Market Cap
US$58.8b
Last Updated
2021/04/13 22:20 UTC
Data Sources
Company Financials +
Executive Summary
Moody's Corporation operates as an integrated risk assessment firm worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with adequate balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Moody's's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MCO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MCO's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
1.8%
MCO
0.9%
US Capital Markets
1.3%
US Market
1 Year Return
32.6%
MCO
63.0%
US Capital Markets
53.9%
US Market
Return vs Industry: MCO underperformed the US Capital Markets industry which returned 63% over the past year.
Return vs Market: MCO underperformed the US Market which returned 53.9% over the past year.
Shareholder returns
| MCO | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.8% | 0.9% | 1.3% |
| 30 Day | 8.1% | 0.8% | 2.8% |
| 90 Day | 14.9% | 9.3% | 6.6% |
| 1 Year | 33.7%32.6% | 66.7%63.0% | 56.6%53.9% |
| 3 Year | 95.5%89.9% | 52.9%41.8% | 62.7%52.3% |
| 5 Year | 234.4%216.5% | 149.1%118.1% | 120.5%95.9% |
Long-Term Price Volatility Vs. Market
How volatile is Moody's's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
The Moody's (NYSE:MCO) Share Price Has Gained 221%, So Why Not Pay It Some Attention?3 weeks ago | Simply Wall St
Have Insiders Sold Moody's Corporation (NYSE:MCO) Shares Recently?Valuation
Is Moody's undervalued compared to its fair value and its price relative to the market?
33.25x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MCO ($315.17) is trading above our estimate of fair value ($277.77)
Significantly Below Fair Value: MCO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MCO is poor value based on its PE Ratio (33.3x) compared to the US Capital Markets industry average (25x).
PE vs Market: MCO is poor value based on its PE Ratio (33.3x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: MCO is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: MCO is good value based on its PB Ratio (37.6x) compared to the US Capital Markets industry average (68.2x).
Future Growth
How is Moody's forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
7.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCO's forecast earnings growth (7.9% per year) is above the savings rate (2%).
Earnings vs Market: MCO's earnings (7.9% per year) are forecast to grow slower than the US market (18.5% per year).
High Growth Earnings: MCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: MCO's revenue (5.7% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: MCO's revenue (5.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MCO's Return on Equity is forecast to be very high in 3 years time (107.8%).
Past Performance
How has Moody's performed over the past 5 years?
21.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCO has high quality earnings.
Growing Profit Margin: MCO's current net profit margins (33.1%) are higher than last year (29.5%).
Past Earnings Growth Analysis
Earnings Trend: MCO's earnings have grown significantly by 21.4% per year over the past 5 years.
Accelerating Growth: MCO's earnings growth over the past year (24.9%) exceeds its 5-year average (21.4% per year).
Earnings vs Industry: MCO earnings growth over the past year (24.9%) exceeded the Capital Markets industry 10.4%.
Return on Equity
High ROE: Whilst MCO's Return on Equity (100.79%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is Moody's's financial position?
Financial Position Analysis
Short Term Liabilities: MCO's short term assets ($4.5B) exceed its short term liabilities ($2.2B).
Long Term Liabilities: MCO's short term assets ($4.5B) do not cover its long term liabilities ($8.4B).
Debt to Equity History and Analysis
Debt Level: MCO's debt to equity ratio (364.3%) is considered high.
Reducing Debt: MCO had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: MCO's debt is well covered by operating cash flow (33.4%).
Interest Coverage: MCO's interest payments on its debt are well covered by EBIT (16.1x coverage).
Balance Sheet
Dividend
What is Moody's current dividend yield, its reliability and sustainability?
0.79%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCO's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: MCO's dividend (0.79%) is low compared to the top 25% of dividend payers in the US market (3.5%).
Stability and Growth of Payments
Stable Dividend: MCO's dividends per share have been stable in the past 10 years.
Growing Dividend: MCO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.6%), MCO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MCO's dividends in 3 years are forecast to be well covered by earnings (23.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Rob Fauber (50 yo)
0.25
Tenure
US$5,794,932
Compensation
Mr. Robert Scott Fauber, also known as Rob, has been President and Chief Executive Officer at Moody’s Corporation since January 1, 2021. He serves as Chief Operating Officer of Moody's Corporation since No...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD5.79M) is below average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: MCO's management team is considered experienced (2.6 years average tenure).
Board Members
Experienced Board: MCO's board of directors are considered experienced (5.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MCO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Moody's Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Moody's Corporation
- Ticker: MCO
- Exchange: NYSE
- Founded: 1900
- Industry: Financial Exchanges and Data
- Sector: Diversified Financials
- Market Cap: US$58.837b
- Shares outstanding: 187.09m
- Website: https://www.moodys.com
Number of Employees
Location
- Moody's Corporation
- 7 World Trade Center
- 250 Greenwich Street
- New York
- New York
- 10007
- United States
Listings
Biography
Moody's Corporation operates as an integrated risk assessment firm worldwide. It operates in two segments, Moody’s Investors Service and Moody’s Analytics. The Moody’s Investors Service segment publishes c...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/13 22:20 |
| End of Day Share Price | 2021/04/13 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.