Moody's Corporation provides credit ratings and assessment services; and credit, capital markets, and economic research, data, and analytical tools worldwide.
Slightly overvalued with limited growth.
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's share price has been volatile over the past 3 months.
7 Day Return
US Capital Markets
1 Year Return
US Capital Markets
Return vs Industry: MCO exceeded the US Capital Markets industry which returned -11.4% over the past year.
Return vs Market: MCO exceeded the US Market which returned -11.5% over the past year.
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 StHow Does Moody's's (NYSE:MCO) P/E Compare To Its Industry, After The Share Price Drop?
1 week ago | Simply Wall StHow Should Investors React To Moody's Corporation's (NYSE:MCO) CEO Pay?
3 weeks ago | Simply Wall StWho Has Been Selling Moody's Corporation (NYSE:MCO) Shares?
Is Moody's undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MCO ($220.19) is trading below our estimate of fair value ($394.14)
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 (29.3x) compared to the Capital Markets industry average (29.1x).
PE vs Market: MCO is poor value based on its PE Ratio (29.3x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: MCO is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: MCO is overvalued based on its PB Ratio (67.5x) compared to the US Capital Markets industry average (6.7x).
How is Moody's forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCO's forecast earnings growth (9.3% per year) is above the savings rate (1.7%).
Earnings vs Market: MCO's earnings (9.3% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: MCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: MCO's revenue (5.1% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: MCO's revenue (5.1% 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 (372.3%).
How has Moody's performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCO has high quality earnings.
Growing Profit Margin: MCO's current net profit margins (29.4%) are lower than last year (29.5%).
Past Earnings Growth Analysis
Earnings Trend: MCO's earnings have grown by 9.7% per year over the past 5 years.
Accelerating Growth: MCO's earnings growth over the past year (8.6%) is below its 5-year average (9.7% per year).
Earnings vs Industry: MCO earnings growth over the past year (8.6%) underperformed the Capital Markets industry 10.6%.
Return on Equity
High ROE: Whilst MCO's Return on Equity (170.73%) is outstanding, this metric is skewed due to their high level of debt.
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
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 0.7x 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.
What is Moody's's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCO's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: MCO's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (5.45%).
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ray McDaniel (61yo)
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 ($USD11.74M).
Compensation vs Earnings: Ray's compensation has increased by more than 20% in the past year.
|Senior VP & CFO||1.58yrs||US$2.84m||0.0040% $1.6m|
|Executive VP & COO||0.33yr||US$5.44m||0.028% $11.5m|
|Executive VP & General Counsel||19.42yrs||US$3.04m||0.030% $12.4m|
|Special Advisor||12.58yrs||US$3.56m||0.093% $38.2m|
|President of Moody's Analytics||0.33yr||US$2.56m||0.0067% $2.8m|
|MD, Assistant Controller||1.75yrs||no data||no data|
|Senior VP & Chief Information Officer||1.42yrs||no data||no data|
|Head of Investor Relations||0.50yr||no data||no data|
|Chief Compliance Officer||2.75yrs||no data||no data|
Experienced Management: MCO's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
|Independent Director||1.92yrs||US$285.00k||0.0023% $952.2k|
|Independent Chairman of the Board||7.92yrs||US$414.96k||0.047% $19.5m|
|Independent Director||15.92yrs||US$310.00k||0.024% $9.8m|
|Independent Director||4yrs||US$285.00k||0.0029% $1.2m|
|Independent Director||8.92yrs||US$285.00k||0.0099% $4.1m|
|Independent Director||8.42yrs||US$310.00k||0.0086% $3.5m|
|Independent Director||1.92yrs||US$285.00k||0.0015% $614.2k|
|Independent Non-Executive Director||1yr||US$285.05k||0.00091% $375.1k|
|Independent Director||6.25yrs||US$310.00k||0.0050% $2.0m|
Experienced Board: MCO's board of directors are considered experienced (7.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Moody's Corporation's company bio, employee growth, exchange listings and data sources
- Name: Moody's Corporation
- Ticker: MCO
- Exchange: NYSE
- Founded: 1900
- Industry: Financial Exchanges and Data
- Sector: Diversified Financials
- Market Cap: US$41.221b
- Shares outstanding: 187.21m
- Website: https://www.moodys.com
Number of Employees
- Moody's Corporation
- 7 World Trade Center
- 250 Greenwich Street
- New York
- New York
- United States
|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|
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 Investors Service and Moody’s Analytics. The Moody’s Investors Service segment publishes credit ratings and provides assessment services 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, 2019, this segment had ratings relationships with approximately 4,900 non-financial corporate issuers; 4,100 financial institutions issuers; 17,200 public finance issuers; and 1,000 infrastructure and project finance issuers, as well as 9,500 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||2020/03/29 01:39|
|End of Day Share Price||2020/03/27 00:00|
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.