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Moody's

NYSE:MCO
Snowflake Description

Average dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MCO
NYSE
$37B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Moody's Corporation provides credit ratings; and credit, capital markets, and economic research, data, and analytical tools worldwide. The last earnings update was 52 days ago. More info.


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MCO Share Price and Events
7 Day Returns
1.2%
NYSE:MCO
0.7%
US Capital Markets
2.2%
US Market
1 Year Returns
12.8%
NYSE:MCO
-9.4%
US Capital Markets
3.8%
US Market
MCO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Moody's (MCO) 1.2% 5.1% 9.7% 12.8% 107.7% 121.3%
US Capital Markets 0.7% 1.5% 5% -9.4% 60.9% 58.9%
US Market 2.2% 4.2% 4.4% 3.8% 43% 40.9%
1 Year Return vs Industry and Market
  • MCO outperformed the Capital Markets industry which returned -9.4% over the past year.
  • MCO outperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
MCO
Industry
5yr Volatility vs Market

MCO Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Moody's to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Moody's.

NYSE:MCO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $5.38 * 208.4%
$11.20
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $5.38
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MCO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.696 (1 + (1- 21%) (16.7%))
0.858
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.858 * 5.96%)
7.84%

Discounted Cash Flow Calculation for NYSE:MCO using Excess Returns Model Model

The calculations below outline how an intrinsic value for Moody's is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:MCO Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (208.4% – 7.84%) * $5.38)
$10.78
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $10.78 / (7.84% - 2.73%)
$210.89
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $5.38 + $210.89
$216.26
NYSE:MCO Discount to Share Price
Calculation Result
Value per share (USD) From above. $216.26
Current discount Discount to share price of $194.56
= -1 x ($194.56 - $216.26) / $216.26
10%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Moody's is available for.
Intrinsic value
10%
Share price is $194.56 vs Future cash flow value of $216.26
Current Discount Checks
For Moody's to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Moody's's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Moody's's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MCO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $6.84
NYSE:MCO Share Price ** NYSE (2019-06-21) in USD $194.56
United States of America Capital Markets Industry PE Ratio Median Figure of 90 Publicly-Listed Capital Markets Companies 35.78x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Moody's.

NYSE:MCO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MCO Share Price ÷ EPS (both in USD)

= 194.56 ÷ 6.84

28.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Moody's's expected growth come at a high price?
Raw Data
NYSE:MCO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 28.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
8.8%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 33 Publicly-Listed Capital Markets Companies 2.08x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:MCO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 28.43x ÷ 8.8%

3.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Moody's is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Moody's's assets?
Raw Data
NYSE:MCO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $0.65
NYSE:MCO Share Price * NYSE (2019-06-21) in USD $194.56
United States of America Capital Markets Industry PB Ratio Median Figure of 174 Publicly-Listed Capital Markets Companies 7.87x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.81x
NYSE:MCO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MCO Share Price ÷ Book Value per Share (both in USD)

= 194.56 ÷ 0.65

299.42x

* Primary Listing of Moody's.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Moody's is overvalued based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess Moody's's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Moody's has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MCO Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Moody's expected to grow at an attractive rate?
  • Moody's's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Moody's's earnings growth is positive but not above the United States of America market average.
  • Moody's's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MCO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MCO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 8.8%
NYSE:MCO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 5.6%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MCO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MCO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 5,812 1,995 1
2022-12-31 5,493 1,851 1
2021-12-31 5,278 1,728 6
2020-12-31 4,975 1,930 1,584 15
2019-12-31 4,678 1,691 1,427 15
NYSE:MCO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 4,458 1,437 1,310
2018-12-31 4,443 1,461 1,310
2018-09-30 4,548 1,489 1,085
2018-06-30 4,530 1,573 1,092
2018-03-31 4,356 1,659 1,028
2017-12-31 4,204 755 1,001
2017-09-30 3,981 720 547
2017-06-30 3,835 672 485
2017-03-31 3,763 493 428
2016-12-31 3,604 1,259 267
2016-09-30 3,528 1,149 913
2016-06-30 3,446 1,106 889

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Moody's's earnings are expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
  • Moody's's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MCO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Moody's Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MCO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 11.21 11.21 11.21 1.00
2022-12-31 10.25 10.25 10.25 1.00
2021-12-31 9.47 9.61 9.34 4.00
2020-12-31 8.42 8.69 8.07 11.00
2019-12-31 7.47 7.57 7.30 11.00
NYSE:MCO Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 6.84
2018-12-31 6.84
2018-09-30 5.66
2018-06-30 5.71
2018-03-31 5.38
2017-12-31 5.24
2017-09-30 2.86
2017-06-30 2.53
2017-03-31 2.23
2016-12-31 1.38
2016-09-30 4.70
2016-06-30 4.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Moody's is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Moody's's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Moody's has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MCO Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Moody's's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (27.4% vs 3.4%)
  • Moody's's earnings growth has not exceeded the US Capital Markets industry average in the past year (27.4% vs 87.6%).
Earnings and Revenue History
Moody's's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Moody's Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MCO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 4,458.10 1,309.60 1,098.20
2018-12-31 4,442.70 1,309.60 1,089.10
2018-09-30 4,548.10 1,084.80 1,117.60
2018-06-30 4,530.20 1,091.90 1,100.00
2018-03-31 4,355.60 1,027.90 1,045.40
2017-12-31 4,204.10 1,000.60 997.60
2017-09-30 3,980.70 546.50 944.70
2017-06-30 3,834.90 484.50 921.40
2017-03-31 3,763.30 427.80 929.20
2016-12-31 3,604.20 266.60 943.40
2016-09-30 3,528.00 913.10 934.50
2016-06-30 3,445.80 889.40 933.60
2016-03-31 3,435.00 895.60 932.00
2015-12-31 3,484.50 941.30 920.70
2015-09-30 3,496.10 959.70 918.10
2015-06-30 3,477.30 943.30 903.80
2015-03-31 3,432.70 1,000.80 894.00
2014-12-31 3,334.30 988.70 869.30
2014-09-30 3,236.00 959.10 840.10
2014-06-30 3,125.40 927.80 818.80
2014-03-31 3,007.90 834.10 787.00
2013-12-31 2,972.50 804.50 815.20
2013-09-30 2,947.50 757.90 827.30
2013-06-30 2,930.50 757.90 831.70
2013-03-31 2,815.30 704.90 806.00
2012-12-31 2,730.30 690.00 752.10
2012-09-30 2,543.20 626.10 703.20
2012-06-30 2,386.00 572.90 658.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • Moody's used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • Moody's's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Moody's's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Moody's has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MCO Health

 How is Moody's's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Moody's's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Moody's's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Moody's Company Filings, last reported 2 months ago.

NYSE:MCO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 325.00 6,160.60 1,310.60
2018-12-31 656.50 5,681.30 1,817.50
2018-09-30 606.10 4,968.50 1,145.50
2018-06-30 460.10 5,338.50 1,415.70
2018-03-31 420.00 5,507.60 1,377.80
2017-12-31 -114.90 5,544.00 1,183.30
2017-09-30 -156.80 5,721.40 1,071.10
2017-06-30 -467.50 4,887.10 3,367.20
2017-03-31 -724.20 4,076.20 2,262.40
2016-12-31 -1,027.30 3,363.00 2,224.90
2016-09-30 -357.90 3,418.10 2,057.90
2016-06-30 -369.50 3,420.40 2,026.80
2016-03-31 -351.50 3,428.60 2,066.70
2015-12-31 -333.00 3,380.60 2,232.20
2015-09-30 -240.20 3,124.50 1,941.30
2015-06-30 -103.40 3,106.10 2,047.50
2015-03-31 -146.20 3,095.10 1,995.40
2014-12-31 42.90 2,547.30 1,677.60
2014-09-30 617.90 2,536.50 2,105.60
2014-06-30 796.50 2,104.50 1,959.30
2014-03-31 499.80 2,097.50 1,969.50
2013-12-31 427.90 2,101.80 2,106.30
2013-09-30 373.40 2,098.60 2,044.70
2013-06-30 535.50 1,605.00 1,650.90
2013-03-31 540.20 1,642.20 1,769.60
2012-12-31 468.90 1,671.90 1,773.30
2012-09-30 391.30 1,709.00 1,541.20
2012-06-30 178.80 1,240.80 839.50
  • Moody's's level of debt (1707.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (417% vs 1707.6% today).
  • Debt is well covered by operating cash flow (25.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.8x coverage).
X
Financial health checks
We assess Moody's's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Moody's has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MCO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.03%
Current annual income from Moody's dividends. Estimated to be 1.1% next year.
If you bought $2,000 of Moody's shares you are expected to receive $21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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 (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MCO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 41 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MCO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.38 4.00
2020-12-31 2.23 10.00
2019-12-31 1.93 10.00
NYSE:MCO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-16 2.000 1.053
2019-02-15 2.000 1.126
2018-10-23 1.760 1.172
2018-07-10 1.760 1.022
2018-04-24 1.760 1.026
2018-01-24 1.760 1.076
2017-10-24 1.520 1.016
2017-07-11 1.520 1.130
2017-04-25 1.520 1.282
2016-12-21 1.520 1.420
2016-10-18 1.480 1.481
2016-07-12 1.480 1.390
2016-04-13 1.480 1.531
2015-12-15 1.480 1.617
2015-10-21 1.360 1.351
2015-07-24 1.360 1.317
2015-04-17 1.360 1.250
2014-12-17 1.360 1.391
2014-10-24 1.120 1.136
2014-07-25 1.120 1.212
2014-04-25 1.120 1.311
2013-12-18 1.120 1.433
2013-10-25 1.000 1.367
2013-07-24 1.000 1.466
2013-05-03 0.800 1.267
2012-12-11 0.800 1.551
2012-10-26 0.640 1.350
2012-07-26 0.640 1.517
2012-04-26 0.640 1.736
2011-12-14 0.640 1.668
2011-10-27 0.560 1.639
2011-07-27 0.560 1.791
2011-04-27 0.560 1.464
2010-12-15 0.460 1.496
2010-10-28 0.420 1.545
2010-07-29 0.420 1.732
2010-04-21 0.420 1.935
2009-12-15 0.420 1.513
2009-10-29 0.400 1.666
2009-07-29 0.400 1.684

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Moody's's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.4x coverage).
X
Income/ dividend checks
We assess Moody's's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Moody's afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Moody's has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MCO Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ray McDaniel
COMPENSATION $10,556,511
AGE 60
TENURE AS CEO 14.2 years
CEO Bio

Mr. Raymond W. McDaniel, Jr., also known as Ray, has been the Chief Executive Officer and President at Moody's Corporation since April 26, 2005 and April 2012 respectively. In this role, Mr. McDaniel is responsible for all activities of the corporation and its two operating divisions, Moody's Investors Service, Inc., the credit rating agency and Moody's Analytics. He has extensive international experience; and also has experience in implementing international business expansion and new products. Mr. McDaniel also served as the President at Moody's Corporation from October 2004 to April 2005 and Executive Vice President from April 22, 2003 to January 2004, as Chief Operating Officer from January 06, 2004 to April 2005 and as Senior Vice President of Global Ratings and Research from October 01, 2000 to April 22, 2003. He served as the Chairman at Moody’s Investors Service, Inc. from October 2007 until June 2015. He served as Chief Executive Officer at Moody’s Investors Service, Inc. since October 2007. He served as the President at Moody's Investors Service, Inc. from November 2001 to August 7, 2007 and again from December 2008 to November 2010. He served as a Senior Managing Director of Global Ratings and Research from November 2000 to November 2001, Managing Director of International from 1996 to November 2000 and Managing Director of Europe from 1993 to 1996 at Moody’s Investors Service Inc. Mr. McDaniel served as an Associate Director at Moody’s Structured Finance Group from 1989 to 1993 and as Senior Analyst in the Mortgage Securitization Group from 1988 to 1989 at the firm. He joined Moody's in 1987 in structured finance team and began his career as a Senior Analyst in the Asset Securitization department. Mr. McDaniel served as the Chairman of Moody's Corporation from April 26, 2005 to April 2012. He has been an Executive Director of Moody's Corporation since April 22, 2003. Mr. McDaniel has been a Director of John Wiley & Sons, Inc. since September 15, 2005 and of National Council on Economic Education. He helped lead the company to record levels of financial performance and implemented important enhancements to Moody's ratings practices. Some of these initiatives include growing the core ratings and research business globally, implementing international expansion and new products and improving professional practices in the ratings business by enhancing credit policies and credit research capabilities. He was a Director of Moody’s Europe, based in London. In 2015, Mr. McDaniel was named as a member of the Board of Trustees of Muhlenberg College. Mr. McDaniel was admitted to the Bar of the State of New York in 1984. He holds a JD degree from Emory University School of Law and a Bachelor of Arts degree in Political Science from Colgate University.

CEO Compensation
  • Ray's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ray's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Moody's management team in years:

2
Average Tenure
56
Average Age
  • The tenure for the Moody's management team is about average.
Management Team

Ray McDaniel

TITLE
President
COMPENSATION
$11M
AGE
60
TENURE
14.2 yrs

Mark Kaye

TITLE
Senior VP & CFO
COMPENSATION
$3M
AGE
38
TENURE
0.8 yrs

John Goggins

TITLE
Executive VP & General Counsel
COMPENSATION
$2M
AGE
57
TENURE
18.7 yrs

Mark Almeida

TITLE
President of Moody's Analytics
COMPENSATION
$3M
AGE
58
TENURE
11.8 yrs

Jeff Hare

TITLE
Senior Vice President of Risk Management
COMPENSATION
$1M

Rob Fauber

TITLE
President of Moody's Investors Service
COMPENSATION
$3M
AGE
48
TENURE
6.4 yrs

David Hogan

TITLE
MD, Assistant Controller & Principal Accounting Officer
TENURE
1 yrs

Mona Breed

TITLE
Senior VP & Chief Information Officer
TENURE
0.7 yrs

Helene Gurian

TITLE
Chief Compliance Officer
TENURE
2 yrs

Melanie Hughes

TITLE
Senior VP & Chief Human Resources Officer
AGE
55
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Moody's board of directors in years:

6.3
Average Tenure
63
Average Age
  • The tenure for the Moody's board of directors is about average.
Board of Directors

Hank McKinnell

TITLE
Chairman of the Board
COMPENSATION
$415K
AGE
75
TENURE
7.2 yrs

Ray McDaniel

TITLE
President
COMPENSATION
$11M
AGE
60
TENURE
16.2 yrs

Basil Anderson

TITLE
Director
COMPENSATION
$310K
AGE
73
TENURE
15.2 yrs

Kathy Hill

TITLE
Director
COMPENSATION
$310K
AGE
61
TENURE
7.7 yrs

Leslie Seidman

TITLE
Director
COMPENSATION
$310K
AGE
56
TENURE
5.5 yrs

Jorge Bermudez

TITLE
Director
COMPENSATION
$285K
AGE
66
TENURE
8.2 yrs

Bruce Van Saun

TITLE
Director
COMPENSATION
$285K
AGE
61
TENURE
3.3 yrs

Gerrit Zalm

TITLE
Director
COMPENSATION
$259K
AGE
66
TENURE
1.2 yrs

Vince Forlenza

TITLE
Director
COMPENSATION
$259K
AGE
65
TENURE
1.2 yrs

Thérèse Esperdy

TITLE
Non-Executive Director
AGE
57
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Moody's insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. May 19 Sell Robert Fauber Individual 16. May 19 17. May 19 -920 $187.25 $-171,934
15. May 19 Sell Robert Fauber Individual 13. May 19 15. May 19 -1,380 $184.85 $-254,080
14. May 19 Sell Richard Cantor Individual 13. May 19 13. May 19 -3,959 $184.04 $-728,630
07. May 19 Sell Melanie Hughes Individual 06. May 19 06. May 19 -480 $197.27 $-94,691
19. Nov 18 Sell Blair Worrall Individual 16. Nov 18 16. Nov 18 -1,200 $147.22 $-176,664
08. Aug 18 Buy Linda Huber Individual 06. Aug 18 06. Aug 18 915 $172.31 $157,667
X
Management checks
We assess Moody's's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Moody's has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MCO News

Simply Wall St News

Should You Be Adding Moody's (NYSE:MCO) To Your Watchlist Today?

So if you're like me, you might be more interested in profitable, growing companies, like Moody's (NYSE:MCO). … Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. … As I already mentioned, Moody's is a growing business, which is what I like to see.

Simply Wall St -

Moody's Corporation (NYSE:MCO): Poised For Long Term Success?

As Moody's Corporation (NYSE:MCO) released its earnings announcement on 31 March 2019, analysts seem cautiously optimistic, as a 12% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 3.4%. … To get an idea of the overall earnings growth trend for MCO, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. … NYSE:MCO Past and Future Earnings, May 28th 2019 This results in an annual growth rate of 8.8% based on the most recent earnings level of US$1.3b to the final forecast of US$1.8b by 2022.

Simply Wall St -

Why Moody's Corporation (NYSE:MCO) Is A Top Dividend Stock

Could Moody's Corporation (NYSE:MCO) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. A slim 1.1% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Moody's could have potential. The company also bought back stock during the year, equivalent to approximately 1.8% of the company's market capitalisation at the time. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Click the interactive chart for our full dividend analysis NYSE:MCO Historical Dividend Yield, May 14th 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Moody's paid out 27% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Of the free cash flow it generated last year, Moody's paid out 25% as dividends, suggesting the dividend is affordable. Is Moody's's Balance Sheet Risky? As Moody's has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Here's What Moody's Corporation's (NYSE:MCO) P/E Ratio Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Moody's has a price to earnings ratio of 28.45, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Are Insiders Selling Moody's Corporation (NYSE:MCO) Stock?

The Last 12 Months Of Insider Transactions At Moody's. … In the last twelve months, the biggest single sale by an insider was when the , Richard Cantor, sold US$727k worth of shares at a price of US$167 per share. … That means that even when the share price was below the current price of US$191, an insider wanted to cash in some shares.

Simply Wall St -

At US$187, Is Moody's Corporation (NYSE:MCO) Worth Looking At Closely?

led the NYSE gainers with a relatively large price hike in the past couple of weeks. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price

Simply Wall St -

Announcing: Moody's (NYSE:MCO) Stock Increased An Energizing 110% In The Last Five Years

One great example is Moody's Corporation (NYSE:MCO) which saw its share price drive 110% higher over five years. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, Moody's achieved compound earnings per share (EPS) growth of 13% per year.

Simply Wall St -

Will Moody's Corporation's (NYSE:MCO) Earnings Grow In The Years Ahead?

Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … In December 2018, Moody's Corporation (NYSE:MCO) released its most recent earnings announcement, whicha

Simply Wall St -

What Should Investors Know About The Future Of Moody's Corporation's (NYSE:MCO)?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … In September 2018, Moody's Corporation (NYSE:MCO) released its earnings update.

Simply Wall St -

Should You Be Tempted To Sell Moody's Corporation (NYSE:MCO) Because Of Its P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Moody's Corporation's (NYSE:MCO) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

MCO Company Info

Description

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.

Details
Name: Moody's Corporation
MCO
Exchange: NYSE
Founded: 1900
$36,888,576,000
189,600,000
Website: http://www.moodys.com
Address: Moody's Corporation
7 World Trade Center,
250 Greenwich Street,
New York,
New York, 10007,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MCO Common Stock New York Stock Exchange US USD 19. Jun 1998
DB DUT Common Stock Deutsche Boerse AG DE EUR 19. Jun 1998
LSE 0K36 Common Stock London Stock Exchange GB USD 19. Jun 1998
BMV MCO * Common Stock Bolsa Mexicana de Valores MX MXN 19. Jun 1998
BOVESPA MCOR34 BDR EACH 1 REPR 0.25 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 13. May 2019
Number of employees
Current staff
Staff numbers
13,237
Moody's employees.
Industry
Financial Exchanges and Data
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 23:42
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/11
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.