MOODY'S CORP (MCO) Fundamental Analysis & Valuation

NYSE:MCO • US6153691059

471.01 USD
+6.71 (+1.45%)
At close: Mar 4, 2026
471.01 USD
0 (0%)
After Hours: 3/4/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

6

MCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. MCO gets an excellent profitability rating and is at the same time showing great financial health properties. MCO is quite expensive at the moment. It does show a decent growth rate. With these ratings, MCO could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

9

1. MCO Profitability Analysis

1.1 Basic Checks

  • In the past year MCO was profitable.
  • In the past year MCO had a positive cash flow from operations.
  • Each year in the past 5 years MCO has 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

  • MCO's Return On Assets of 15.53% is amongst the best of the industry. MCO outperforms 94.96% of its industry peers.
  • Looking at the Return On Equity, with a value of 60.66%, MCO belongs to the top of the industry, outperforming 98.74% of the companies in the same industry.
  • MCO's Return On Invested Capital of 20.93% is amongst the best of the industry. MCO outperforms 97.06% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MCO is significantly above the industry average of 7.26%.
  • 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

  • MCO's Profit Margin of 31.86% is fine compared to the rest of the industry. MCO outperforms 76.05% of its industry peers.
  • MCO's Profit Margin has been stable in the last couple of years.
  • MCO has a better Operating Margin (44.86%) than 81.93% of its industry peers.
  • In the last couple of years the Operating Margin of MCO has remained more or less at the same level.
  • MCO has a better Gross Margin (74.44%) than 81.93% of its industry peers.
  • MCO's Gross Margin has been stable in the last couple of years.
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

  • Compared to 1 year ago, MCO has less shares outstanding
  • MCO has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, MCO has an improved debt to assets ratio.
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

  • An Altman-Z score of 7.18 indicates that MCO is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 7.18, MCO belongs to the best of the industry, outperforming 90.34% of the companies in the same industry.
  • MCO has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as MCO would need 2.72 years to pay back of all of its debts.
  • The Debt to FCF ratio of MCO (2.72) is better than 81.09% of its industry peers.
  • A Debt/Equity ratio of 1.73 is on the high side and indicates that MCO has dependencies on debt financing.
  • MCO has a worse Debt to Equity ratio (1.73) than 74.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.73
Debt/FCF 2.72
Altman-Z 7.18
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.
  • With a decent Current ratio value of 1.74, MCO is doing good in the industry, outperforming 71.85% of the companies in the same industry.
  • A Quick Ratio of 1.74 indicates that MCO should not have too much problems paying its short term obligations.
  • MCO has a Quick ratio of 1.74. This is in the better half of the industry: MCO outperforms 71.85% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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.
  • Measured over the past years, MCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.07% on average per year.
  • Looking at the last year, MCO shows a quite strong growth in Revenue. The Revenue has grown by 8.89% in the last year.
  • Measured over the past years, MCO shows a small growth in Revenue. The Revenue has been growing by 7.52% on average per year.
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 11.32% on average over the next years. This is quite good.
  • Based on estimates for the next years, MCO will show a small growth in Revenue. The Revenue will grow by 7.28% on average per year.
EPS Next Y10.75%
EPS Next 2Y11.43%
EPS Next 3Y11.4%
EPS Next 5Y11.32%
Revenue Next Year7.71%
Revenue Next 2Y7.82%
Revenue Next 3Y7.42%
Revenue Next 5Y7.28%

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.
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 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 5 10 15 20

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2

4. MCO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 31.51, MCO can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, MCO is valued a bit more expensive than the industry average as 74.37% of the companies are valued more cheaply.
  • MCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
  • MCO is valuated quite expensively with a Price/Forward Earnings ratio of 28.45.
  • MCO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MCO is more expensive than 66.39% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 25.11. MCO is around the same levels.
Industry RankSector Rank
PE 31.51
Fwd PE 28.45
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCO indicates a somewhat cheap valuation: MCO is cheaper than 66.81% of the companies listed in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as MCO.
Industry RankSector Rank
P/FCF 32.63
EV/EBITDA 22.15
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.
  • The excellent profitability rating of MCO may justify a higher PE ratio.
PEG (NY)2.93
PEG (5Y)3.9
EPS Next 2Y11.43%
EPS Next 3Y11.4%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. MCO Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.86%, MCO is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 6.54, MCO is paying slightly less dividend.
  • With a Dividend Yield of 0.86, MCO pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.86%

5.2 History

  • The dividend of MCO is nicely growing with an annual growth rate of 11.82%!
  • 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)11.82%
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

  • 28.51% of the earnings are spent on dividend by MCO. This is a low number and 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 2Y11.43%
EPS Next 3Y11.4%
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 (3/4/2026, 8:04:00 PM)

After market: 471.01 0 (0%)

471.01

+6.71 (+1.45%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-18
Earnings (Next)04-20
Inst Owners79.21%
Inst Owner Change-0.12%
Ins Owners0.06%
Ins Owner Change1.68%
Market Cap84.03B
Revenue(TTM)7.72B
Net Income(TTM)2.46B
Analysts77.24
Price Target561.25 (19.16%)
Short Float %1.28%
Short Ratio1.6
Dividend
Industry RankSector Rank
Dividend Yield 0.86%
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)-0.28%
PT rev (3m)1.17%
EPS NQ rev (1m)4.36%
EPS NQ rev (3m)4.46%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)2.09%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.29%
Valuation
Industry RankSector Rank
PE 31.51
Fwd PE 28.45
P/S 10.89
P/FCF 32.63
P/OCF 28.97
P/B 20.73
P/tB N/A
EV/EBITDA 22.15
EPS(TTM)14.95
EY3.17%
EPS(NY)16.56
Fwd EY3.52%
FCF(TTM)14.43
FCFY3.06%
OCF(TTM)16.26
OCFY3.45%
SpS43.26
BVpS22.72
TBVpS-23.43
PEG (NY)2.93
PEG (5Y)3.9
Graham Number87.43
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 7.18
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 Y10.75%
EPS Next 2Y11.43%
EPS Next 3Y11.4%
EPS Next 5Y11.32%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y12.17%
Revenue growth 5Y7.52%
Sales Q2Q%12.98%
Revenue Next Year7.71%
Revenue Next 2Y7.82%
Revenue Next 3Y7.42%
Revenue Next 5Y7.28%
EBIT growth 1Y16.29%
EBIT growth 3Y20.13%
EBIT growth 5Y7.19%
EBIT Next Year22.73%
EBIT Next 3Y13.31%
EBIT Next 5Y11.49%
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 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 31.51 and the Price/Book (PB) ratio is 20.73.


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%.