MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCO - US6153691059 - Common Stock
540.77 USD
+1.16 (+0.21%)
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
- 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.
- In the past 5 years MCO always reported a positive cash flow from operatings.
1.2 Ratios
- MCO has a better Return On Assets (14.56%) than 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.
- Looking at the Return On Invested Capital, with a value of 20.43%, MCO belongs to the top of the industry, outperforming 97.02% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for MCO is significantly above the industry average of 7.16%.
- 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
- MCO has a Profit Margin of 29.92%. This is in the better half of the industry: MCO outperforms 74.47% 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 43.81%. This is in the better half of the industry: MCO outperforms 78.72% of its industry peers.
- MCO's Operating Margin has been stable in the last couple of years.
- MCO's Gross Margin of 73.75% is amongst the best of the industry. MCO outperforms 82.55% 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
- Compared to 1 year ago, MCO has less shares outstanding
- Compared to 5 years ago, MCO has less shares outstanding
- 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.
- MCO's Debt to FCF ratio of 2.91 is fine compared to the rest of the industry. MCO outperforms 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.
- MCO has a Debt to Equity ratio of 1.76. This is in the lower half of the industry: MCO underperforms 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.
- With a decent Current ratio value of 1.84, MCO is doing good in the industry, outperforming 72.77% of the companies in the same industry.
- 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.
- With a decent Quick ratio value of 1.84, MCO is doing good in the industry, outperforming 72.77% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing by 8.53% on average over the past years. This is quite good.
- 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
- Based on estimates for the next years, MCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.76% on average per year.
- MCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.37% yearly.
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
- A Price/Earnings ratio of 38.82 indicates a quite expensive valuation of MCO.
- Compared to the rest of the industry, the Price/Earnings ratio of MCO indicates a slightly more expensive valuation: MCO is more expensive than 74.47% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.54. MCO is valued slightly more expensive when compared to this.
- A Price/Forward Earnings ratio of 32.76 indicates a quite expensive valuation of MCO.
- Based on the Price/Forward Earnings ratio, MCO is valued a bit more expensive than 69.79% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of MCO to the average of the S&P500 Index (24.31), we can say MCO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.82 | ||
| Fwd PE | 32.76 |
4.2 Price Multiples
- MCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MCO is cheaper than 67.66% 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 | 40.23 | ||
| EV/EBITDA | 26.87 |
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.
- A more expensive valuation may be justified as MCO's earnings are expected to grow with 13.99% in the coming years.
PEG (NY)2.07
PEG (5Y)4.55
EPS Next 2Y15.01%
EPS Next 3Y13.99%
5. Dividend
5.1 Amount
- MCO has a yearly dividend return of 0.71%, which is pretty low.
- MCO's Dividend Yield is slightly below the industry average, which is at 6.19.
- With a Dividend Yield of 0.71, MCO pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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
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 2Y15.01%
EPS Next 3Y13.99%
NYSE:MCO (1/16/2026, 11:49:09 AM)
540.77
+1.16 (+0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-22 2025-10-22/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners79.21%
Inst Owner Change0.2%
Ins Owners0.06%
Ins Owner Change-0.46%
Market Cap96.47B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts76.55
Price Target555.07 (2.64%)
Short Float %1.53%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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)0.39%
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 | 38.82 | ||
| Fwd PE | 32.76 | ||
| P/S | 12.86 | ||
| P/FCF | 40.23 | ||
| P/OCF | 35.51 | ||
| P/B | 24.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.87 |
EPS(TTM)13.93
EY2.58%
EPS(NY)16.51
Fwd EY3.05%
FCF(TTM)13.44
FCFY2.49%
OCF(TTM)15.23
OCFY2.82%
SpS42.05
BVpS22.18
TBVpS-24.8
PEG (NY)2.07
PEG (5Y)4.55
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 38.82 and the Price/Book (PB) ratio is 24.38.
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%.