Market Cap
US$52.7b
Last Updated
2020/09/21 06:20 UTC
Data Sources
Company Financials +
Executive Summary
Moody's Corporation provides credit ratings and assessment services; and credit, capital markets, and economic research, data, and analytical tools worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with adequate balance sheet.
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
-2.7%
MCO
0.7%
US Capital Markets
0.08%
US Market
1 Year Return
30.4%
MCO
2.6%
US Capital Markets
12.8%
US Market
Return vs Industry: MCO exceeded the US Capital Markets industry which returned 2.6% over the past year.
Return vs Market: MCO exceeded the US Market which returned 12.8% over the past year.
Shareholder returns
| MCO | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.7% | 0.7% | 0.08% |
| 30 Day | -1.3% | -1.9% | -1.8% |
| 90 Day | 1.4% | 0.4% | 7.2% |
| 1 Year | 31.5%30.4% | 5.2%2.6% | 15.3%12.8% |
| 3 Year | 108.4%102.3% | 22.2%12.7% | 39.2%29.9% |
| 5 Year | 207.3%189.8% | 71.6%49.5% | 88.3%67.1% |
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 week ago | Simply Wall St
Introducing Moody's (NYSE:MCO), The Stock That Zoomed 171% In The Last Five Years1 month ago | Simply Wall St
Have Moody's Corporation (NYSE:MCO) Insiders Been Selling Their Stock?1 month ago | Simply Wall St
How Much Is Moody's Corporation (NYSE:MCO) Paying Its CEO?Valuation
Is Moody's undervalued compared to its fair value and its price relative to the market?
30.44x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MCO ($280.82) is trading above our estimate of fair value ($244.47)
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 (30.4x) compared to the US Capital Markets industry average (22.4x).
PE vs Market: MCO is poor value based on its PE Ratio (30.4x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: MCO is poor value based on its PEG Ratio (4.1x)
Price to Book Ratio
PB vs Industry: MCO is overvalued based on its PB Ratio (50.6x) compared to the US Capital Markets industry average (4.3x).
Next Steps
Future Growth
How is Moody's forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
7.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCO's forecast earnings growth (7.4% per year) is above the savings rate (2.2%).
Earnings vs Market: MCO's earnings (7.4% per year) are forecast to grow slower than the US market (23.1% per year).
High Growth Earnings: MCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: MCO's revenue (4.9% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: MCO's revenue (4.9% 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 (110.7%).
Next Steps
Past Performance
How has Moody's performed over the past 5 years?
16.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCO has high quality earnings.
Growing Profit Margin: MCO's current net profit margins (33.4%) are higher than last year (27.7%).
Past Earnings Growth Analysis
Earnings Trend: MCO's earnings have grown by 16.3% per year over the past 5 years.
Accelerating Growth: MCO's earnings growth over the past year (39.5%) exceeds its 5-year average (16.3% per year).
Earnings vs Industry: MCO earnings growth over the past year (39.5%) exceeded the Capital Markets industry 8.2%.
Return on Equity
High ROE: Whilst MCO's Return on Equity (140.66%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Moody's's financial position?
Financial Position Analysis
Short Term Liabilities: MCO's short term assets ($4.0B) exceed its short term liabilities ($1.9B).
Long Term Liabilities: MCO's short term assets ($4.0B) do not cover its long term liabilities ($8.2B).
Debt to Equity History and Analysis
Debt Level: MCO's debt to equity ratio (513%) 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 (29.9%).
Interest Coverage: MCO's interest payments on its debt are well covered by EBIT (15.1x coverage).
Balance Sheet
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Dividend
What is Moody's current dividend yield, its reliability and sustainability?
0.80%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCO's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).
High Dividend: MCO's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (4.7%).
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.
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Ray McDaniel (62 yo)
15.42yrs
Tenure
US$13,751,632
Compensation
Mr. Raymond W. McDaniel, Jr., also known as Ray, has been the President at Moody's Corporation since April 2012 and serves as its Chief Executive Officer since April 26, 2005 . In this role, Mr. McDaniel i ...
CEO Compensation Analysis
Compensation vs Market: Ray's total compensation ($USD13.75M) is about average for companies of similar size in the US market ($USD11.35M).
Compensation vs Earnings: Ray's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 15.42yrs | US$13.75m | 0.13% $ 68.6m | |
| Senior VP & CFO | 2.08yrs | US$2.84m | 0.0040% $ 2.1m | |
| Executive VP & COO | 0.83yr | US$5.44m | 0.027% $ 14.3m | |
| Executive VP & General Counsel | 19.92yrs | US$3.04m | 0.0098% $ 5.2m | |
| Special Advisor | 13.08yrs | US$3.56m | 0.092% $ 48.7m | |
| President of Moody's Analytics | 0.83yr | US$2.56m | 0.0043% $ 2.3m | |
| MD, Assistant Controller | 2.25yrs | no data | no data | |
| Senior VP & Chief Information Officer | 1.92yrs | no data | no data | |
| Head of Investor Relations | 1yr | no data | no data | |
| Chief Compliance Officer | 3.25yrs | no data | no data | |
| Senior Vice President of Corporate Communications | no data | no data | no data | |
| Senior VP & Chief Human Resources Officer | 3yrs | no data | 0.0033% $ 1.7m |
2.3yrs
Average Tenure
57yo
Average Age
Experienced Management: MCO's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 15.42yrs | US$13.75m | 0.13% $ 68.6m | |
| Independent Director | 2.42yrs | US$285.00k | 0.0023% $ 1.2m | |
| Independent Chairman of the Board | 8.42yrs | US$414.96k | 0.047% $ 24.9m | |
| Independent Director | 16.42yrs | US$310.00k | 0.024% $ 12.5m | |
| Independent Director | 4.5yrs | US$285.00k | 0.0033% $ 1.7m | |
| Independent Director | 9.42yrs | US$285.00k | 0.010% $ 5.4m | |
| Independent Director | 8.92yrs | US$310.00k | 0.0086% $ 4.5m | |
| Independent Director | 2.42yrs | US$285.00k | 0.0015% $ 785.4k | |
| Independent Non-Executive Director | 1.5yrs | US$285.05k | 0.00091% $ 479.6k | |
| Independent Director | 6.75yrs | US$310.00k | 0.0053% $ 2.8m |
7.6yrs
Average Tenure
65yo
Average Age
Experienced Board: MCO's board of directors are considered experienced (7.6 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$52.709b
- Shares outstanding: 187.70m
- 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 4 REPR 1 COM SH | BR | BRL | May 2019 |
Biography
Moody's Corporation provides credit ratings and assessment services; and credit, capital markets, and economic research, data, and analytical tools worldwide. It operates through two segments, Moody’s Inve ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/21 06:20 |
| End of Day Share Price | 2020/09/18 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.