MOODY'S CORP (MCO) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:MCO • US6153691059
515.56 USD
+0.11 (+0.02%)
At close: Jan 30, 2026
522.375 USD
+6.82 (+1.32%)
After Hours: 1/30/2026, 8:04:00 PM
MCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 238 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.
- 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 94.51% of its industry peers.
- MCO has a better Return On Equity (56.71%) than 98.73% 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 96.62% 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 7.28%.
- The 3 year average ROIC (16.07%) for MCO is below the current ROIC(20.43%), indicating increased profibility in the last year.
| Industry 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
- The Profit Margin of MCO (29.92%) is better than 74.26% 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 better Operating Margin (43.81%) than 78.90% 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 81.86% of the companies in the same industry.
- MCO's Gross Margin has been stable in the last couple of years.
| 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
- MCO has less shares outstanding than it did 1 year ago.
- 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.
- Looking at the Debt to FCF ratio, with a value of 2.91, MCO is in the better half of the industry, outperforming 79.32% of the companies in the same industry.
- MCO has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
- MCO has a Debt to Equity ratio of 1.76. This is in the lower half of the industry: MCO underperforms 75.11% 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
- MCO has a Current 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 Current ratio of MCO (1.84) is better than 72.15% 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 72.15% 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.
- 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.
- Looking at the last year, MCO shows a quite strong growth in Revenue. The Revenue has grown by 8.77% in the last year.
- 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
- 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.
- Based on estimates for the next years, MCO will show a small growth in Revenue. The Revenue will grow by 7.37% on average per year.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 37.01, the valuation of MCO can be described as expensive.
- 77.64% 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 28.32. MCO is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 31.19, the valuation of MCO can be described as expensive.
- Based on the Price/Forward Earnings ratio, MCO is valued a bit more expensive than 69.20% of the companies in the same industry.
- MCO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.01 | ||
| Fwd PE | 31.19 |
4.2 Price Multiples
- MCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MCO is cheaper than 67.93% 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 | 38.36 | ||
| EV/EBITDA | 25.73 |
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 14.09% in the coming years.
PEG (NY)1.95
PEG (5Y)4.34
EPS Next 2Y15.08%
EPS Next 3Y14.09%
5. Dividend
5.1 Amount
- MCO has a yearly dividend return of 0.73%, which is pretty low.
- MCO's Dividend Yield is slightly below the industry average, which is at 6.02.
- Compared to an average S&P500 Dividend Yield of 1.83, MCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector 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 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
- 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%
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 37.01 and the Price/Book (PB) ratio is 23.24.
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%.