NYSE:MCO

Stock Analysis Report

Executive Summary

Moody's Corporation provides credit ratings; and credit, capital markets, and economic research, data, and analytical tools worldwide.

Snowflake

Fundamentals

Average dividend payer 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


Market Performance


7 Day Return

1.7%

NYSE:MCO

1.6%

US Capital Markets

-0.02%

US Market


1 Year Return

21.9%

NYSE:MCO

-1.2%

US Capital Markets

1.6%

US Market

MCO outperformed the Capital Markets industry which returned -0.1% over the past year.

MCO outperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

MCOIndustryMarket
7 Day1.7%1.6%-0.02%
30 Day-0.4%5.3%2.7%
90 Day9.8%5.7%1.4%
1 Year23.2%21.9%1.0%-1.2%3.8%1.6%
3 Year105.0%98.0%57.4%48.5%45.2%35.8%
5 Year144.4%129.6%77.1%60.9%61.8%44.1%

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

Valuation

Is Moody's undervalued based on future cash flows and its price relative to the stock market?

8%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Moody's's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Moody's's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Moody's is good value based on earnings compared to the US Capital Markets industry average.

Moody's is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Moody's is poor value based on expected growth next year.


Price Based on Value of Assets

Moody's is overvalued based on assets compared to the US Capital Markets industry average.


Next Steps

Future Growth

How is Moody's expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Moody's's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Moody's's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).

Moody's's revenue growth is positive but not above the United States of America market average.

Moody's's earnings growth is positive but not above the United States of America market average.

Moody's's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Moody's is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

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

4.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Moody's's year on year earnings growth rate has been positive over the past 5 years.

Moody's's 1-year earnings growth exceeds its 5-year average (13.9% vs 4.9%)

Moody's's earnings growth has not exceeded the US Capital Markets industry average in the past year (13.9% vs 36.2%).


Return on Equity

Whilst Moody's made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Moody's used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.


Return on Capital Employed

Moody's's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Moody's's financial position?


Financial Position Analysis

Moody's is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Moody's's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Moody's's level of debt (937.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (265.5% vs 937.5% today).

Debt is well covered by operating cash flow (26.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

1.04%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Moody's's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Moody's's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).


Next Steps

Management

What is the CEO of Moody's's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Ray McDaniel (61yo)

14.4yrs

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

Ray's remuneration is about average for companies of similar size in United States of America.

Ray's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.5yrs

Average Tenure

58yo

Average Age

The tenure for the Moody's management team is about average.


Board Age and Tenure

6.6yrs

Average Tenure

64yo

Average Age

The tenure for the Moody's board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$171,93417 May 19
Robert Fauber
EntityIndividual
Role
Senior Key Executive
President of Moody's Investors Service
Shares920
Max PriceUS$187.25
SellUS$254,08015 May 19
Robert Fauber
EntityIndividual
Role
Senior Key Executive
President of Moody's Investors Service
Shares1,380
Max PriceUS$184.85
SellUS$728,63014 May 19
Richard Cantor
EntityIndividual
Shares3,959
Max PriceUS$184.04
SellUS$94,69107 May 19
Melanie Hughes
EntityIndividual
Shares480
Max PriceUS$197.27
SellUS$176,66419 Nov 18
Blair Worrall
EntityIndividual
Shares1,200
Max PriceUS$147.22

Ownership Breakdown


Management Team

  • Ray McDaniel (61yo)

    President

    • Tenure: 14.4yrs
    • Compensation: US$10.56m
  • John Goggins (58yo)

    Executive VP & General Counsel

    • Tenure: 18.9yrs
    • Compensation: US$2.06m
  • Mark Almeida (59yo)

    President of Moody's Analytics

    • Tenure: 12.1yrs
    • Compensation: US$3.45m
  • Jeff Hare

    Senior Vice President of Risk Management

    • Tenure: 0yrs
    • Compensation: US$1.23m
  • Rob Fauber (49yo)

    President of Moody's Investors Service

    • Tenure: 6.7yrs
    • Compensation: US$2.82m
  • Shivani Kak

    Head of Investor Relations

    • Tenure: 0yrs
  • Mark Kaye (39yo)

    Senior VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$3.37m
  • Helene Gurian

    Chief Compliance Officer

    • Tenure: 2.3yrs
  • David Hogan

    MD, Assistant Controller

    • Tenure: 1.3yrs
  • Mona Breed

    Senior VP & Chief Information Officer

    • Tenure: 0.9yrs

Board Members

  • Vince Forlenza (66yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$258.68k
  • Hank McKinnell (76yo)

    Chairman of the Board

    • Tenure: 7.4yrs
    • Compensation: US$415.08k
  • Basil Anderson (74yo)

    Director

    • Tenure: 15.4yrs
    • Compensation: US$310.06k
  • Ray McDaniel (61yo)

    President

    • Tenure: 14.4yrs
    • Compensation: US$10.56m
  • Bruce Van Saun (62yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$285.06k
  • Jorge Bermudez (67yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: US$285.06k
  • Kathy Hill (62yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$310.06k
  • Gerrit Zalm (67yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$258.68k
  • Thérèse Esperdy (58yo)

    Non-Executive Director

    • Tenure: 0.5yrs
  • Leslie Seidman (57yo)

    Director

    • Tenure: 5.8yrs
    • 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$41.011b
  • Shares outstanding: 189.20m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCONYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1998
DUTDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1998
MCO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1998
0K36LSE (London Stock Exchange)YesCommon StockGBUSDJun 1998
MCOR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 0.25 COM USD0.01BRBRLMay 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’ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:39
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.