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Market Cap

US$70.8b

Last Updated

2021/09/16 22:51 UTC

Data Sources

Company Financials +

Executive Summary

Moody's Corporation operates as an integrated risk assessment firm worldwide. More Details


Snowflake Analysis

Adequate balance sheet with acceptable track record.


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 +/- 2% a week.

Volatility Over Time: MCO's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

MCO

-0.8%

US Capital Markets

-0.6%

US Market


1 Year Return

34.5%

MCO

63.2%

US Capital Markets

33.6%

US Market

Return vs Industry: MCO underperformed the US Capital Markets industry which returned 63.9% over the past year.

Return vs Market: MCO matched the US Market which returned 33.7% over the past year.


Shareholder returns

MCOIndustryMarket
7 Day-0.6%-0.8%-0.6%
30 Day-0.4%1.1%1.3%
90 Day9.1%9.2%5.3%
1 Year35.6%34.5%66.5%63.2%35.6%33.6%
3 Year118.6%112.8%79.7%66.6%60.9%51.0%
5 Year263.3%245.3%173.4%140.7%123.4%99.1%

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

Valuation

Is Moody's undervalued compared to its fair value and its price relative to the market?

33.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCO ($380.33) is trading above our estimate of fair value ($346.51)

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 (33.8x) compared to the US Capital Markets industry average (15.3x).

PE vs Market: MCO is poor value based on its PE Ratio (33.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MCO is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: MCO is good value based on its PB Ratio (32.4x) compared to the US Capital Markets industry average (61.2x).


Future Growth

How is Moody's forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCO's forecast earnings growth (5.9% per year) is above the savings rate (2%).

Earnings vs Market: MCO's earnings (5.9% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: MCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: MCO's revenue (5.5% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: MCO's revenue (5.5% 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 (89.8%).


Past Performance

How has Moody's performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCO has high quality earnings.

Growing Profit Margin: MCO's current net profit margins (36.1%) are higher than last year (33.4%).


Past Earnings Growth Analysis

Earnings Trend: MCO's earnings have grown significantly by 25.6% per year over the past 5 years.

Accelerating Growth: MCO's earnings growth over the past year (20.6%) is below its 5-year average (25.6% per year).

Earnings vs Industry: MCO earnings growth over the past year (20.6%) underperformed the Capital Markets industry 77.4%.


Return on Equity

High ROE: Whilst MCO's Return on Equity (87.98%) 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 ($4.7B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: MCO's short term assets ($4.7B) do not cover its long term liabilities ($8.1B).


Debt to Equity History and Analysis

Debt Level: MCO's debt to equity ratio (267.2%) 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 (38.3%).

Interest Coverage: MCO's interest payments on its debt are well covered by EBIT (25.5x coverage).


Balance Sheet


Dividend

What is Moody's current dividend yield, its reliability and sustainability?

0.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MCO's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: MCO's dividend (0.65%) is low compared to the top 25% of dividend payers in the US market (3.58%).


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

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Rob Fauber (51 yo)

0.67

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 Director of Moody's Corporation since October 22, 2020...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD5.79M) is below average for companies of similar size in the US market ($USD11.33M).

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 (2.9 years average tenure).


Board Members

Experienced Board: MCO's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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$70.809b
  • Shares outstanding: 186.18m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:51
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.