Market Cap
US$48.3b
Last Updated
2020/01/17 23:35 UTC
Data Sources
Company Financials +
Executive Summary
Moody's Corporation provides credit ratings; and credit, capital markets, and economic research, data, and analytical tools worldwide.
Rewards
Risk Analysis
No risks detected for MCO from our risk checks.
Snowflake Analysis
Solid track record and slightly overvalued.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.9%
MCO
2.4%
US Capital Markets
2.0%
US Market
1 Year Return
61.6%
MCO
18.9%
US Capital Markets
23.5%
US Market
Return vs Industry: MCO exceeded the US Capital Markets industry which returned 21.7% over the past year.
Return vs Market: MCO exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| MCO | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.9% | 2.4% | 2.0% |
| 30 Day | 8.9% | 4.1% | 4.3% |
| 90 Day | 18.6% | 14.6% | 12.2% |
| 1 Year | 63.3%61.6% | 21.3%18.9% | 26.1%23.5% |
| 3 Year | 163.7%155.0% | 48.9%40.5% | 53.1%43.2% |
| 5 Year | 192.3%174.7% | 96.0%77.8% | 75.5%56.1% |
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
1 day ago | Simply Wall St
Is Moody's's (NYSE:MCO) 173% Share Price Increase Well Justified?2 weeks ago | Simply Wall St
I Ran A Stock Scan For Earnings Growth And Moody's (NYSE:MCO) Passed With Ease1 month ago | Simply Wall St
Here's What Moody's Corporation's (NYSE:MCO) P/E Is Telling UsValuation
Is Moody's undervalued compared to its fair value and its price relative to the market?
35.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MCO ($249.43) is trading below our estimate of fair value ($402.55)
Significantly Below Fair Value: MCO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MCO is poor value based on its PE Ratio (36.6x) compared to the Capital Markets industry average (36.1x).
PE vs Market: MCO is poor value based on its PE Ratio (36.1x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: MCO is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: MCO is overvalued based on its PB Ratio (99.6x) compared to the US Capital Markets industry average (6.6x).
Next Steps
Future Growth
How is Moody's forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
11.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCO's forecast earnings growth (10.5% per year) is above the savings rate (1.7%).
Earnings vs Market: MCO's earnings (10.5% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: MCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: MCO's revenue (6% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: MCO's revenue (6% 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 (224%).
Next Steps
Past Performance
How has Moody's performed over the past 5 years?
7.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCO has high quality earnings.
Growing Profit Margin: MCO's current net profit margins (28.2%) are higher than last year (23.9%).
Past Earnings Growth Analysis
Earnings Trend: MCO's earnings have grown by 7.1% per year over the past 5 years.
Accelerating Growth: MCO's earnings growth over the past year (21%) exceeds its 5-year average (7.1% per year).
Earnings vs Industry: MCO earnings growth over the past year (21%) exceeded the Capital Markets industry 20.6%.
Return on Equity
High ROE: Whilst MCO's Return on Equity (187.84%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Moody's's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: MCO has a low level of unsold assets or inventory.
Debt Coverage by Assets: MCO's debt is not covered by short term assets (assets are 0.6x debt).
Financial Institutions Analysis
Asset Level: MCO's level of assets compared to its equity is moderate.
Allowance for Bad Loans: Insufficient data to determine if MCO has a sufficient allowance for bad loans.
Low Risk Liabilities: MCO reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if MCO has an acceptable proportion of non-loan assets held.
Low Risk Deposits: MCO has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if MCO has an appropriate level of bad loans.
Next Steps
Dividend
What is Moody's's current dividend yield, its reliability and sustainability?
0.78%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MCO's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: MCO's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: MCO is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: MCO is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: MCO is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MCO's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of Moody's's salary, the management and board of directors tenure and is there insider trading?
1.6yrs
Average management tenure
CEO
Ray McDaniel (61yo)
14.8yrs
Tenure
US$10,556,511
Compensation
Mr. Raymond W. McDaniel, Jr., also known as Ray, has been the President at Moody's Corporation since April 2012 and serves as its Chief Executive Officer since April 26, 2005 . In this role, Mr. McDaniel i ...
CEO Compensation Analysis
Compensation vs Market: Ray's total compensation ($USD10.56M) is about average for companies of similar size in the US market ($USD10.76M).
Compensation vs Earnings: Ray's compensation has been consistent with company performance over the past year.
Management Age and Tenure
1.6yrs
Average Tenure
58yo
Average Age
Experienced Management: MCO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Age and Tenure
6.9yrs
Average Tenure
64yo
Average Age
Experienced Board: MCO's board of directors are considered experienced (6.9 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Operating Officer Chief Operating Officer |
| Shares | 920 |
| Max Price | US$187.25 |
| Entity | Individual |
| Role | Chief Operating Officer Chief Operating Officer |
| Shares | 1,380 |
| Max Price | US$184.85 |
| Entity | Individual |
| Shares | 3,959 |
| Max Price | US$184.04 |
| Entity | Individual |
| Shares | 480 |
| Max Price | US$197.27 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Ray McDaniel (61yo)
President
- Tenure: 14.8yrs
- Compensation: US$10.56m
John Goggins (58yo)
Executive VP & General Counsel
- Tenure: 19.3yrs
- Compensation: US$2.06m
Mark Almeida (59yo)
Special Advisor
- Tenure: 12.4yrs
- Compensation: US$3.45m
Jeff Hare
Senior Vice President of Risk Management
- Compensation: US$1.23m
Rob Fauber (49yo)
Chief Operating Officer
- Tenure: 0.2yrs
- Compensation: US$2.82m
Shivani Kak
Head of Investor Relations
- Tenure: 0.3yrs
Mark Kaye (39yo)
Senior VP & CFO
- Tenure: 1.4yrs
- Compensation: US$3.37m
Helene Gurian
Chief Compliance Officer
- Tenure: 2.6yrs
David Hogan
MD, Assistant Controller
- Tenure: 1.6yrs
Mona Breed
Senior VP & Chief Information Officer
- Tenure: 1.3yrs
Board Members
Vince Forlenza (66yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$258.68k
Hank McKinnell (76yo)
Chairman of the Board
- Tenure: 7.8yrs
- Compensation: US$415.08k
Basil Anderson (74yo)
Independent Director
- Tenure: 15.8yrs
- Compensation: US$310.06k
Ray McDaniel (61yo)
President
- Tenure: 14.8yrs
- Compensation: US$10.56m
Bruce Van Saun (62yo)
Independent Director
- Tenure: 3.8yrs
- Compensation: US$285.06k
Jorge Bermudez (67yo)
Independent Director
- Tenure: 8.8yrs
- Compensation: US$285.06k
Kathy Hill (62yo)
Independent Director
- Tenure: 8.3yrs
- Compensation: US$310.06k
Gerrit Zalm (67yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$258.68k
Thérèse Esperdy (58yo)
Non-Executive Director
- Tenure: 0.8yrs
Leslie Seidman (57yo)
Independent Director
- Tenure: 6.1yrs
- Compensation: US$310.06k
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$48.330b
- Shares outstanding: 188.75m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MCO | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 1998 |
| DUT | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1998 |
| MCO * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 1998 |
| 0K36 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jun 1998 |
| MOCO | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jun 1998 |
| MCOR34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REPR 0.25 COM USD0.01 | BR | BRL | May 2019 |
Biography
Moody's Corporation provides credit ratings; and credit, capital markets, and economic research, data, and analytical tools worldwide. It operates through two segments, Moody’s Investors Service and Moody’s Analytics. The Moody’s Investors Service segment publishes credit ratings on various debt obligations and entities that issue such obligations, such as various corporate and governmental obligations, structured finance securities, and commercial paper programs. This segment provides ratings in approximately 130 countries. Its ratings are disseminated through press releases to the public through print and electronic media, including the Internet and real-time information systems used by securities traders and investors. As of December 31, 2018, this segment had ratings relationships with approximately 4,800 non-financial corporate issuers; 4,100 financial institutions issuers; 17,600 sovereign, sub-sovereign, and supranational public finance issuers; and 1,000 infrastructure and project finance issuers, as well as 9,600 structured finance transactions. The Moody’s Analytics segment develops a range of products and services that support financial analysis and risk management activities of institutional participants in financial markets; and offers subscription based research, data, and analytical products comprising credit ratings, credit research, quantitative credit scores and other analytical tools, economic research and forecasts, business intelligence and company information products, and commercial real estate data and analytical tools. It also offers software solutions, as well as related risk management services; and offshore analytical and research services with learning solutions and certification programs. The company was formerly known as Dun and Bradstreet Company and changed its name to Moody's Corporation in September 2000. Moody's Corporation was founded in 1900 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/17 23:35 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.