MOODY'S CORP (MCO) Stock Fundamental Analysis
NYSE:MCO - New York Stock Exchange, Inc. - US6153691059 - Common Stock - Currency: USD
Overall MCO gets a fundamental rating of 6 out of 10. We evaluated MCO against 223 industry peers in the Capital Markets industry. MCO has an excellent profitability rating, but there are some minor concerns on its financial health. MCO is valued quite expensively, but it does show have an excellent growth rating. With these ratings, MCO could be worth investigating further for growth investing!.
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.
MCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MCO (12.70%) is better than 92.20% of its industry peers.
MCO's Return On Equity of 51.29% is amongst the best of the industry. MCO outperforms 99.08% of its industry peers.
With an excellent Return On Invested Capital value of 18.99%, MCO belongs to the best of the industry, outperforming 96.79% of the companies in the same industry.
MCO had an Average Return On Invested Capital over the past 3 years of 16.02%. This is significantly above the industry average of 6.74%.
The last Return On Invested Capital (18.99%) for MCO is above the 3 year average (16.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.7% | ||
| ROE | 51.29% | ||
| ROIC | 18.99% |
ROA(3y)11.88%
ROA(5y)12.77%
ROE(3y)61.39%
ROE(5y)105.97%
ROIC(3y)16.02%
ROIC(5y)17.66%
1.3 Margins
With a decent Profit Margin value of 29.05%, MCO is doing good in the industry, outperforming 71.10% of the companies in the same industry.
In the last couple of years the Profit Margin of MCO has declined.
Looking at the Operating Margin, with a value of 41.92%, MCO is in the better half of the industry, outperforming 72.02% of the companies in the same industry.
MCO's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 72.90%, MCO is doing good in the industry, outperforming 75.69% 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 | 41.92% | ||
| PM (TTM) | 29.05% | ||
| GM | 72.9% |
OM growth 3Y-6.21%
OM growth 5Y-2.8%
PM growth 3Y-6.38%
PM growth 5Y-1.62%
GM growth 3Y-0.49%
GM growth 5Y-0.13%
2. Health
2.1 Basic Checks
MCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MCO has been reduced compared to 5 years ago.
The debt/assets ratio for MCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.13 indicates that MCO is not in any danger for bankruptcy at the moment.
MCO has a Altman-Z score of 7.13. This is amongst the best in the industry. MCO outperforms 92.20% of its industry peers.
MCO has a debt to FCF ratio of 3.26. This is a good value and a sign of high solvency as MCO would need 3.26 years to pay back of all of its debts.
MCO's Debt to FCF ratio of 3.26 is fine compared to the rest of the industry. MCO outperforms 72.94% 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: 74.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 7.13 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MCO has a Current Ratio of 1.67. 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 Current ratio of 1.67. This is in the better half of the industry: MCO outperforms 65.60% of its industry peers.
A Quick Ratio of 1.67 indicates that MCO should not have too much problems paying its short term obligations.
MCO has a Quick ratio of 1.67. This is in the better half of the industry: MCO outperforms 66.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
MCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.29%, which is quite impressive.
MCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.07% yearly.
MCO shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.43%.
The Revenue has been growing slightly by 5.90% on average over the past years.
EPS 1Y (TTM)29.29%
EPS 3Y-0.76%
EPS 5Y6.07%
EPS Q2Q%32.1%
Revenue 1Y (TTM)20.43%
Revenue growth 3Y3.27%
Revenue growth 5Y5.9%
Sales Q2Q%23.17%
3.2 Future
The Earnings Per Share is expected to grow by 13.12% on average over the next years. This is quite good.
Based on estimates for the next years, MCO will show a quite strong growth in Revenue. The Revenue will grow by 8.89% on average per year.
EPS Next Y25.79%
EPS Next 2Y17.18%
EPS Next 3Y15.9%
EPS Next 5Y13.12%
Revenue Next Year19.16%
Revenue Next 2Y12.6%
Revenue Next 3Y11.31%
Revenue Next 5Y8.89%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 40.91 indicates a quite expensive valuation of MCO.
Based on the Price/Earnings ratio, MCO is valued a bit more expensive than the industry average as 77.52% of the companies are valued more cheaply.
MCO is valuated rather expensively when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
MCO is valuated quite expensively with a Price/Forward Earnings ratio of 36.23.
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 76.15% 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 (92.74), we can say MCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.91 | ||
| Fwd PE | 36.23 |
4.2 Price Multiples
62.39% of the companies in the same industry are more expensive than MCO, based on the Enterprise Value to EBITDA ratio.
MCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.42 | ||
| EV/EBITDA | 28.17 |
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 15.90% in the coming years.
PEG (NY)1.59
PEG (5Y)6.74
EPS Next 2Y17.18%
EPS Next 3Y15.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, MCO is not a good candidate for dividend investing.
MCO's Dividend Yield is slightly below the industry average, which is at 9.39.
With a Dividend Yield of 0.68, MCO pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
5.3 Sustainability
MCO pays out 30.20% 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.
DP30.2%
EPS Next 2Y17.18%
EPS Next 3Y15.9%
MOODY'S CORP
NYSE:MCO (2/5/2025, 10:48:34 AM)
493.005
-0.12 (-0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.78%
Inst Owner Change-1.3%
Ins Owners0.08%
Ins Owner Change-0.31%
Market Cap89.33B
Analysts75.56
Price Target519.78 (5.43%)
Short Float %1.2%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend3.09
Dividend Growth(5Y)11.82%
DP30.2%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.45%
Min EPS beat(2)7.68%
Max EPS beat(2)11.21%
EPS beat(4)3
Avg EPS beat(4)5.6%
Min EPS beat(4)-6.41%
Max EPS beat(4)11.21%
EPS beat(8)7
Avg EPS beat(8)9.22%
EPS beat(12)7
Avg EPS beat(12)4.46%
EPS beat(16)10
Avg EPS beat(16)6.99%
Revenue beat(2)2
Avg Revenue beat(2)4.86%
Min Revenue beat(2)4.31%
Max Revenue beat(2)5.41%
Revenue beat(4)3
Avg Revenue beat(4)3.13%
Min Revenue beat(4)-1.33%
Max Revenue beat(4)5.41%
Revenue beat(8)6
Avg Revenue beat(8)2.38%
Revenue beat(12)8
Avg Revenue beat(12)0.8%
Revenue beat(16)12
Avg Revenue beat(16)1.99%
PT rev (1m)1.01%
PT rev (3m)2.58%
EPS NQ rev (1m)12.08%
EPS NQ rev (3m)12.66%
EPS NY rev (1m)1.79%
EPS NY rev (3m)1.9%
Revenue NQ rev (1m)6.05%
Revenue NQ rev (3m)6.39%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.91 | ||
| Fwd PE | 36.23 | ||
| P/S | 12.95 | ||
| P/FCF | 38.42 | ||
| P/OCF | 33.83 | ||
| P/B | 22.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.17 |
EPS(TTM)12.05
EY2.44%
EPS(NY)13.61
Fwd EY2.76%
FCF(TTM)12.83
FCFY2.6%
OCF(TTM)14.58
OCFY2.96%
SpS38.06
BVpS21.55
TBVpS-23.25
PEG (NY)1.59
PEG (5Y)6.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.7% | ||
| ROE | 51.29% | ||
| ROCE | 23.07% | ||
| ROIC | 18.99% | ||
| ROICexc | 25.54% | ||
| ROICexgc | 198.2% | ||
| OM | 41.92% | ||
| PM (TTM) | 29.05% | ||
| GM | 72.9% | ||
| FCFM | 33.72% |
ROA(3y)11.88%
ROA(5y)12.77%
ROE(3y)61.39%
ROE(5y)105.97%
ROIC(3y)16.02%
ROIC(5y)17.66%
ROICexc(3y)19.16%
ROICexc(5y)22.19%
ROICexgc(3y)101.24%
ROICexgc(5y)125.41%
ROCE(3y)19.46%
ROCE(5y)21.45%
ROICexcg growth 3Y-19.34%
ROICexcg growth 5Y-30.92%
ROICexc growth 3Y-11.82%
ROICexc growth 5Y-8.18%
OM growth 3Y-6.21%
OM growth 5Y-2.8%
PM growth 3Y-6.38%
PM growth 5Y-1.62%
GM growth 3Y-0.49%
GM growth 5Y-0.13%
F-Score8
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 3.26 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 76.14% | ||
| Cap/Sales | 4.58% | ||
| Interest Coverage | 10.14 | ||
| Cash Conversion | 79.89% | ||
| Profit Quality | 116.08% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 7.13 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)70.75%
Cap/Depr(5y)58.71%
Cap/Sales(3y)4%
Cap/Sales(5y)3.07%
Profit Quality(3y)95.98%
Profit Quality(5y)103.16%
High Growth Momentum
Growth
EPS 1Y (TTM)29.29%
EPS 3Y-0.76%
EPS 5Y6.07%
EPS Q2Q%32.1%
EPS Next Y25.79%
EPS Next 2Y17.18%
EPS Next 3Y15.9%
EPS Next 5Y13.12%
Revenue 1Y (TTM)20.43%
Revenue growth 3Y3.27%
Revenue growth 5Y5.9%
Sales Q2Q%23.17%
Revenue Next Year19.16%
Revenue Next 2Y12.6%
Revenue Next 3Y11.31%
Revenue Next 5Y8.89%
EBIT growth 1Y39.12%
EBIT growth 3Y-3.13%
EBIT growth 5Y2.93%
EBIT Next Year41.56%
EBIT Next 3Y18.58%
EBIT Next 5Y13.24%
FCF growth 1Y105.75%
FCF growth 3Y-2.73%
FCF growth 5Y6.52%
OCF growth 1Y89.18%
OCF growth 3Y0.08%
OCF growth 5Y8.04%