MOODY'S CORP (MCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCO - US6153691059 - Common Stock
487.84 USD
+0.6 (+0.12%)
487.84 USD
0 (0%)
Taking everything into account, MCO scores 5 out of 10 in our fundamental rating. MCO was compared to 238 industry peers in the Capital Markets industry. While MCO has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, MCO is valued expensive at the moment.
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
The Return On Assets of MCO (14.56%) is better than 95.38% of its industry peers.
MCO has a better Return On Equity (56.71%) than 98.74% of its industry peers.
The Return On Invested Capital of MCO (20.43%) is better than 97.06% of its industry peers.
MCO had an Average Return On Invested Capital over the past 3 years of 16.07%. This is significantly above the industry average of 6.95%.
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
The Profit Margin of MCO (29.92%) is better than 75.63% of its industry peers.
MCO's Profit Margin has been stable in the last couple of years.
MCO has a better Operating Margin (43.81%) than 79.41% of its industry peers.
In the last couple of years the Operating Margin of MCO has remained more or less at the same level.
Looking at the Gross Margin, with a value of 73.75%, MCO belongs to the top of the industry, outperforming 81.51% 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
Compared to 1 year ago, MCO has less shares outstanding
MCO has less shares outstanding than it did 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.
MCO's Debt to FCF ratio of 2.91 is fine compared to the rest of the industry. MCO outperforms 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: 75.63% of the companies in the same industry are doing better.
| 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.
The Current ratio of MCO (1.84) is better than 71.01% of its industry peers.
A Quick Ratio of 1.84 indicates that MCO should not have too much problems paying its short term obligations.
MCO has a Quick ratio of 1.84. This is in the better half of the industry: MCO outperforms 71.01% 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.
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%.
MCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.98% yearly.
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 Y18.57%
EPS Next 2Y14.89%
EPS Next 3Y13.9%
EPS Next 5Y12.76%
Revenue Next Year8.22%
Revenue Next 2Y7.89%
Revenue Next 3Y7.9%
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.
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
The Price/Earnings ratio is 35.02, which means the current valuation is very expensive for MCO.
Based on the Price/Earnings ratio, MCO is valued a bit more expensive than 75.21% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, MCO is valued a bit more expensive.
A Price/Forward Earnings ratio of 29.62 indicates a quite expensive valuation of MCO.
Based on the Price/Forward Earnings ratio, MCO is valued a bit more expensive than the industry average as 69.75% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of MCO to the average of the S&P500 Index (36.22), we can say MCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.02 | ||
| Fwd PE | 29.62 |
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 67.23% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.29 | ||
| EV/EBITDA | 24.41 |
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.
A more expensive valuation may be justified as MCO's earnings are expected to grow with 13.90% in the coming years.
PEG (NY)1.89
PEG (5Y)4.11
EPS Next 2Y14.89%
EPS Next 3Y13.9%
5. Dividend
5.1 Amount
MCO has a yearly dividend return of 0.77%, which is pretty low.
Compared to an average industry Dividend Yield of 8.39, MCO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.32, MCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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.
The dividend of MCO decreased recently.
Dividend Growth(5Y)11.37%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
30.70% of the earnings are spent on dividend by MCO. This is a low number and 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 2Y14.89%
EPS Next 3Y13.9%
487.84
+0.6 (+0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.06%
Inst Owner Change-0.46%
Ins Owners0.06%
Ins Owner Change-0.5%
Market Cap87.03B
Revenue(TTM)7.50B
Net Income(TTM)2.24B
Analysts76.77
Price Target554.75 (13.72%)
Short Float %1.2%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend3.42
Dividend Growth(5Y)11.37%
DP30.7%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0.63%
PT rev (3m)0.77%
EPS NQ rev (1m)2.45%
EPS NQ rev (3m)9.55%
EPS NY rev (1m)3.81%
EPS NY rev (3m)5.35%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.02%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.02 | ||
| Fwd PE | 29.62 | ||
| P/S | 11.6 | ||
| P/FCF | 36.29 | ||
| P/OCF | 32.03 | ||
| P/B | 21.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.41 |
EPS(TTM)13.93
EY2.86%
EPS(NY)16.47
Fwd EY3.38%
FCF(TTM)13.44
FCFY2.76%
OCF(TTM)15.23
OCFY3.12%
SpS42.05
BVpS22.18
TBVpS-24.8
PEG (NY)1.89
PEG (5Y)4.11
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 Y18.57%
EPS Next 2Y14.89%
EPS Next 3Y13.9%
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 2Y7.89%
Revenue Next 3Y7.9%
Revenue Next 5Y7.37%
EBIT growth 1Y13.66%
EBIT growth 3Y1.54%
EBIT growth 5Y7.49%
EBIT Next Year21.3%
EBIT Next 3Y13.49%
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.
What is the valuation status of MOODY'S CORP (MCO) stock?
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.
Can you provide the PE and PB ratios for MCO stock?
The Price/Earnings (PE) ratio for MOODY'S CORP (MCO) is 35.02 and the Price/Book (PB) ratio is 21.99.
Can you provide the financial health for MCO stock?
The financial health rating of MOODY'S CORP (MCO) is 4 / 10.