inst Owners79.32%
Inst Owner Change0.3%
Ins Owners0.07%
Ins Owner Change2.36%
Market Cap76.20B
Revenue(TTM)7.72B
Net Income(TTM)2.46B
Analysts79.33
Price Target561.25 (31.11%)
Short Float %1.52%
Short Ratio1.66
Dividend
Industry RankSector Rank
Dividend Yield 0.95%
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)-2.42%
PT rev (3m)1.51%
EPS NQ rev (1m)3.01%
EPS NQ rev (3m)3.11%
EPS NY rev (1m)2.12%
EPS NY rev (3m)2.52%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.35%
Valuation
Industry RankSector Rank
PE 28.63
Fwd PE 25.32
P/S 9.87
P/FCF 29.59
P/OCF 26.27
P/B 18.8
P/tB N/A
EV/EBITDA 20.48
EPS(TTM)14.95
EY3.49%
EPS(NY)16.91
Fwd EY3.95%
FCF(TTM)14.47
FCFY3.38%
OCF(TTM)16.3
OCFY3.81%
SpS43.36
BVpS22.78
TBVpS-23.48
PEG (NY)2.19
PEG (5Y)3.55
Graham Number87.53
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 6.84
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 Y13.1%
EPS Next 2Y12.42%
EPS Next 3Y11.55%
EPS Next 5Y10.77%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%12.98%
Revenue Next Year7.79%
Revenue Next 2Y7.77%
Revenue Next 3Y7.63%
Revenue Next 5Y6.55%
EBIT growth 1Y16.29%
EBIT growth 3Y20.13%
EBIT growth 5Y7.19%
EBIT Next Year23.68%
EBIT Next 3Y13.4%
EBIT Next 5Y10.35%
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 Fundamental Analysis 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 28.63 and the Price/Book (PB) ratio is 18.8.


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%.